Job titles have different values at different organizations. Some leaders value job titles greatly, while others couldn’t care less. Some CEOs wear multiple hats, some CFOs do more than just finance, and other executives have titles that don’t fully encompass the tasks they perform daily.
For Michael Tannenbaum, chief operating officer of Brex, his journey up the ladder started with SoFi as chief revenue officer in 2016. With Brex, Tannenbaum served as CFO and chief business officer for nearly four and a half years before making the switch to COO in November 2021.
Now two years into his stint as COO, Tannenbaum describes what it’s like moving to a new C-suite role and what he thinks of corporate job titles.
The CFO to COO Change
“I think the thought process was more to make room for some of the people underneath me that I have been training up that I wanted to promote,” said Tannenbaum. “It was also a good move for me because at Brex the COO position is higher than the CFO position.”
According to Tannenbaum, balancing the retention of future leaders with your own title and work aspirations is something that every good leader must deal with in their career.
“When you have very good people below you, [one of] two things may happen,” Tannenbaum said. “They’ll either leave for the top job or get the top job at your company.” Tannenbaum said that the best talent want better titles, and more power, influence, and money. “As a leader, to keep those people happy, you must create career growth paths for them.”
The difference between a CFO and COO position can be stark. While Tannenbaum believes the CFO work description is clear-cut, his new role is not. As COO, Tannenbaum believes he has more flexibility, autonomy, and influence around different areas of the company than when he was leading finance.
“I think the hardest part of the CFO job is that it’s so clear what you’re supposed to do: manage the finances, share price, shareholder relations, budgeting, etc. As COO, it can be everything, or it can be nothing; it’s ambiguous.”
Tannenbaum believes that’s why many COOs have been promoted to the position.
“It’s a job that can mean different things at different companies, overseeing things like revenue [generation] to technology implementation, so I think that’s why many people who become COOs are brought on from within.” Having been with a company for a time, an internal candidate can often better grasp what the company needs out of a COO.
The Meaning of Titles
Many aspiring business executives work towards titles as goals. Tannenbaum, who has held four different executive titles at two companies so far in his career, believes a title carries weight in the workplace. Titles don’t necessarily change the essence of the work, but they do impact perceptions.
“I think people who say they don’t care about titles are those who have good titles,” said Tannenbaum. “The people who understand titles the most are founders because they’re founders,” he said.
“Founders are in a class of their own. It’s more than just a title when you’re a founder; it’s a status. And I think people who don’t have that class of status care about titles.”
“Sitting in my seat today, I’ve called myself many things with my team. Chief button officer, SVP of signature stamping, a bunch of fun stuff. But since I’ve been in positions like CFO throughout [my career], I’ve learned that titles are only important when your organization considers them important.”
“I think people who say they don’t care about titles are those who have good titles."
Michael Tannenbaum
COO, Brex
Tannenbaum compared it to fashion. “It’s like seeing a generic brand shirt next to a Dolce and Gabbana shirt. They’re both shirts, but one says more about the quality and expectations of the brand name.”
Managing Different Generations
Transitioning through multiple leadership positions has allowed Tannenbaum to manage many different kinds of people. In his mid-30s, Tannenbaum has been a leader of those younger and older than him. According to him, age is just one component of a person’s make-up that drives them to work.
“From my vantage point, in mostly technology companies with a younger workforce, [baby] boomers working for us aren’t there for the same reasons younger people are,” he said. “Some have made their money and are there for fun, so we must keep their jobs fun so they continue coming to work.”
“I've tried to understand people, specifically their circumstances,” Tannenbaum said. “I think transparency always solves a lot of these issues [because] If you're just upfront and direct with people, usually, they’re going to meet you there too.”