CFO'S RISE TO THE TOP

MORE AND MORE CFOS ARE BECOMING CEOS AS BUSINESSES OPT FOR FINANCIALLY GROUNDED LEADERSHIP. WHAT EXPLAINS THIS SHIFT?

- MAMTA SHARMA

P.B. BALAJI HAS become the latest in a long list of chief financial officers (CFOs) rising to the office of chief executive officers (CEOs) at global companies, epitomising a trajectory that's becoming the norm in a world characterised by flux.

The 54-year-old Group CFO of Tata Motors Ltd has been named CEO of Jaguar Land Rover Ltd (JLR) effective November 17, 2025, making him the first Indian to rise to the top position at the British luxury automobile maker. An alumnus of Indian Institute of Technology, Madras, and Indian Institute of Management, Calcutta, Balaji succeeds Adrian Mardell, who is retiring after a 35-year career at JLR, three of them as CEO.

Balaji, who previously worked at consumer goods giant Hindustan Unilever, brings financial discipline, strategic insights and boardroom credibility to JLR at a time the automaker is beset by challenges posed by US tariffs, a stalled transition to electric vehicles and pressure to reposition the brand.

Balaji's appointment also reflects a broader global trend: CFOs are increasingly stepping into top roles, capitalising on their perceived financial discipline and boardroom experience.

In 2023, 8.4% of vacant CEO positions in Fortune 500 and S&P 500 lists were filled by CFOs, the highest level since 2013, says CristKolder Associates, a corporate research group.

Closer home, a Russell Reynolds Associates' analysis of the top 100 BSE-listed companies, excluding the public sector, found that CFO turnover in 2024 surged to 24%, up sharply from 15% in 2023.

Of the 22 outgoing CFOs, 11 moved to new roles; the other half either retired or shifted to board-only positions. Notably, among those who took up new roles, 45% stayed with their companies, transitioning to CEO or divisional CEO positions.