In today’s highly uncertain macro-economic and geo-political climate, companies are placing an ever-greater premium on sector-specific experience when appointing Chief Financial Officers (CFOs).

David Taylor, Associate Partner in Eton Bridge Partners’ Finance Search Practice, shares his thoughts on why sector expertise has become a key driver for CFO appointments in 2025, and what it means for candidates and clients alike.

Why sector expertise is back in the spotlight

According to Eton Bridge Partners’ 2025 CFO Pathways Report, sector experience has re-emerged as a dominant trend. In most countries, over 90% of CFO hires came from within the same industry.

The resurgence in industry-specific hiring speaks volumes: to lead in finance today, deep sector knowledge is a key differentiator. I attended an event recently where the acting CFO of Unilever, Srinivas Phatak, spoke about the crucial importance of truly understanding your value chain to be successful as a CFO. Of course you can learn that over time in a new industry. However, given the challenging economic environment we are currently in, companies want someone who can make an impact quickly.

Across all ten core markets examined, companies are overwhelmingly prioritising candidates who can “hit the ground running” within their industry’s unique regulatory, financial, and operational context. This trend is especially pronounced in highly regulated sectors such as financial services, healthcare & technology, where strategic decisions are tightly interwoven with compliance, innovation timelines, and capital allocation cycles.

Let’s look at the data:

• In Japan, a staggering 97% of CFO hires remained within the same sector.
• In Australia and Hong Kong, sector loyalty hit 95%, while the US, UK, China, and Canada all reported 90% or more.
• The outlier? Sweden, where only 82% of CFOs came from the same industry which suggests a slightly greater appetite for generalist skills.

Although general leadership capabilities hold value, sector expertise has become the foundational requirement across most markets.

Regulated industries demand more than numbers

In financial services, CFOs must navigate intense regulatory scrutiny, capital adequacy frameworks, and dynamic risk profiles. In healthcare and biotech, they’re expected to understand long R&D cycles, IP valuation, and payer ecosystems. In technology, leaders must balance growth metrics with volatile funding markets and shifting compliance standards.

Boards and investors simply can’t afford steep learning curves in these contexts.

As the report notes: “In almost every market, sector expertise continues to be a top priority. This is especially true in regulated industries like financial services, healthcare, and tech.”

Internal development vs. external expertise

The report also highlights that internal promotions dominate in many countries, with companies nurturing finance leaders who’ve already grown within the sector. In the US, UK, and Australia, more than 59% of CFOs were promoted from within—underscoring the value placed on internal candidates who bring both sector insight and company-specific knowledge.

However, when companies do look externally, the bar is set high. Boards tend to prefer seasoned CFOs with prior experience in the same industry, often favouring “safe pairs of hands” with proven track records in transformation, M&A, or other transactions such as IPOs.

Cross-sector mobility: Still possible, but rare

Despite the dominance of sector-specific hiring, cross-sector mobility is not entirely off the table, particularly in progressive markets like Sweden, or when candidates can articulate how their previous experience translates to new industry challenges.

As the report observes: “Those who can draw clear, confident parallels between industries are increasingly standing out.” Also, if you can display direct experience of delivering similar change to what the company requires, you may be successful i.e. leading transformation such as centralising finance or setting up shared services, integrating multiple acquisitions etc.

What this means for CFOs and businesses:

For aspiring CFOs:

1 – Build deep sector knowledge: whatever business you are in, spend time understanding the value chain; familiarise yourself with the commercial, regulatory, and operational intricacies of your industry significantly boosts your candidacy. To do this, embed yourself ‘in the business’, speaking with non-finance teams and asking questions. Boards are increasingly looking for CFOs who can anticipate sector-specific risks and take advantage of opportunities.

2 – Translate experience across sectors (if needed): If you’re coming from a different industry, don’t assume that your experience speaks for itself. You’ll need to clearly connect the dots between your achievements and the challenges in the new sector. Companies are open to outsiders, but only when they demonstrate how their knowledge is relevant and applicable.

3 – Aim for visibility and strategic engagement: Especially in environments like PE-backed, high-growth, or transformation-stage companies, CFOs are expected to be highly visible and hands-on. Stakeholders want leaders who are close to the business, not just financially literate, but commercially engaged and operationally credible.

For businesses:

1 – Expect rising competition in specialist sectors: as demand outpaces supply, especially in highly regulated or rapidly growing industries like fintech, biotech, and renewables, securing CFOs with deep sector expertise is becoming more difficult – and costly. Delays in the hiring process or indecision can result in losing top-tier talent.

2 – Be open to first-time CFOs (with conditions): Boards increasingly recognise that not every effective CFO must come from a long lineage of similar roles. Many high-potential leaders (especially in fast-growing or transformation-stage companies) are proving their value in their first CFO role. However, these appointments succeed best when the individual has strong sector credentials, a solid support system, and clear commercial impact.

By leaning into sector expertise whilst maintaining flexibility around leadership profiles, organisations and aspiring CFOs can both thrive in a dynamic financial leadership market.

In conclusion, our 2025 CFO Pathways Report clearly underscores that sector expertise has reclaimed its status as a critical factor in CFO appointments worldwide. As businesses navigate increasingly complex regulatory landscapes and fast-evolving markets, companies are prioritising CFO candidates who bring deep, industry-specific knowledge and can seamlessly integrate strategic financial leadership within their sector’s unique context. This focus not only accelerates impact, but also mitigates risks in a highly volatile world.

While sector expertise is clearly in demand, we also encourage clients to keep an open mind. The data shows a strong trend, but exceptional leaders do exist outside traditional sector boundaries. Candidates who can compellingly translate cross-sector experience should not be overlooked. After all, innovation often comes from fresh perspectives.

If you’re looking for the right finance leader who truly understands your sector, please get in touch.

Download our latest CFO Pathways report