VideoExtra homework by candidates, including interviews with internal sources from junior finance staff to heads of key operating units, is prolonging CFO searches by up to three weeks, says executive recruiter Richard Dowd of Dowd Associates. Of the candidates his firm is talking to right now, he observes, "I don't want to say they're scared, but they don't want to get it wrong. It's a learning experience. Everyone says, 'I should have done this 10 years ago.'"
5. Guilt By Association
If you've had to explain to the neighbors lately that you don't capitalize expenses the same way Scott Sullivan did, well, that might seem like the limit. But now, with CFOs singled out by the Sarbanes-Oxley Act to sign ethics codes, you might start taking this personally. Don't. "I think it's reflective of the publicity given to misconduct by people in finance and accounting--that's where the scandals have been," says attorney David Cifrino of McDermott, Will & Emery.
How to shake the stigma? Stay close to those you believe in. "Times like these," notes Tickets.com CFO Eric Bauer, "make having trust and confidence in the people around you even more important."
Career Perils
What would be the scariest outcome if your company were next to fail because of accounting fraud?
- Going to jail
- Losing your life savings
- Losing your family's trust
- Getting fired and carrying the stigma
In light of the heightened CFO liabilities, what steps have you taken to protect your personal assets?
- Increased D&O insurance limits or broadened policy
- Transferred assets to spouse or relative, or found other "shelter" for them
- Rewritten or demanded employee contract
- All of the above
- None. I don't believe I face any increased exposure
Which of the following events represents the biggest threat to a CFO's job?
- A restatement
- An earnings warning
- A shareholder's lawsuit
- A massive layoff
- A corporate restructuring
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