Watchdog Transparency Blog

In our Blog we take a critical look at public company disclosures and focus on issues surrounding transparency, reliability and accuracy. It you are looking for cheerleading, you have come to the wrong place. We rely on information from the best sources available to gain insight into companies and make predictions about what will happen in the future. Nothing in business is certain, so sometimes we will be wrong, but we will always be an independent voice telling you the truth as we see it. We offer Retail Investors our Research Reports for Free.

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CFO Turnover Falls (a little) in 2020

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In 2020 CFO turnover fell from historic levels, yet CFO turnover maintains its long-term upward trend.

The CFO position may be one of the most important positions at any public company. Financial problems at a public company tend to fall in the lap of the CFO first. If the CFO departs under troubling circumstances, that can be a signal of trouble down the road.

When Lawrence Molloy left Under Armour in 2017 for “personal reasons” it was a serious red-flag. Under Armour soon disclosed significant accounting-related problems, problems that have resulted in an SEC investigation and a Wells Notice.

It is not surprising that our research consistently identifies red-flag CFO changes as leading indicators for securities class action litigation.

This post is derived from our 2021: Frequency and Impact of CFO Changes report authored by Joseph Burke and Joseph Yarborough. If you would like to read the report, please email jcheffers@watchdogresearch.com.

CFO changes have been rising steadily over the last ten years. In 2011, only 10.8% of companies reported a CFO change, whereas in 2020, 15.1% of companies reported a CFO change.

CFO turnover 2020.png

CFO changes reached historic highs in 2018 and 2019. The turnover in 2020 represents a slight decline from those historic highs, although it remains the third-highest year on record. The overall trend continues to bend upwards, signaling continued volatility in the market.

Red-flag CFO changes tend to follow the overall CFO turnover trends. Red-flag changes have also increased over the last 10 years, rising from 3.1% in 2011 to 4.8% of companies in 2020.

Our Watchdog Reports can help you keep an eye on over 30 crucial flags, like CFO turnover. Retail investors can see our reports for free. Investment and Insurance Professionals should contact jcheffers@watchdogresearch.com for special offers.

Watchdog Transparency Blog

In our Blog we take a critical look at public company disclosures and focus on issues surrounding transparency, reliability and accuracy. It you are looking for cheerleading, you have come to the wrong place. We rely on information from the best sources available to gain insight into companies and make predictions about what will happen in the future. Nothing in business is certain, so sometimes we will be wrong, but we will always be an independent voice telling you the truth as we see it. We offer Retail Investors our Research Reports for Free.

Sign up to get all of our blogs delivered directly to your inbox.

CFO Turnover Falls (a little) in 2020

by

In 2020 CFO turnover fell from historic levels, yet CFO turnover maintains its long-term upward trend.

The CFO position may be one of the most important positions at any public company. Financial problems at a public company tend to fall in the lap of the CFO first. If the CFO departs under troubling circumstances, that can be a signal of trouble down the road.

When Lawrence Molloy left Under Armour in 2017 for “personal reasons” it was a serious red-flag. Under Armour soon disclosed significant accounting-related problems, problems that have resulted in an SEC investigation and a Wells Notice.

It is not surprising that our research consistently identifies red-flag CFO changes as leading indicators for securities class action litigation.

This post is derived from our 2021: Frequency and Impact of CFO Changes report authored by Joseph Burke and Joseph Yarborough. If you would like to read the report, please email jcheffers@watchdogresearch.com.

CFO changes have been rising steadily over the last ten years. In 2011, only 10.8% of companies reported a CFO change, whereas in 2020, 15.1% of companies reported a CFO change.

CFO turnover 2020.png

CFO changes reached historic highs in 2018 and 2019. The turnover in 2020 represents a slight decline from those historic highs, although it remains the third-highest year on record. The overall trend continues to bend upwards, signaling continued volatility in the market.

Red-flag CFO changes tend to follow the overall CFO turnover trends. Red-flag changes have also increased over the last 10 years, rising from 3.1% in 2011 to 4.8% of companies in 2020.

Our Watchdog Reports can help you keep an eye on over 30 crucial flags, like CFO turnover. Retail investors can see our reports for free. Investment and Insurance Professionals should contact jcheffers@watchdogresearch.com for special offers.

© 2020 Watchdog Research, Inc. All rights reserved.
Watchdog Transparency is a publication based on reports created by Watchdog Research, Inc.
Watchdog Research, Inc. is a financial research company providing due diligence information on public companies.

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