Do Cfo's Make Good Ceo's?

This paper will discuss the reasons why CEOs are not being overpaid. It will apply the utilitarian ethical principle to many a few aspects to CEO compensation and whether or not it is justifiable for such pay. The paper will look at whether or not their performance is justifiable for the pay because they play such a big role in the livelihood of the company along with the principle agency theory and how it is being addressed for the benefit of the shareholders and others involved with the company, the supply and demand of the CEOs, and the paper will describe the comparison of other professions to help link the idea of CEOs being fairly compensated.

Another central feature of the board of directors is the question of whether the CEO is also the chairman of the board. When the CEO is also the chairman this is often referred to as “CEO duality”. In the US the CEO is often the chairman of the board. Studies have shown that the board in most cases

Instance, CFO should have financial related information to facilities understanding of option to resolve complex problem (Auditor General Victoria, 2004, pp.3). “Besides that, a good CFO demonstrates strong leadership and strategic vision within the financial department and with whole management team. At minimum, he or she must have the respected and support of the financial team, be a good motivator, and be necessary” (Marc Pfefferle, 2013).

The area that I chose to discuss under the CFO is the Director of Budgeting. The roles and responsibilities include handling the budget, and managing all expenditures and its limits, supervising staff, and analyzing profit goals, revenue, and expenses while complying the regulations of not only the company but the state and federal industry as well. Some additional methods of management that would fall under this area include directors of human resources. They work hand in hand with each other when it comes to making sure funds are available for new staff hiring, new functions of operations, employee medical and dental benefits, etc.

Anne Mulcahy was an employee of Xerox for 24 years that she spent within Sales, Human Resources and served as the chief of staff for former CEO, Paul Allaire. At 47 years old, all of that changed when Mulcahy took over as the CEO of Xerox. She had an excellent reputation within the company but nobody, not even herself, had pinned her as the CEO type. Many companies still believe in the old adage, that the CEO has to be a strong willed male, who saw the big picture, distanced himself from the rest of the company and has particular “leadership” characteristics. Mulcahy did not exude any of these above-mentioned characteristics besides the fact that she was very strong willed. As

Schafer and Bell (2005) discuss some of the things a Chief Executive Officer must do in order to provide strong financial leadership. One thing a Chief Executive Officer must do is hire a financial staff that is knowledgeable about not only basic finance practices but those that are specific to nonprofit needs such as the ins and outs of restricted and non-restricted funds and the use of the Statement of Accounting Standard 117. The CEO must also hire an appropriate amount of staff to make sure everything is being done in the most efficient manner and allow for accountability. Schafer and Bell (2005) also talked about following a standardized set of financial practices that help keep the organization in line with everyone else so if new staff do come in they are able to come into a system that they are more than likely familiar with. The other thing that Schafer and Bell (2005) talk about is having a uniform accounting system. To do this an organization must have a chart of accounts which helps keep track of all financials and makes it easy for non-finance staff to interact with. Most of all, whether an organization’s CEO has a finance background or not it is their responsibility to develop that skill so they are able to successfully navigate that aspect of their organization and have a strong financial presence so they are able to lead in that

CEO is one of the most sought-after and least understood, jobs in a company. Everyone believes that

Being the CEO of a company, your personality does affect the business of the company. In this article,

Obviously, the pros of hiring a CFO to be a CEO would be that the person would prepare great plans, monitor them carefully and control them with perfection. The person would ensure the financial stability of the company, and that the company complies with all laws, and the creditors were paid in time. In other words, the person would develop a great reputation for the company with the investors and stockholders, and the credit rating of the company is likely to increase. Consequently, the person would bring about perfection in internal control, set up an excellent system for planning in every department, and make policies systematically. (Source: bridgespan.org).

There are some that will say that true leaders surround themselves with great people. Although that may be true, when it comes to the financial health of the organization, simply having a trusted Chief Financial Officer (CFO), financial team, or financial consultant is not enough. “A senior executive without an understanding of finance cannot make use of such information or make financial decisions to lead the organization well” (Crawford, 2010). So what is an organization to do? The easiest, most effective method is simply to recruit a leader that already has a background in finances. As reported in Forbes magazine, “about 30 percent of Fortune 500 CEOs spent the first few years of their careers developing a strong foundation in

To successfully steer a corporation across the span of years by integrating its strengths toward the goal of creating wealth, requires from the CEO exceptional thought and judgment. Excellent CEOs are as rare as MLB-caliber pitchers or NFL-caliber quarterbacks. And in the business world, every day is the Super Bowl. There is no off-season or respite from the need to perform at one's peak.

The Chief Executive Officer (CEO) is the highest-level of management within an organization. The CEO oversees all the lower-level employees and the other senior executives such as the Chief Financial Officer (CFO). Therefore, the CEO provides leadership to the CFO and all the other top-level executives in order, to build and implement an effective financial and strategic plan for the organization. As a result, the strategic and financial plans must be aligned with the organization 's mission and/or values. It is widely known that the ultimate accomplishment for the CEO is to drive its organization towards achieving the goals set by the organization. Therefore, it is important that the CEO is an effective leader and has a substantial amount of knowledge regarding management and finances. In order, for any organization to continue services the organization must have an established capital allocation process. The purpose of this paper is to discuss an interview with a CEO regarding their organization 's capital allocation process.

Leadership comes in many different forms, both on an individual basis and also dependent on the company or industry. This essay will discuss the leadership qualities and characteristics of three strong, yet different, Chief Executive Officers. From pharmaceutical to technology and to fashion, the focus is consistently on growing the business and making money, but the targets for success change. Summarizing a Chief Executive Officer’s role is simple: they need to make the tough decisions.

Although schooling is extremely important it is not the only thing people need in order to become a company’s chief executive. There are many skills that are helpful to have in this particular career. A person must be organized because of all the planning they will have to be doing, have patience due to the stressful obstacles that will surely be in the way, which ties in directly with problem solving. Also, they would be dealing with a lot of people so speaking skills and communication is something that they can definitely not struggle with. The abilities a chief executive must obtain are written expression, speech clarity and recognition, written composition and deductive reasoning, and oral comprehension (O-Net). All of which will help move a person move ahead of competitive peers.

The company that I am going to analyse is Recce Ltd which is listed in the Australian Stock Exchange. It specializes in manufacture and development of anti cancer drugs and antibiotics for human use. The company offers its investors with added security of multiple product opportunities.The management of Recce Ltd is included of Chief Financial Officer who make financial decisions on behalf of the shareholders. This is to ensure that the company maximizes shareholder equity. Hence the position of a CFO cannot be over highlighted in the modern world(Abell, 2000). The existence of poor management, particularly financial mismanagement can run down a big company therefore there needs to be a Chief finance officer who is a certified professional who make financial decisions on behalf of the company.