The CFO role has evolved, and companies are seeking finance leaders with diverse backgrounds. Reporting CFOs, who handle financial reporting and compliance, remain in high demand, but modern CFOs need broader business knowledge and operational experience.
The debate over whether a CPA or an MBA is more valuable for a CFO position continues. However, there’s a growing trend of companies seeking CFOs with finance or investment banking backgrounds, combined with experience in operations, leadership, and strategy.
Shawn Cole, president of Cowen Partners, notes that reporting CFOs are still in high demand due to the need for financial stability within companies. However, modern CFOs who can drive company strategy and lead operational efforts are becoming increasingly important.
Khozema Shipchandler, CEO of Twilio, transitioned from CFO to COO and eventually became CEO after acquiring operational experience. Cole emphasizes that having a strong chief accounting officer (CAO) or controller is crucial for companies seeking CFOs with an operational background.
The Federal Reserve’s decision to slash interest rates by a quarter-point has sent mixed signals about future policy changes. The Fed’s “dot plot” projects reduced expected rate cuts in 2025, but experts caution that the election’s impact on economic growth and policy decisions remains uncertain.
As companies navigate these complexities, J.P. Morgan Wealth Management’s 2025 outlook report highlights key takeaways, including easing global policy, accelerating capital investment, and understanding election impacts.
Source: https://fortune.com/2024/12/19/cfo-best-profile-both-accounting-operational-experience-search-expert