Ash Mehta speaks at Cityzone on the FD - NED relationships

Ash Mehta, CEO of Orchard Growth Partners spoke earlier today at a NED Forum held by Cityzone/Directorzone. The speech discussed the relationship between Finance Directors and Non Executive Directors at board level.

The trend during the 90’s was for the CFO to be viewed increasingly as a business partner to the CEO. This seemed, like many trends, to emanate from the US in part perhaps because CFO roles were increasingly being filled by MBAs rather than CPAs and the relentless drive to meet quarterly results expectations. The trend seemed to stretch to the UK eventhough an accountancy qualification in the UK is held in higher esteem than a CPA is in the US.

This trend seems to have been arrested in part by Enron/Worldcom/SOX etc  and the greater focus on controls and reporting and the CFO role now containing a much higher element of financial basics and compliance than before.

• Has this meant though that the CFO is less of a business partner? Are the two activities compatible or desirable in a single role?
• Does this mean that the CFO should be slightly detached or at least slightly independent from the CEO in the CFO role?
• Despite being an executive should the NEDs expect a more independent assessment of the business from the CFO compared to the CEO?
• What does this mean for the CFO/NED relationship?
• How should NEDs best use their relationship with the CFO for good governance, company performance and to protect themselves in these litigious times?

For further information see the Cityzone website.

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