The pressures of a Finance Director

Source: Technology Digital

Date :11/28/2007 11:17:41 AM

Which is the toughest role on the Board? Of course you think it’s yours, but let’s ask whether the FD isn’t in a uniquely difficult place when there’s a conflict of interest

Some might say the Chairman has the hardest job, often finding him (or her) self highly visible in public companies, but not often full-time. Strategy is recommended by the executive but approved by the board. The best chairs have a multiplicity of business and interpersonal skills and experience. When things go wrong, they may find themselves in the firing line. Ultimately they lead accountability for shareholder value and have the final say on ‘hire and fire’ decisions.

What about the Chief Executive Officer? The leader of the executive team with daily accountability for performance. Having no departmental brief can be good or bad news. The skills should be similar to those of the chair. When things go badly wrong, the CEO may fall on his or her sword.

Accountability

The external director? With the panoply of corporate governance regulations and legislation, the role of the external director has never been more wide-ranging or demanding. The part-time non-executive director needs information to be answerable to the owners of the business. There are concerns at increasing workloads, higher personal risk and inadequate remuneration.

Or is it the Finance Director?

Whether in public or private companies, the FD may have the toughest role of all. Why? Because they can operate in that all important space between the devil and the deep blue sea...

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