Salary Growth for Healthcare CFOs Has Cooled, But Retention Risk Runs High

While compensation for healthcare and life sciences CFOs has stabilized in the last year or so, retention risk remains a critical issue, requiring private equity firms take a hard look at how they approach sourcing top finance talent.  

CFO Risk by the Numbers 

In JM Search’s 2025 Healthcare & Life Sciences CFO Compensation & Insights Study, which provides an in-depth look at the evolving priorities, compensation structures, and market pressures financial leaders face today, 59% of CFOs indicated that they had considered leaving their role in the past six months. When asked why they were considering departure, nearly half of CFOs surveyed (49%), reported that their time to exit had changed, primarily due to company performance (56%), industry headwinds (54%), and the interest rate environment (21%). 

Though deal activity increased in the latter half of 2025 and forecasts for 2026 remain optimistic, firms cannot safely assume that these market shifts will alleviate all CFO retention risk.  

Why CFO Turnover Matters Now  

CFO turnover has never been more of a risk to growth. Today’s CFOs are increasingly expected to create enterprise value beyond their traditional role delivering financial performance. When asked what drives the most value in their organizations, CFOs pointed to the following top three areas: EBITDA growth (74%), operational excellence (58%), and profitability improvement (42%).  

While strong EBITDA performance and profitability improvement has always been a hallmark of the CFO role, the increased focus on operational excellence requires a new level of leadership. Given the increasing reliance on CFOs to deliver value, healthcare and life sciences companies cannot ignore the threat posed by turnover. 

A Data-Driven Retention Strategy 

Data from our survey highlights a strategic approach that firms can take to reduce CFO turnover. Among those 59% of CFOs who said they had considered leaving, the overwhelming majority cited a disconnect between what they were led to believe when they took the job and the reality of the situation: 45% described that total equity or time to exit fell short of expectations; 35% pointed to weaker-than-expected company performance; and 19% referenced a challenging relationship with the CEO or board. 

In other words, firms can prevent CFO turnover by setting more realistic expectations about the business the CFO will be leading before they get into the seat. This may seem obvious, but given the flight risk indicated by CFOs, there is some misalignment between what firms are disclosing during the interview process and the organizations that CFOs find themselves leading after taking the job.  

By being transparent about realistic exit scenarios and clearly outlining potential timeline extensions, firms can increase their likelihood of retaining top finance talent and achieving the continuity required to successfully exit the business. 

To gain additional insights from 100+ Healthcare & Life Sciences CFOs, access JM Search’s 2025 Healthcare & Life Sciences CFO Compensation & Insights Study here.