| Q. |
How should the CFO be assisting the board to add to shareholder value? |
| A. |
The CFO needs to assemble at team that can deliver a full range of financial services. This team needs to facilitate performance and growth, identify opportunities, ensure control and give the board and the CEO confidence that there will be no hidden surprises or governance issues. |
| Q. |
What role do you see the CFO playing is assisting the board with setting the strategic direction of the organisation? |
| A. |
The short answer is the CFO has to exercise the discipline to ensure the company focuses on growth opportunities that will create the greatest shareholder value and that are reinforced by the broad capabilities of the company. |
| Q. |
What are some of the strengths you would expect in a good CFO? |
| A. |
Good financial wisdom - based on expertise, a clear knowledge of the law and of accounting standards, a deep appreciation of good corporate governance requirements, of capital markets - and good interpersonal skills. The CFO also needs to have the ability to sense under performance and danger before it emerges in the numbers. |
| Q. |
Would you ever expect the CFO to disagree with the CEO at a board meeting? Is this a healthy / unhealthy situation? |
| A. |
The short answer is no and it is unhealthy. Any issues should be resolved beforehand. The CFO should be able to demonstrate to other directors that the strengths and weaknesses of any issue have been addressed and the right balance of view determined. |
| Q. |
What are the critical factors which underpin the relationship between the board and the CFO? |
| A. |
Confidence in one another, professionalism, good interpersonal skills and focus. |
| Q. |
Does your board have any particular approaches to assist the CFO in their role? |
| A. |
We seek to engage our CFO, as with all senior executives in all major issues. We seek to facilitate staffing the CFOs area effectively and professionally. We seek to ensure the CFO has a close working relationship with the risk managers and the audit committee, and we assign the CFO special tasks. |
| Q. |
Should the CFO be on the board? |
| A. |
In my view generally no, but it is a horses for courses matter. I believe in any case the CFO should attend board meetings. If the CFO is in line to be the CEO, maybe he should be on the board. Companies with a mix of both executives and independents on the board should include the CFO as one of the executives on the board but, I think the world is moving towards having more independents on boards and I support that. |
