Pros & Cons
A seasoned and experienced CFOs has what it takes to help an average company become high-performing, no doubt about it. On top of that CFOs' contribution to business strategy is key. They also play crucial roles in major transactions such as mergers & acquisitions. On the flip side:
When CEO is already a Board member he is the main representative of the management team. Adding a second executive director (possibly the CFO) may trigger concerns about Board independence. The audit committee oversees the financial statements of the company. As such they evaluate CFOs' performance in their role.
Having the CFO of the company sitting on the audit committee may impact the functioning of the committee. Appointing a CFO on the Board of their Company needs to be carefully thought out.
The Board should look at both the pros and cons before taking their decision. But there is still good news: -CFOs can make great additions to other companies’ boards. -former CFOs and retired CFOs can add tremendous value to the Board of their former companies -moreover with their financial expertise they are valued members to audit committees at other companies
Six boardroom trends in choosing board members
Communicate clearly what you bring to the (Board’s) table
Tips for winning a Boardroom seat as CFO
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