Thesis: Disadvantages of CFO becoming CEO

Sample Thesis Paper

The disadvantage of promoting a CFO to a CEO is that he/she may be finance oriented, have a narrow focus and be unable to see the wider ramifications of their decisions. He/she might not have people skills or may not have an interest or a good understanding of the company’s products. General Motors’ and Allied Signal’s CEO are examples of CFOs who failed in their role as CEO (Picker, 1989).

Finance departments may be one of, but, not necessarily the only place to train future CEOs. Other than having a strong financial background a successful CEO requires having a thorough understanding and experience of the company’s product and operations. They must have experience in managing various businesses and must have the emotional stability to deal with vast range of issues and personalities. They must have leadership skills, people skills and the intuition to pick team members and create a suitable working environment. Good communication skills are also an essential requirement (Picker, 1989), (Durfee, 2005). Finance departments must give their executives the opportunities to develop the skills and experience required for CEOs so they may successfully step up to the position.

P =  S/(1+i)n

Where P = Present Value
S = Future Sum after n periods
i = Interest rate per period
n = Number of periods

Present Value of Account A = 4700/(1+0.038)1
= $4,527.94

Present Value of Account B = 7900/(1+0.038)2
= $7,332.17

Present Value of Account A & B = $11,860.11

Please order custom thesis paper, dissertation, term paper, research paper, essay, book report, case study from the Order Now page.