The job of the CFO has changed a lot in recent years. As keepers of metrics, they have had to adapt to an explosion of data and data analysis, as well as a proliferation of targets measuring environmental, social and financial outcomes. That was the subject of a lively dinner conversation, which was picked up last night in Chicago by the Fortune CFO Collaborative, in partnership with Workday and Deloitte. Most of the discussion was off-the-record. But Clem Johnson, president of search firm Crist/Kolder, made some opening remarks to stimulate the conversation. Some excerpts:
Whether the battle for financial talent will continue even as the economy slows:
“I certainly think we’ll be able to live with the pace of demand that we’ve seen for at least the next five years… The increasing sophistication, complexity and breadth of the CFO role need not tell this group how incredibly demanding the role has become. “
For background, who had to be CFO:
“Approximately 51% of acting CFOs have MBAs, while only 37% have CPAs… It’s certainly a sea change.”
About CFOs increasingly overseeing the technology function:
“I don’t have any stats on that, but I’d say at least 50% of them do.”
Separately, two new reports released today show that Latinos are rapidly increasing in their importance in the US economy, but not in their influence in boardrooms. The US Latino GDP Report, published by the Latino Donor Collaborative and Wells Fargo, calculates that the total economic output of US Latinos was $2.8 trillion in 2020 – slightly more than the UK’s GDP and up dramatically from 1, $7 trillion in 2010.
However, according to a study by the Latino Corporate Directors Association, Latinos remain drastically underrepresented on corporate boardrooms, with just 1% of board seats in Fortune 500 companies.
More news below. And if you’re wondering when the stock market will bottom, check out Lucy Brewster’s article on why it might do so twice.
Boeing has agreed to pay a $200 million penalty to settle SEC allegations that it misled investors about the 737 Max’s new flight control system that caused two fatal crashes. Former CEO Dennis Muilenburg pays $1 million. SEC Chairman Gary Gensler: “In times of crisis and tragedy, it is especially important that public companies and their executives provide full, fair and truthful disclosures to the markets. The Boeing Company and its former CEO… failed to fulfill this most fundamental obligation.” financial times
The government of new British Prime Minister Liz Truss has cut the top tax rate from 45% to 40% and the basic tax rate from 20% to 19%. Chancellor Kwasi Kwarteng also reversed a proposed increase in corporate tax and a cap on banker bonuses that the UK was required to apply ahead of Brexit under EU rules. Truss and Kwarteng insist all of this will boost growth, but some economists expect the moves will prove inflationary at pretty much the worst possible time. In particular, the package is not labeled as a budget, meaning the government can escape scrutiny by the independent Budget Responsibility Bureau. BBC
Having just bailed out energy giant Uniper to keep it from going under, the federal government is reportedly now in talks with many regional state-owned utilities to help them weather sky-high natural gas prices. The municipal utilities could need tens of billions of euros to stay afloat. Surviving Putin’s gas pressure is proving very, very expensive. Reuters
ALL AROUND THE WATER COOLER
Don’t celebrate yet: the end of the pandemic is “still a long way away,” says WHO boss Erin Prater
YouTube is trying to dethrone TikTok by paying creators for shorts videos. That’s why the biggest stars of the platforms are excited – and skeptical, by Alexandra Sternlicht
The corner office disappears. At his place? Executive jobs, by Paolo Confino
Research Affiliates has comprehensive new investment advice: Avoid Yesterday’s Winners and Embrace These Three Types of “Losers” in the Stock Markets That Can Return 8-12% a Year, by Shawn Tully
Putin applied pressure from all sides as Russians protested the draft, while nationalists turned on its head the “stupidity” of Steve Mollman’s Ukraine prisoner swap
This edition of CEO Daily was edited by David Meyer.
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