THE ROLE OF THE CHIEF FINANCIAL OFFICER
IN CORPORATE GOVERNANCE
HIGHLIGHTS FROM THE HAWKAMAH CORPORATE GOVERNANCE
FORUM WHICH WAS HELD ON THE 22 ND OF MAY 2013 AT
THE SECURITIES AND COMMODITIES AUTHORITY IN DUBAI.
Theories of corporate governance have a tendency to
overlook the role of the CFO. In real life, however, CFOs
play a fundamental role in the governance of companies.
The CFO function can be characterized as the interface
between controls and strategic leadership, between
analyzing the past and planning and supporting future
business activities. The Hawkamah Corporate Governance
Forum gathered prominent practitioners to discuss
the role of the CFO, with a particular emphasis in the
Gulf region.
Panelists:
Asim Al Abbasi, CFO Economic Zones World
Frank Dangeard, Board member of Telenor
Rajesh Pareek, CFO, Dubai International Financial Center
V.P. Nagarajan, Executive Director, ETA Ascon & ETA Star
Moderator:
Francois de Montaudouin, Founder, Orbite Middle East.
What are core competencies needed for a successful CFO?
Frank Dangeard “In my view, a CFO does not have to
be a financial expert, but a good CFO needs to be a good
manager to manage a large team of experts; have very
good judgment... and be right on the orders of magnitude;
and be capable of inspiring trust because of the number of
stakeholders that he is involved with. As a shareholder, a
board member, and a CEO, I need to trust him.”
Asim Al Abbasi “Post-2008, the environment has changed
a lot. Prior to 2008, in FTSE 100 companies, less than
40% of CEOs or managing directors were from a financial
background; but today it’s more than 51%. Now, more than
80% of board members come from a financial background,
so in the eyes of shareholders and investors there is some
merit to coming from a financial background.”
What is the present role of the CFO in corporate governance
in Middle East and how has it changed since 2007?
Rajesh Pareek “The landscape of the CFO has changed
significantly in the past few years given that it is not
business as usual. Today’s CFO needs to deal with new
realities, the abnormal, if you will, and on a real time basis
in everyday tasks. What comes out after the crisis is that the
CFO needs to step up and make the organization aware that
life is not normal and manage the process effectively for
all stakeholders.”
V.P. Nagarajan “The perception of “what the CFO is” was
not properly evaluated until after 2007. You’ve seen the
financials that have taken place for the kind of projects;
they were all financed at prices that today people cannot
The Role of the Chief Financial Officer in Corporate Governance
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