Fin301 Case Assignment Essay

1005 Words Jul 21st, 2012 5 Pages
TUI UNIVERSITY
Module I: Case Assignment
FIN301: Principles of Finance
October 31, 2011

Introduction

For the following Case Assignment, I will investigate if the finance departments are the best place to train future CEO’s. In addition, I will include a discussion of the pros and cons of hiring a CFO to be CEO. Also, I will provide two actual examples of CFO’s of publicly-traded companies who became CEO’s of publicly-traded companies within the past 5 years. Furthermore, I will research if those individuals have a CPA and/or CFA designations.

I. Do you think finance departments are the best place to train future CEOs? Include a discussion of both the pros and cons of hiring a CFO to be CEO. Try to cite at least three
…show more content…
(Source: ihaonline.org). In contrast, the CEO position requires personal qualities that are not developed in the finance departments as to personal charisma, communication skills, and passion. (Source: allbusiness.com). Furthermore, in a finance department a person learns how to avoid conflicts, while a CEO actually uses these conflicts. (Source: asiaone.com).

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). On the other hand, the cons of hiring a CFO to be a CEO would be that the person would not exude great energy, nor would be highly motivated. The person would be more prone to turn away from open competition, and would not accept criticism. Specifically, the person would stick to traditional markets and products and will not seek for new ideas and innovation as these can be risky, foregoing opportunities. Therefore, the

More about Fin301 Case Assignment Essay

Open Document