Cfo to Ceo

Module 1 Case Assignment 2

The concept of moving corporate finance officers (CFO) into the corporate executive officer position (CEO) isn’t new. In today’s market it is ever more relevant to have a CEO with intimate knowledge of the financial status and future of the company. With market volatility at every turn in the recent years many companies are looking to their CFO for guidance and further grooming them for possible promotion. Yespartner.com com article states, “Various studies have estimated that former CFOs make up about 20 percent of current CEOs in the United States, with the majority of CEOs formerly serving in an operational role, such as COOs or directors.” Companies such as Miramax, Hewlett-Packard and Advanced Micro Devices all moved their CFO’s into the CEO position as an interim solution in order to fill gaps left by abruptly departing CEO’s. The selection alone should make all companies consider the background of a CFO for the CEO position.

I selected John R. Charman, CEO of Axis Capital Holding Ltd., who retired as the CEO and was replaced by the CFO, Albert Benchimol. My other selection was Hans Vestberg, CFO of Ericsson, promoted to CEO after Carl-Henric Svanberg left the company to become CEO of British Petroleum. Both men were current residing CFO’s for the companies and were promoted to the CEO position.

Hans Vestberg was a graduate of the University of Uppsala, Sweden in 1991, attaining his Business Administration degree. According to ericsson.com, “He is currently Chief Financial

Module 1 Case Assignment 2

Officer and Executive Vice President. Vestberg is also a member of the Board of Directors of Sony Ericsson as well as ST-Ericsson. He joined Ericsson in 1991 and has a broad international experience through assignments for more than ten years in three continents. Albert Benchimol was appointed CEO and Director effective January 1, 2012. Mr. Benchimol joined the Company as Executive Vice President and Chief...