The CFO-to-CEO Journey, Bank Stress Test Results, and Medcor CFO Mark Smolenski

“And so with the sunshine and the great bursts of leaves growing on the trees, just as things grow in fast movies, I had that familiar conviction that life was beginning over again with the summer.” — F. Scott Fitzgerald

The kids are out of school, summertime is here, and Q3 is on the doorstep. Accompanied by PTO and summer Fridays, the next few months come with what could be the most crucial economic moments of 2023 thus far. Despite the Fed’s efforts, inflation now appears to be entrenched within the global economy and, combined with Q2’s financial woes in the banking system, financial leaders note the world economy is at a critical juncture.

However, both in recent data and in conversations with CFOs, we’ve learned the prioritization of work-life balance for all is paramount for long-term organizational success. Finance leaders who focus on controlling what they can control, in a way that allows themselves and their teams the ability to be productive with autonomy, are putting themselves in the best position.

Despite most executives not believing a recession will occur this year, the idea of employee well-being should be top-of-mind, regardless of speculation about the global economy and its impact on business. If not for the possibility of tough times ahead, a focus on ensuring employee satisfaction, demeanor, and well-being right now can be looked at as an investment in future productivity — as the end of the year and the crunch it brings is already closer than it is further.

Part 1: Duke University Data and the CFO-to-CEO Transition

This week, Duke University and the Federal Reserve Banks of Richmond and Atlanta's Q2 2023 CFO survey comes out. In Q1, findings revealed that access to capital and CFOs' ability to invest in large organizational purchases were most crucial. (6/28)

Also, reporter Adam Zaki discusses the CFO-to-CEO journey with Howard Katzenberg, formerly the CFO of OnDeck and BetterMortgage, and now a founder and CEO of his fintech, Glean.AI. Katzenberg’s candidness about learning on the job, understanding and valuing the proper KPIs, and navigating growth provide value to finance chiefs who aspire to one day build their own companies and be their own boss. (6/29)

Part 2: Economic Calendar

Monday — The AICPA & CIMA and the Center for Audit Quality host a late-afternoon event (4:15 p.m. Eastern) to discuss the upcoming launch of the IFRS Sustainability Disclosure Standard. The virtual event, broadcast from the New York Stock Exchange, is for accounting, finance, and audit/assurance professionals as well as investor relations professionals and sustainability professionals in the U.S. and abroad.

Tuesday — The Conference Board releases its U.S. consumer confidence index for June. Economists expect an uptick to 104 from May’s 102.23 reading.

The S&P CoreLogic Case-Shiller home price index for 20 cities is released, expected to show another slight drop in May.

New home sales data for May are due from the Census Bureau and the U.S. Department of Housing and Urban Development.

The monthly advance report on durable goods manufacturers’ shipments, inventories, and orders is due from the Census Bureau.

Wednesday — English football club Manchester United holds its annual general meeting in Rochester, New York.

Federal Reserve Chair Jerome Powell speaks on a panel at the European Central Bank Forum on Central Banking in Sintra, Portugal.

EY hosts a webcast on what audit committees need to know for Q2 2023 at 3 p.m. Eastern time. Topics include the macroeconomic landscape, the latest SEC developments, and the evolution of internal audit functions. Visit here to register.

The Federal Reserve Board is scheduled to publish the results of its annual bank stress tests for banks with $100 billion or more in total consolidated assets. This year's scenario includes a severe global recession with heightened stress in commercial and residential real estate markets.

Thursday — The release of revised gross domestic product (GDP) for the first quarter is expected to show a bump up of three-tenths of a percentage point.

The weekly jobless claims data is due. Economists do not expect any jump in the tally of U.S. workers filing for unemployment benefits.

Friday — The personal consumption expenditures (PCE) price index — the data dump of the week — arrives courtesy of the U.S. Bureau of Economic Analysis. The big question is whether monthly and year-over-year PCE and core PCE (for May) will reveal any progress in the Fed’s fight against inflation.

Earnings this week — Carnival, Walgreens Boots Alliance, Korn/Ferry, LiveOne, General Mills, Paychex, Rite Aid, Acuity Brands, McCormick & Co., Simply Good Foods, Constellation Brands, Micron Technology, Concentrix, Worthington Industries, H.B. Fuller, NIKE, and others.

This weekend — The 110th Tour de France cycling race kicks off in Bilbao, Spain.

Part 3: The 6 a.m. CFO — Medcor's Mark Smolenski

The Medcor CFO shares what led to him training with the Navy Seals, and how he manages his workload by focuing on the five things that will most affect the company's value. (June 29)