FEI Weekly

November 21, 2019

Why CFOs should get that board seat, the Iron Accountant and keys to employee retention.

Better CFOs Make Better Directors

WSJ

Companies in which a CFO also serves as an outside board director saw 21% fewer financial reporting misstatements over a 12-year period than at companies in which the CFO didn’t, according to research to be published in the journal Accounting Horizons. The study argues that companies should encourage their CFOs to join outside boards and that CFOs that come from well-managed businesses can bring that experience to their directorships.

Agility is Key to Leadership

Marketwatch

Financial leaders involved in the complex global economic and financial environment-- with its rapid pace of change and unexpected disruptions -- have the same challenges as top corporate leaders and military commanders. In managing portfolios and balance sheets, they, too, need to quickly recognize threats and opportunities. The key is agility, but there has been no common understanding of what it means, or of what it takes for an organization to be agile.

I Am Iron Man… and an Accountant

Forbes

Data shows that AI and automation are like ruthless villains coming for accounting jobs. But, accounting professionals of the future won’t be robots; they’ll be talented people who use this technology to their advantage. AI and automation can be the accountant’s powerful exoskeleton. When we leverage this technology, we can do our jobs with greater strength, speed, agility and endurance.

Climate Needs Corporate Strategy

Knowledge@Wharton

Many different actors are setting the agenda for climate change action, but not the key company strategists. Functions and departments other than strategists often set the agenda for the executive team on what to do about the climate. There are several reasons why strategists in corporations may not be driving their climate change agendas, and there are corresponding initiatives they might undertake to redress the situation.

Move Them Up Or Watch Them Move Out

HR Dive

Employees who change jobs internally, either in a lateral move or a promotion, generally remain on board longer than those who stay in the same position. Employees who are promoted have a 70% chance of staying onboard; those who made a lateral move have a 62% chance of staying, and those who remained in their current position have a 45% chance of remaining. Data also showed that companies with highly rated management teams have greater retention rates.