CEOs want their CFOs to become astrologers: survey

Today’s Chief Executive officers (CEOs) want their Chief Financial Officers (CFOs) to become the company’s astrologers who can predict the future and not a coroner doing the postmortem, a recent survey revealed.

The survey which carried out based on 50 CEOs by MTI Corporate Finance, an international consultancy, had further revealed those CEOs have called their CFOs to move away from being mere bean counters and to become business partners with a more strategic view.

“I want my CFO to be like an astrologer who looks ahead. I don’t want a coroner who comes back and does the pos tmortem,” one CEO has told the survey team.

MTI CFO Forum held recently however highlighted that unlike in the past, the CFO’s job is now becoming highly vulnerable with no legislators’ protection available when his predictions go wrong.

“I think there is no legal protection available,” Chief Financial Officer Seylan Bank PLC Ramesh Jayasekara told a panel discussion.

Meanwhile the survey of 100 CFOs have revealed that 64 percent of them wanted direct reporting links to the board bypassing the CEO while only 27 percent did not see the need to do so. The balance 8 percent however were undecided.

The CFOs who have opted direct access to the board have felt that they need more control and independence. “We want to challenge CEO’s commercially-unviable projects,” some CFOs were quoted as saying. Explaining the reasons why this question was asked from today’s CFOs, Chief Executive MTI Consulting Hilmy Cader said they thought it was necessary to have an independent direct reporting line to the board, given the increasing amount of white collar crimes that are taking place. Under existing corporate governance structures, the CFO reports to the CEO unless the CFO is a board member.

However interestingly one CFO was quoted as saying, “The board is quarterly but I can’t live with this guy (CEO) daily”.

Meanwhile Director/ CFO - Diesel & Motor Engineering PLC Suresh Gooneratne argued that this might undermine the integrity of the CEO. PricewaterhouseCoopers Sujeewa Mudalige said CFO should not report to the board directly but to the CEO.

“I, as an independent non-executive director, will feel very uncomfortable when the CFO reports to me. And it is completely unacceptable. And I also wouldn’t be as the Chairman of the Audit Committee if that happens.” (DK)