Why is the CFO to CEO track so common?

Profitability is the key reason companies exist and the CFO is in the driver’s seat to take the company forward. This includes debt funding , dealing with investors and also an in-depth understanding of the business .

All aspects of a business have direct or indirect financial impacts so the Finance function is uniquely situated to crossing lines of business and other functional areas looking for understanding, results and new ways to tangibly measure success while partnering with all business areas.  This breadth of business exposure, coupled with business acumen and a data driven accountability focus uniquely situate CFOs to make very strong CEOs.  That being said, to successfully make the transition often requires deep knowledge of the industry, the stakeholders and the culture which comes with time and tenure at the same company.  It may not be a causality that makes CFOs into CEOs but a shared characteristic of good CFOs overall being well compensated, difficult to poach and long tenured and those attributes may also be what truly drives the transition.