CEO and CFO

How often should a CFO speak to the board? 9 CEO and CFOs shared their opinion

Written by Renata Taunay
Renata is Content Marketer at Rydoo.

A good alignment between the CFO and the company’s board of directors and especially with the CEO, is fundamental to the success of any company.  But what should this relationship be like? How often should they be in contact? How are companies around the world handling this partnership? 

We talked to 9 CEO and CFOs from different companies and countries and asked them “How often should a CFO speak with the board?”.  Here are their answers:

Ricardo Amaral - CEO of R11

Ricardo Amaral   

CEO of R11 Travel – R11 Travel – Exclusive Distributor of Royal Caribbean Cruises in Brazil 

“The CFO’s information is fundamental to the board and should be heard from the source whenever it’s appropriate. A strong synchronization between the CEO and the CFO should ensure the compilation and presentation of current results and all investment, forecast and budget details. At R11 Travel the contact is almost daily or at least every other day, either verbally or in person and informal or formal fundamental reports in specific meetings.”       

Roberta Rosenburg - CFO of Husqvarna

Roberta Rosenburg  

CFO  of Husqvarna Latin America

“The CFO should speak to the board of directors daily or whenever possible. We cannot wait to align the themes and communication, it’s a fundamental factor for a company.”

Alexandre Matte - VP of T-Systems

Alexandre Matte 

VP and Board Member of T-Systems Brasil

“Nowadays this sync has to occur at least fortnightly. The CFO has a fundamental role in helping to make viable ways to reduce costs, use new technologies, search for tax benefits and strong cash management. The integration and alignment of the company’s board are fundamental to its success.” 

Sergio Stelmach - CFO of CFIK

Sergio Stelmach 

CFO of CFIK

“I believe that the communication of a CFO with the board of directors and the president of the company should be daily. Reports, facts, situations, insights and comments of the CFO, which is linked to the company’s daily results, should be addressed every day to the board. This way, actions and decisions are taken quickly, always aiming at leveraging the results.”

Want to have more insights from the market leaders? Check out the story of this CEO who reinvented his expense management process

Rita Piçarra - CFO of Microsoft Portugal

Rita Piçarra 

CFO of Microsoft Portugal 

“Of course the CFO has to talk to the board of directors at least once a month and bring up the subject ‘results and closing of the month’. But I talk a lot more! I talk to them more often because the CFO has a much broader role than that.” 

Claudio Starec - CEO of Certifica Portugal

Claudio Starec

CEO of Certifica Portugal

“This will vary greatly depending on 3 factors:
1. Culture of the organization; 
2. Profile of the manager;
3. Competitive environment.

In my opinion, you should meet at least 2 times a week. At Certifica we have multiple meetings each week.”

Nayab Yusuf Siddiqi - CFO of Rezy360

Nayab Yusuf Siddiqi 

CFO of REZY360 Inc 

“In my experience and opinion, the CFO should work very closely with the board. Most of the time the value a CFO can bring to the table in terms of long and short term financial vision, the quality of processes and systems and the quality of revenue is something that a visionary board should value. One of the key topics of interest for any board is the financial and non-financial value the company is creating for its shareholders. An effective CFO, being the owner of financial information and responsible for the financial stewardship of an organization 

can very easily coordinate with the board to achieve their vision and help formulate practical strategies.”  

Sebastien Marchon - CEO of Rydoo

Sebastien Marchon 

CEO of Rydoo 

There is no straight answer to this question. Communication between the CFO and the board can and should take place several times per day in intense periods, for example, crisis periods or strong expansion ones. Business scenarios must be built, modified, challenged and strengthened on an on-going basis. We need to collect data and be able to quickly and precisely quantify the impact of the decision options we have.

The communication has to be as quick and fluid as possible to optimize the decision-making process (taking the right decision within the right time frame) and make sure to get a full alignment at C-level and at the board of directors level whenever appropriate.

But, of course, the communication between the CFO and the board can and should also be much less frequent in “business as usual” times. Having said that, interactions between the CFO and the other board members go far beyond the pure financial reporting and quantifications. The CFO is expected to take part in all major business decisions to help the team evaluate the pros and cons, risks and opportunities that are on the table. Therefore, it is critical for a CFO to build a super-strong knowledge on the company products, marketing, sales processes, operations and even on the company HR strategy. And this knowledge comes from the on-going interaction with the board members and their teams. The CFO isn’t a “controller” in his/her ivory tower. He/she is among the teams, interacting constantly with them, in order to be in a position to play a strategic advisory role to the company’s C-suit.”

Karl Sousa - CFO da Phillip Morris International

Karl Sousa  

CFO of Phillip Morris International 

“My opinion is that the CFO is the CEO’s right arm and as such has to be in constant contact with the CEO. It is very important that they are completely aligned, so the actions of the company are coherent and made with maximum agility.”

Originally published 2020-08-28 , modified 2020-11-10

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