IN CHAPTER 8 WE introduced the CFO Relationship Map (see Figure 8.1). The map is a representation of the relationships a CFO has. This chapter deals with the relationships CFOs have with the people they work for, including the CEO, the Board of Directors of the company, as well as the company's investors (or owners).
The CEO is the person whom the CFO most often reports to, but there can be exceptions. In some circumstances, the CFO could report to someone who reports to the CEO. This person would usually have the title of Chief Operating Officer or President. The CEO may or may not sit on the Board of Directors. When sitting on the board, the CEO may also be the Chairman of the Board, as well. In some companies, the CEO is not only the person in charge of the management of the company; he may own a significant portion of the company, as well.
In essence, the CEO role scales from one end where the individual has solely a management role, to the other end where the CEO is the chief manager of the business as well as the owner. The latter case is more likely in an owner-managed business, which tends to be smaller in size and scope than a business with a professional manager in the CEO role.
This chapter discusses the CFO's relationship with a CEO, board, and investors in a situation where the roles ...