The Next Wave

The elevation of the CFO has been fueled by a long list of finance luminaries, including General Electric's Dennis Dammerman, Merck's Judy Lewent, Hilton's Steve Bollenbach, and Tracinda's Jerry York. Curious about who the next finance leaders might be, we asked a group of well-informed observers which members of the 40-and-under generation they think are the most promising. This is arguably an arbitrary distinction; as one CFO notes, "the new generation of finance executives will be more a matter of mind and spirit than of chronological age."

Yet, despite their differences, the spirit of this group emerges clearly in the profiles that follow. They are articulate. They take risks. They are ambitious. They embrace new responsibilities. And almost all of them want to retire early.

Bob Calderoni
SVP & CFO, Avery Dennison Corp.
Age: 40 * Married, 3 children * BS, Fordham University * Job titles in past 10 years: 7; companies: 3 * Future plans: CEO

Bob Calderoni, CFO and senior vice president, finance, of Pasadena, California-based Avery Dennison, believes that the best way for young finance executives to get ahead is to put themselves into difficult situations. "That's where you learn the most," says Calderoni.

He should know. Between 1991 and 1994, Calderoni played a key role in resurrecting IBM from its highly publicized financial troubles. Then he leapt from the frying pan into the fire, with a stint at Apple Computer Inc., where he served as senior vice president and corporate controller.

Why would a young finance executive raising a family look for such challenges? "I viewed it as a no-risk situation," he says. "If they turned around, it would be a huge success. If not, I would have learned a lot and not lost much time. When you're 35, you have a lot of time."

Calderoni has made good use of his time so far. Joining IBM in 1984, he climbed quickly through a series of positions until he was named CFO of its $8 billion storage systems division in 1994. During the crisis, he worked closely with then-CFO Jerry York to restructure the company, taking a leadership role in "ratcheting back capital expenditures and R&D by 30 to 40 percent." In 1996, however, he "figured the CFO track would be faster outside IBM," and joined Apple. There, he says, "we had to reengineer every aspect of the corporation to make it viable." In short order, Calderoni and his team installed cost- cutting measures that led to results strong enough to power Apple into its next major development, the iMac.

At Avery Dennison, the drama has toned down a bit. But don't expect this to be Calderoni's last hurrah. Richard Wallman, CFO of Honeywell and former controller of IBM, says that Calderoni's perseverance in troubled times makes him stand out. Ultimately, he says, "I can see Bob being a CEO."

Maura Clark
EVP & CFO, Clark USA Inc.
Age: 40 * Single * BA, Queens University, Kingston, Ontario * Job titles in past 10 years: 3; companies: 3 * Future plans: CEO

When Maura Clark joined St. Louis­based Clark USA in 1995, it wasn't without reservations. After all, not only was she leaping from a $2 billion firm to a $4 billion firm, she was also switching from a Canadian business to a U.S. operation. In retrospect, however, "the decision is one of the best I've ever made," she says, "and it is a wonderful opportunity that many Canadians would jump at."

That opportunity was to complete a turnaround of the Fortune 500 petroleum-products company that had stalled in the wake of a failed initial public offering attempt. The IPO was intended to raise funds to purchase a Port Arthur, Texas-based refinery from Chevron Corp., a transaction that was subsequently completed with private equity financing. But Clark, who admits she is "drawn to difficult situations," was then able to further help the turnaround by raising more than $2 billion, primarily in the high-yield market; complete a $225 million refinery acquisition in Ohio; and finance a $1 billion Port Arthur upgrade project.

At Clark USA, she has "tried to develop the finance role as a facilitator of the business plan, instead of being a block." The strategy seems to be working. Brad Aldrich, Clark USA's executive vice president and chief operating officer, was initially impressed by Clark's ability to quickly grasp the refinery business, and says her approach to finance has led to a more effective finance team. "Maura's brought an open and honest approach to her peers and [direct] reports. We now have the most gratifying and effective management team, and she's a big reason for that," he says.

Christopher V. Dodds
CFO, The Charles Schwab Corp.
Age: 40 * Married, 2 children * MBA, University of Pittsburgh * Job titles in past 10 years: 5; companies: 1 * Future plans: Retire before 50

As captain and academic all-American point guard for the Clemson University basketball team, Chris Dodds called the plays for the 1980 squad that made it to the Final Eight. And he sees a lot of similarities between that role and his current position as executive vice president and CFO of San Francisco­based Charles Schwab, a post he has held since last July. Both, he says, require a strong leader who "knows how to treat everyone with respect, stays focused, delivers results, and really, really works hard at communicating."

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