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Tag: CFO

  • Social Capital: The Best CFOs in the Business Share How They Turn High Follower Counts Into Higher Valuations

    When you think of a chief financial officer, you’re probably imagining spreadsheets and revenue models rather than influencer collabs and viral videos. But for many CFOs these days, especially at consumer-facing companies, the importance of social media can’t be ignored. Brands are built, customers are wooed and sales are made on apps like TikTok and Instagram—platforms which number-crunchers ignore at their own peril.

    It’s notable, then, that of the five executives who landed on Inc.’s 2025 “Entrepreneurial CFOS of the Year” list, the three who hail from consumer product companies—Therabody’s Jim Allwein, Poppi’s Joshua Gittler and Nourish’s John McGrath—all have nuanced and clear-sighted perspectives on how social marketing meshes with their financial strategies.

    “There is a direct correlation between our social presence, our community mentions, and the commercial performance,” says Allwein, CFO at the wellness tech company Therabody, which has built a 1.1 million follower count on Instagram and a strong foothold among influencers while also securing double-digit revenue growth. Pointing to the company’s ongoing relationship with Buffalo Bills quarterback Josh Allen, he adds that the company sees “measurable spikes in sales and site visits and so forth [from] partnering with Josh.”

    Allwein cites an internal metric that Therabody tracks called ROMI, or “return on marketing investments,” as allowing the company to measure the upside of their social media strategies, and pivot strategies accordingly.

    “You can instantly see if there’s results … so we can then take monies and shift them around based on what’s performing well,” he explains. “That would even be at a SKU level or a search level. It’s pretty powerful, and we track that daily.”

    Gittler—CFO at the Gen Z-friendly, better-for-you soda startup Poppi, which PepsiCo acquired earlier this year for almost $2 billion—says that having a strong online presence has helped his company build a strong consumer base, too, which in turn leads to material upsides such as faster sales conversions or getting granted more shelf space by retailers.

    Part of his job as CFO, then, is to help budget for Poppi’s marketing efforts and then use KPIs to track success.

    “You can’t really assign perfectly a dollar value to one follow or one viral video, but you can have ways to measure the impact of those moments on the full funnel,” he says. At Poppi, that includes equating spikes in online chatter with pops in sales quantity, repeat purchases or household penetration. “It helps to strengthen our earned media flywheel, and it also helps to lower our reliance on paid spend because… those dollars are working so much harder for us.”

    So did Poppi’s strong online following—over 800,000 on TikTok, plus another 615,000 on Instagram—help close their multi-billion-dollar exit? Gittler demures, noting that he can’t speak for Pepsi, but says the acquisitive soda giant was complementary of Poppi’s social media efforts and that the brand’s pickup among Gen Z was a “meaningful” part of negotiations.

    For McGrath, CFO of the telehealth nutrition startup Nourish, social media offers a key pipeline for growing the emerging telehealth market. Somewhere between 150 and 200 million Americans would benefit from seeing a registered dietitian, but only a fraction of them are having their needs met, he explains; social media offers a way to reach them.

    It’s working, too. Nourish has 66,000 followers on Instagram and 45,000 on TikTok, which is more than you might expect of a health services company. That’s on top of hitting unicorn status earlier this year through a $70 million Series B.

    Nourish sets defined thresholds, McGrath explains, where the company looks to bring back a certain return on each marketing dollar it invests. That benchmark is based on a target 3x ratio of LTV to CAC, or lifetime value to customer acquisition cost, as well as payback period, or how long it takes to recoup marketing spend and break even. The marketing team’s mandate is to get as many patients as they can within that constraint, he adds.

    Of course, your social media presence will have a low ceiling if what you’re offering isn’t any good—so make sure you have a clear product value prop, the telehealth CFO advises.

    “If you’re solving an acute pain point in a way that is differentiated from the market, it’s kind of like [an] ‘If you build it, they will come’ type of thing,” he says. “So much of it comes down to just, build a great product and service and the rest will take care of itself. It’s less about focusing on engagement or followers for the sake of engagement or followers.”

    Allwein, Gittler and McGrath were recognized by Inc. as Best in Business Entrepreneurial CFOs of 2025 alongside Jonathan Carr of the cybersecurity firm Armis and Gina Mastantuono of the enterprise software company ServiceNow.

    The final deadline for the 2026 Inc. Regionals Awards is Friday, December 12, at 11:59 p.m. PT. Apply now.

    Brian Contreras

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  • Exclusive: $1 billion canned water brand Liquid Death names new CFO as it gears up for expansion | Fortune

    Good morning. Liquid Death has tapped Ricky Khetarpaul, a PepsiCo alum, as finance chief of the popular L.A.-based water startup that’s expanded into other beverages.

    “It’s a truly healthy beverage platform with a proven track record as an innovator across categories,” Khetarpaul told me. “I’ve been a big fan of Liquid Death.”

    Founded in 2017 by CEO Mike Cessario, Liquid Death is valued at approximately $1.4 billion and is known for its edgy, skeleton-stamped tallboy cans filled with water, sparkling water, or iced tea with fruit juice—not alcohol.

    In 2024, the company’s scanned sales were north of $300 million, and it has achieved a 380% CAGR since its 2019 launch. This month, Liquid Death announced a new distribution deal with Big Geyser in New York.

    Khetarpaul succeeds Karim Sadik-Khan, who joined Liquid Death as finance chief in June 2024. Sadik-Khan is currently the CFO at Spindrift, according to his LinkedIn profile.

    Before joining Liquid Death, Khetarpaul was the CFO of Health-Ade, a kombucha and gut-health soda brand. He previously served as North America CFO for Lavazza, spent over eight years in finance at PepsiCo, leading reporting, forecasting, and planning for a $5 billion beverage portfolio, and held leadership roles at Sabra Dipping Co. and Walgreens Boots Alliance.

    He noted that the biggest challenge for CPG (consumer packaged goods) brands is building strong consumer loyalty. “Even bigger brands I’ve worked with have struggled,” he said. “But in just a few years, Liquid Death has built one of the biggest fan bases in the beverage industry.”

    Strategic marketing

    According to a recent NCSolutions survey, half of Gen Zers said they are alcohol-free by choice, and 43% believe Gen Z is driving the “sober curious” movement. Gen Z and millennials account for over 70% of Liquid Death’s customers.

    Cessario, a former marketing executive, credits the company’s entertainment-first, social media-centric marketing for its strong appeal among young consumers. Liquid Death has 14.5 million followers across TikTok and Instagram.

    Khetarpaul sees marketing as a growth center, drawing on his own experience in sales and marketing at PepsiCo before moving into finance. “I view the CFO role as a growth driver, not just a traditional controller,” he said. “Liquid Death’s marketing converts brand awareness into sales; the company is very metrics-driven. We measure marketing investments both strategically and in terms of ROI, which is music to any CFO’s ears.”

    The brand has also run campaigns with celebrities and partners. For example, it recently launched a limited-edition Fruity Pebbles sparkling water called Cereal Criminal on Amazon. Liquid Death plans to enter the $23 billion energy drink market in 2026 with Liquid Death Sparkling Energy, which is naturally caffeinated from coffee beans rather than synthetic sources, Khetarpaul said.

    However, the segment is highly competitive, dominated by brands such as Red Bull and Monster. As CFO, Khetarpaul is set to play a key leadership role in helping Liquid Death become the “next true multi-category beverage brand,” Cessario said in a statement.

    Backed by a loyal fan base and an ambitious CFO, Liquid Death is ready to disrupt the beverage aisle—again.

    Sheryl Estrada
    sheryl.estrada@fortune.com

    Leaderboard

    Lydia Brown has been appointed CFO of Citrin Cooperman, a professional services provider for private, middle market businesses and high net-worth individuals, effective Oct. 13. Brown succeeds Larry Diamond, who will retire after three years of dedicated service as the firm’s CFO. Brown brings more than 30 years of experience in the professional services industry, including senior financial leadership roles across both private-equity-backed and publicly traded companies. Most recently, she served as CFO for HKA, a global consultancy.

    Craig Chamberlin was appointed EVP and CFO of Vertiv Holdings Co. (NYSE: VRT), a digital infrastructure company, effective Nov. 10. Chamberlin succeeds David Fallon, who previously announced his intention to retire from Vertiv and serve as a consultant to the company through Dec. 31. Chamberlin joins Vertiv from Wabtec Corporation, where he most recently served as group VP and CFO of the company’s transit segment.

    Big Deal

    The 2025 Fortune Most Powerful Women (MPW) Summit began on Monday in Washington, D.C., and continues through Wednesday. You can join us at MPW via livestream for the main stage sessions. View the agenda here.

    The MPW franchise started in 1998 with the publication of the first-ever Most Powerful Women in Business ranking. The response to this list made it clear that these trailblazing women needed a platform to come together and discuss the unique challenges they were facing. And so, Fortune MPW evolved into a community of leaders that gathered at invite-only events, such as the annual Summit. This year’s theme is “Leading in a Dynamic World.” 

    Going deeper

    The latest EY Global IPO Trends report found that in Q3 2025, global equity markets rebounded strongly, with major indices in the U.S., Asia, and Europe reaching new highs after months of pressure from tariffs, interest rate uncertainty, and debt concerns. The rally was driven by looser monetary policy and solid corporate earnings, according to the report.

    Overheard

    “Frankly, this thing that trade is dead is completely overstated. Trade is like water. You put [up an] obstacle, it goes around it.”

    —Kristalina Georgieva, head of the International Monetary Fund, said during the Fortune Most Powerful Women summit in Washington, D.C., on Monday. Georgieva downplayed any fears of a trade war but recognizes the world is becoming “foggier” and full of uncertainty. She said one of the biggest challenges comes from getting buy-in that cooperation is better than division: “We are in this one big boat. It is a rough sea. We’d better row together,” Fortune reported.

    Sheryl Estrada

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  • xAI hires former Morgan Stanley banker Anthony Armstrong as CFO | TechCrunch

    Elon Musk’s AI company, xAI, now has a new chief financial officer: Former Morgan Stanley banker Anthony Armstrong, the Financial Times reported, citing anonymous sources.

    Armstrong, who previously advised Musk during the Twitter deal, will oversee the finances of both xAI and X, which were merged in April, the report said. The former banker has been working with xAI for several weeks and was only recently appointed as CFO, the FT added.

    xAI has been without a CFO since its previous finance head, Mike Liberatore, left the company in July, and Armstrong’s appointment follows a slate of high-profile executive departures at both xAI and X.

    xAI’s general counsel, Robert Keele, left the company in August after a little more than a year on the job. Raghu Rao, a senior lawyer, also departed around the same time, and Igor Babuschkin, one of xAI’s co-founders, in August said he was leaving the company to launch his own VC firm dedicated to AI safety research. Linda Yaccarino, former CEO of X, also resigned in July.

    Armstrong will take over from X’s current CFO, Mahmoud Reza Banki, who is leaving the company, the FT reported.

    xAI did not immediately return a request for comment.

    Ram Iyer

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  • Orlando, Orange County push back on DOGE wasteful spending accusations

    548. SEE YOU GUYS THEN. SEE YOU THEN. TONY. ALL RIGHT. THE STATE DOSE TEAM CONTINUES TO TARGET WHAT THEY CALL WASTEFUL SPENDING BY CITIES AND COUNTIES. ORLANDO IS TAKING THE LATEST HIT FROM REPUBLICAN LEADERSHIP. BUT AS WESH TWO NEWS POLITICAL REPORTER GREG FOX EXPLAINS, THE STATE IS LEAVING OUT KEY INFORMATION. ROSES ARE RED, VIOLETS ARE BLUE. OUR PROPERTY TAXES ARE HIGH BECAUSE OF YOU. USING RHYME AND METER, REPUBLICAN CHIEF FINANCIAL OFFICER BLAISE INGOGLIA BLASTED SPENDING IN THE CITY OF ORLANDO DURING THE PAST TWO MONTHS, THE CFO AND STATE DOSAGE TEAM HAVE BEEN REVIEWING SPENDING IN THE CITY AND IN ORANGE COUNTY. THEY FLAGGED SEVERAL PROGRAMS, INCLUDING $460,000 SPENT COUNTING TREES, $150,000 SPENT ON ASSISTANCE FOR UNDOCUMENTED IMMIGRANTS, $67,500 OVER FIVE YEARS FOR HOT YOGA CLASSES, AND $6,000 ANNUALLY FOR A POET LAUREATE. THE PEOPLE KEEP ASKING, WHERE DOES IT GO? THE COFFERS RUN EMPTY, YET TAXES STILL GROW IN THE HALLS OF THE CITY. ONE LESSON IS CLEAR WASTEFUL SPENDING ECHOES YEAR AFTER YEAR. I CAUGHT UP WITH MAYOR BUDDY DYER AND HE SAYS THE CHIEF FINANCIAL OFFICER MAY HAVE WANTED TO DO A LITTLE MORE HOMEWORK BEFORE MAKING HIS REMARKS. IT’S ALL POLITICS. IT SHOULD BE BENEATH THEM. MAYOR DYER EXPLAINED THAT THE YOGA PROGRAM IS PART OF EMPLOYEE HEALTH AND WELLNESS, AND THE ASSERTION THAT THE CITY IS WASTING TAXPAYER MONEY. COUNTING TREES DOESN’T HOLD WATER. ACCORDING TO THE MAYOR, BECAUSE THE PROGRAM OF ENSURING THE HEALTH OF THE CITY’S TREE CANOPY ISN’T FUNDED WITH LOCAL TAX DOLLARS, STATE AND FEDERAL FUNDING. AND WE HAVE A TREE TRUST FUND WHERE IF YOU TAKE DOWN A TREE, YOU’VE GOT TO PAY INTO IT. SO NO GENERAL FUND RELATED TO THAT. SO THEY DIDN’T DIG VERY DEEP IN TERMS OF THEIR ANALYSIS AND CRITICIZING MONEY SPENT ON THE CITY’S POET LAUREATE. SEAN, WELCOME. DURING THE PAST FOUR YEARS, THE MAYOR POINTS OUT IT WAS MODELED AFTER THE STATE’S POET LAUREATE PROGRAM THAT’S BEEN AROUND FOR NEARLY A CENTURY, AND MONEY THAT GOES TO THE ORLANDO CENTER FOR JUSTICE TO ASSIST THOSE WITH IMMIGRATION CASES IS NOT FROM THE GENERAL FUND, BUT THROUGH GRANTS. RESPONDING TO CONTINUED CRITICISM FROM THE CFO ABOUT ORANGE COUNTY SPENDING, MAYOR JERRY DEMINGS RELEASED A STATEMENT SAYING ORANGE COUNTY TAKES ITS RESPONSIBILITY TO TAXPAYERS SERIOUSLY, AND WE STAND BY THE INVESTMENTS WE MAKE IN OUR COMMUNITY COVERING ORANGE COUNTY. GREG FOX, WESH TWO NEWS. THE STATE HAS GIVEN NO TIMETABLE ON WHEN THEY

    Orlando, Orange County push back on DOGE wasteful spending accusations

    Updated: 6:56 PM EDT Oct 2, 2025

    Editorial Standards ⓘ

    “Roses are red, violets are blue. Our property taxes are high because of you,” Florida Chief Financial Officer Blaise Ingoglia said during a Jacksonville news conference. The Republican used rhyme and meter to blast spending in the city of Orlando and Orange County, spending on programs that conservative leadership in Tallahassee considers wasteful and unnecessary. During the past two months, the CFO and state DOGE team have been reviewing spending in the city and county. Ingoglia flagged several programs in Orlando, including $460,000 spent “counting” trees, $150,000 spent on assistance for undocumented immigrants, $67,500 over five years for hot yoga classes and $6,000 annually for a poet laureate. Focusing on the poet laureate, Ingoglia said, “The people keep asking, where does it go? The coffers run empty, yet taxes still grow. In the halls of the city, one lesson is clear: wasteful spending echoes year after year.” WESH 2 News talked with Orlando Mayor Buddy Dyer, who said the CFO may not have done all the homework he should have before making his remarks, with Dyer adding, “It’s all politics. It should be beneath them.”Dyer explained that the yoga program is part of employee health and wellness, which is encouraged in cities and counties across the country. The assertion that the city is wasting taxpayer money counting trees doesn’t hold water, according to the mayor, because the program of ensuring the health of the city’s tree canopy isn’t funded with tax dollars, with Dyer adding, “That’s funded with state and federal grants. It is a State Department of Agriculture program that we’re doing, and we have a tree trust fund that, when you take down a tree, you have to pay into it. So there is no general fund in that. So they didn’t dig very deep in terms of their analysis.” Addressing the money spent on the city’s poet laureate, who has been Shawn Welcome during the past four years, the mayor points out that it was modeled after the state’s poet laureate program, that’s been around since 1927.It’s worth noting that the state does not pay a stipend to the poet laureate. Orlando had been paying less annually, but for the new poet laureate named this month, the annual stipend will amount to $6,000, up from $4,000 annually for Welcome. And money that goes to the Orlando Center for Justice, to assist those with immigration cases, is not from the general fund, but through grants. Responding to continued criticism from the CFO about Orange County spending, Mayor Jerry Demings released a statement saying, “Orange County takes its responsibility to taxpayers seriously, and we stand by the investments we make in our community.”

    ORANGE COUNTY, Fla. —

    “Roses are red, violets are blue. Our property taxes are high because of you,” Florida Chief Financial Officer Blaise Ingoglia said during a Jacksonville news conference.

    The Republican used rhyme and meter to blast spending in the city of Orlando and Orange County, spending on programs that conservative leadership in Tallahassee considers wasteful and unnecessary.

    During the past two months, the CFO and state DOGE team have been reviewing spending in the city and county.

    Ingoglia flagged several programs in Orlando, including $460,000 spent “counting” trees, $150,000 spent on assistance for undocumented immigrants, $67,500 over five years for hot yoga classes and $6,000 annually for a poet laureate.

    Focusing on the poet laureate, Ingoglia said, “The people keep asking, where does it go? The coffers run empty, yet taxes still grow. In the halls of the city, one lesson is clear: wasteful spending echoes year after year.”

    WESH 2 News talked with Orlando Mayor Buddy Dyer, who said the CFO may not have done all the homework he should have before making his remarks, with Dyer adding, “It’s all politics. It should be beneath them.”

    Dyer explained that the yoga program is part of employee health and wellness, which is encouraged in cities and counties across the country.

    The assertion that the city is wasting taxpayer money counting trees doesn’t hold water, according to the mayor, because the program of ensuring the health of the city’s tree canopy isn’t funded with tax dollars, with Dyer adding, “That’s funded with state and federal grants. It is a State Department of Agriculture program that we’re doing, and we have a tree trust fund that, when you take down a tree, you have to pay into it. So there is no general fund in that. So they didn’t dig very deep in terms of their analysis.”

    Addressing the money spent on the city’s poet laureate, who has been Shawn Welcome during the past four years, the mayor points out that it was modeled after the state’s poet laureate program, that’s been around since 1927.

    It’s worth noting that the state does not pay a stipend to the poet laureate. Orlando had been paying less annually, but for the new poet laureate named this month, the annual stipend will amount to $6,000, up from $4,000 annually for Welcome.

    And money that goes to the Orlando Center for Justice, to assist those with immigration cases, is not from the general fund, but through grants.

    Responding to continued criticism from the CFO about Orange County spending, Mayor Jerry Demings released a statement saying, “Orange County takes its responsibility to taxpayers seriously, and we stand by the investments we make in our community.”

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  • Snowflake tops Fortune Future 50, new CFO highlights AI leadership | Fortune

    Good morning. U.S. tech companies, particularly in software, have dominated the 2025 Fortune Future 50 list.

    Snowflake, a cloud-based data storage company, takes the top spot on the list released this morning, followed closely by data, analytics, and AI provider Databricks. Both companies are fueled by the rise of AI in business—their platforms enable organizations to unlock and activate their own data as the foundation for artificial intelligence. Rounding out the top five are Celonis, DataRobot, and Astera Labs.

    Since 2017, Fortune has partnered with the consulting firm BCG to publish the Future 50, an annual index of global companies, both publicly traded and venture-backed private firms, with the strongest prospects for above-average, long-term growth. The list highlights top scorers in “corporate vitality,” a measurable and manageable quality that reflects a company’s innate ability to expand.

    Snowflake is not only well-positioned for growth but also preparing for leadership changes. Earlier this month, the company announced that Brian Robins will become CFO on Sept. 22, succeeding Mike Scarpelli, who is retiring. Robins served as CFO of GitLab since 2020 and, before that, held CFO roles at Sisense, Cylance, AlienVault, and Verisign, a Nasdaq-listed company.

    “Snowflake is at the center of the AI revolution,” Robins said in a statement. “I am thrilled to be a part of this hyper-growth phase.” He said he’s committed to helping the company scale efficiently to achieve its vision.

    Sridhar Ramaswamy, CEO of Snowflake, echoed that sentiment: “We’re incredibly confident in our next chapter of growth with Brian taking the helm as our new chief financial officer. Brian’s deep commitment to operational rigor and long-term high growth aligns perfectly with Snowflake’s strategic direction.”

    Robins will be tasked with sustaining Snowflake’s momentum. For the quarter that ended July 31, the company reported earnings of 35 cents per share, nearly double from the same period last year. Revenue climbed 32% to $1.1 billion, surpassing estimates of $1.09 billion.

    With a new finance chief, rising demand for AI-powered solutions, and continued revenue growth, Snowflake is aiming to remain a dominant force. View the complete Fortune Future 50 list here.

    Sheryl Estrada
    sheryl.estrada@fortune.com

    Leaderboard

    Joshua Reed was appointed CFO of Alkermes plc (Nasdaq: ALKS), effective Sept. 15. Reed brings over 30 years of financial leadership experience. Most recently, he served as CFO of Omega Therapeutics, a then publicly traded biotechnology company. Before that, Reed was the CFO at Aldeyra Therapeutics. Earlier in his career, he spent more than a decade at Bristol Myers Squibb, culminating in his role as VP and head of finance operations for the U.S. and Puerto Rico.

    Travis T. Thomas, CFO of Ring Energy, Inc. (NYSE American: REI), has resigned effective immediately to pursue other opportunities. According to the company’s announcement, his resignation was not the result of any disagreement between Ring Energy and Thomas regarding financial, operational, policy, or governance matters. Rocky Kwon, currently VP of accounting, controller, and assistant treasurer, has been appointed interim CFO. The company has begun a search for a permanent replacement.

    Big Deal

    Americans’ trust in the responsible use of AI has improved since Gallup began measuring the topic in 2023, according to a newly released report. This year, about a third (31%) of Americans surveyed said they trust businesses to use AI responsibly—3% said “a lot,” and 28% said “somewhat.” In 2023, only 21% expressed trust in businesses’ use of AI.

    Still, skepticism remains. Forty-one percent of respondents this year said they do not trust businesses much when it comes to using AI responsibly, while 28% said they do not trust them at all.

    The findings come from the latest Bentley University–Gallup Business in Society survey, based on responses from 3,007 U.S. adults in a web-based poll.

    According to Gallup, the challenge businesses face as they deploy AI is clear: “They must not only demonstrate the technology’s benefits but also show, through transparent practices, that it will not come at the expense of workers or broader public trust.”

    Courtesy of Gallup

    Going deeper

    “Unconscious Uncoupling: CFO Business Partnering 2025” is a report by Datarails based on a survey of 240 U.S. heads of sales, marketing, HR, IT, customer service, and R&D departments regarding their relationships with CFOs. Although finance teams have evolved into strategic business partners, nearly all business executives (97%) still view their finance chief’s primary role as “limiting spending.”

     

    Overall, 51% of executives ranked poor communication as their biggest complaint in the relationship. IT executives reported having the strongest “business partner” relationship with the CFO’s office, according to the survey.

    “Without finance partnership, businesses will continue to lose significant opportunities to drive growth,” said Didi Gurfinkel, CEO and co-founder of Datarails.

     

    Overheard

    “In the same way that every company became a technology company, I think that every company will become an AI company.”

    —Robinhood CEO Vlad Tenev told David Rubenstein last week during an interview on Bloomberg Wealth.

    This is the web version of CFO Daily, a newsletter on the trends and individuals shaping corporate finance. Sign up for free.

    Sheryl Estrada

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  • AI consulting firm hits $1 billion, makes employees part owners

    Good morning. Retaining and engaging employees remains a core priority for many companies.

    For Synechron, this meant celebrating its $1 billion annual revenue milestone by making every employee a part owner. The private AI and tech consultancy recently announced its offering a universal equity grant to all 16,000 employees worldwide—each will receive $1,000 in restricted stock units (RSUs).

    Unlike typical performance- or tenure-based models, this RSU grant is equal for all employees, regardless of location or role. There’s no minimum tenure requirement for the award, which is granted to current employees only. The company maintains separate, performance-driven equity awards as well.

    Reaching $1 billion, bootstrapped and without outside investors, is a notable accomplishment, CEO and cofounder Faisal Husain told me. Founded in 2001, the once-small New York startup has grown over 24 years into a global player with offices in 21 countries.

    Leadership wanted a celebration of the milestone that reflected the company’s values, Husain said. After considering standard rewards like gift cards or gadgets, they chose a shared equity stake. “It’s the best form of appreciation,” he said.

    “We’ve all heard the stories—if you bought $1,000 of Amazon or Microsoft shares 20 years ago, it would be worth a lot today,” Husain told me. Synechron employees could have a similar opportunity. 

    Asked if an IPO is in Synechron’s future, he said it’s possible, but, for now, the focus is on growth, innovation, and helping clients through technology’s rapid changes. “We’ve kept the company privately held for 24 years,” Husain said. At some point, things may change, he added, “but we’re not in any rush.”

    Leadership sets the culture

    The grant ties directly to Husain’s leadership philosophy—it reflects a culture of transparency and inclusivity reinforced by regular town halls and a belief that everyone should share in the firm’s success, he said.

    I spoke with two Synechron employees. Roya Shahilow, chief of staff in London for a decade, recalled joining when revenue was just $300,000. “The $1 billion mark felt like a dream in the distance,” she said. “It’s a proud moment to have achieved that.”

    Annushree Chute, senior manager of immigration and travel in Pune, India, also with the company for 10 years, echoed that the excitement in the office was palpable when the news broke. Both credit the company’s supportive culture for their long tenures. “Connecting with everyone, from associates to the CEO, is very important,” Chute said. Shahilow added, “Granting these RSUs speaks volumes about our culture.”

    Every employee received a medallion as a physical symbol of their shares. Shahilow plans to frame hers; Chute will display hers on her desk.

    As CEO, Husain is both reflecting on this achievement and focused on future growth. “Now we have to chart a new path,” he said. “How do we go from $1 billion today to $10 billion? It’s my role to make sure we stay on the winning side.”

    Sheryl Estrada
    sheryl.estrada@fortune.com

    Leaderboard

    Inder M. Singh was appointed CFO and chief operating officer of IonQ (NYSE: IONQ), a quantum computing and networking provider, effective immediately. Singh succeeds Thomas Kramer, who will remain at IonQ in an advisory capacity for up to 60 days. Singh most recently served as CFO of Arm, a British semiconductor and software design company, where he oversaw the majority of its IPO. Singh previously held several leadership roles at Unisys, a global technology solutions company, culminating with his position as CFO. Before that, Singh led financial strategy for Cisco, one of the world’s largest networking companies, as its VP of corporate financial strategy and M&A.

    Samantha Rutty was appointed EVP and CFO at Myers Industries, Inc. (NYSE: MYE), a manufacturer, effective Sept. 22. Rutty brings to her new role more than two decades of finance leadership experience across global services and manufacturing companies. She joins Myers from The Brink’s Company, where she had served as VP and CFO of Brink’s North America since November 2022. Before that, Rutty spent 20 years with Eaton Corporation in a series of senior finance roles, including director of finance, eMobility.

    Big Deal

    The Labor Department released the August jobs report on Friday, showing U.S. employers added just 22,000 jobs as the labor market continued to cool. Hiring slowed from an upwardly revised 79,000 in July. The unemployment rate rose to 4.3%, the highest level since 2021. 

    The results are likely to heighten concerns at the Federal Reserve about labor market weakness, according to a note to clients from BofA Global Research. “There is now clearer evidence of deterioration in labor demand, not just supply,” BofA economists wrote. “Therefore, we are changing our Fed call to show two 25bp cuts this year, in September and December.”

    Jerome Powell’s current term as chair of the Federal Reserve is set to expire in May 2026. BofA economists maintain their view that the next Fed Chair will guide the Federal Open Market Committee in a more dovish direction. They now expect another 75bp of rate cuts under the new chair, aiming for a terminal rate of 3.00-3.25%.

    “We pencil those in for June, September, and December 2026,” the note says. “This raises our forecast of cumulative cuts by end-2026 from 100bp to 125bp.”

    On Tuesday, the Bureau of Labor Statistics will publish its preliminary payroll revision, which recalculates which recalculates employment numbers for the previous year using more comprehensive data, such as company payrolls. 

    Going deeper

    “Anthropic reaches $1.5 Billion settlement with authors in landmark copyright case” is a Fortune report by Beatrice Nolan. 

    From the report: “Anthropic agreed to pay authors around $3,000 per book for roughly 500,000 works, after it was accused of downloading millions of pirated texts from shadow libraries to train its large language model, Claude. As part of the deal, Anthropic will also destroy data it was accused of illegally acquiring. The fast-growing AI startup announced on Sept. 2 that it had just raised an additional $13 billion in new venture capital funding in a deal that valued the company at $183 billion.” Read the complete report here.

    Overheard

    “We’re actually seeing the human skills coming into premium.”

    —Kelly Monahan, managing director of the Upwork Research Institute, told Fortune in a recent interview regarding the use of AI-generated content. 

    Sheryl Estrada

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  • What empowers modern CFOs to lead with confidence and agility

    When Argyro Apostolou joined her family’s business, founded more than 40 years ago by her father, Isidoros Garifalakis, she didn’t step right into the C-suite. She started as a receptionist at the front desk, learning the business from the ground up. Today, she’s Chief Financial Officer (CFO) of Omega Industries (Omega), one of the largest suppliers of main-line railroad crossings in the United States.  

    Her journey reflects a new reality: today’s CFOs aren’t focused solely on financial oversight, they’re leading enterprise-wide transformation. Argyro exemplifies this evolution. With Microsoft Dynamics 365, she makes faster decisions and helps future-proof Omega for the road ahead.  

    From gut instinct to predictive insight: the data-driven CFO  

    “I’ve seen how dramatically finance has changed,” Argyro reflects. “Thirty years ago, technology was scary. We didn’t trust it. But over time, I’ve come to see it as one of our greatest allies.”  

    Argyro Apostolou, CFO Omega Industries, with a gradient background.

    At Omega, Microsoft Dynamics 365 has become foundational to how the business operates. With real-time data at her fingertips, Argyro and her team act with better speed and precision. “With Dynamics, we’re not just faster, we’re better. The insights are accurate, timely and actionable. We make decisions with confidence because the data backs us.”  

    That reliability was put to the test in September 2024, when Omega experienced a major cybersecurity incident that shut down its servers and network access. Thanks to Dynamics 365 Business Central, the team retained access to a full year of data and continued paying vendors, billing customers and tracking sales without interruption. Without a cloud-based system, the organization would have faced weeks of operational downtime while restoring on-premises data. Instead, its continuity was preserved, and recovery was swift.  

    This kind of resilience changes how Argyro leads. “I can spot risks early. I see patterns before they become problems. I act decisively, and more importantly, I now spend more time thinking ahead. I feel more energized than ever, allowing myself to dream bigger.”  

    Explore how connected data can empower your finance, sales, service and operations teams. Learn more about Microsoft Dynamics 365 Business Central, trusted by over 45,000 small and midsize businesses.  

    Business impact at a glance  

    Since adopting Dynamics 365, Omega’s finance team has accelerated operations, empowered employees and positioned the organization for future growth:  

    • Up to 50%-time savings on daily finance tasks  
    • 60% faster month-end close  
    • Improved forecasting and planning accuracy  
    • Faster response times to customer and executive inquiries  
    • Streamlined, cross-functional collaboration companywide  

    For Argyro, the impact of digital transformation goes beyond the numbers, it changes how people perform.  

    “When employees feel prepared and supported, they’re more confident. They collaborate better. They lead in their own roles.”  

    Before Dynamics 365, accessing project or sales data required help from multiple departments. Today, finance teams operate in a shared, secure cloud environment, where data is available instantly without bottlenecks or silos.  

    “Now, my team has the tools they need to do their jobs. And it shows in how they carry themselves, how they make decisions and in the quality of their work.”  

    That same readiness extends to the customer experience. For Argyro, data is the key to delivering service with consistency and care. “I can only have a satisfied customer if I’m prepared to serve them. And the only way I can be sure we’re prepared is by looking at the data. That’s how I know we have what we need to deliver.”  

    Discover more about Argyro and her team’s transformation in the full Omega case study.  

    Building a culture of confidence with technology    

    For leaders navigating digital transformation, Argyro offers a clear insight: the tech is only half the equation. 

    “Change management is just as important as the technology itself,” she explains. “You need to prepare your people: emotionally and practically. When people hear about new systems, there’s fear. Will this replace my job? Will I still belong? As leaders, we have to be transparent. We have to communicate. We have to show people that they’re part of the change.”  

    A CFO blueprint for leading forward  

    From front desk to boardroom, Argyro Apostolou’s journey is one of vision, resilience and reinvention. As CFO, she’s showing how finance leaders can become digital catalysts, driving growth, efficiency and innovation with the right systems in place.  

    “My role is to spark change in people, in processes, in what we believe is possible. With the right tools, we’re not just keeping up. We’re leading forward.”  

    Omega’s transformation proves what’s possible when CFOs embrace cloud, AI and automation to scale smarter and faster.   

    Reimagine what your finance team can do, exploring leadership strategies for AI-driven transformation.  

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    Microsoft in Business Team

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  • American Express CFO: Sell-off based on expectations that were too high

    American Express CFO: Sell-off based on expectations that were too high

    CNBC's Hugh Son reports on the latest news from American Express.

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  • Watch CNBC’s full interview with Wells Fargo CFO Michael Santomassimo

    Watch CNBC’s full interview with Wells Fargo CFO Michael Santomassimo

    Share

    Michael Santomassimo, Wells Fargo CFO, joins ‘Money Movers’ to discuss the story with the company’s quarter, how the company is gaining market share, and much more.

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  • Wells Fargo CFO: Near the trough on net interest income

    Wells Fargo CFO: Near the trough on net interest income

    Michael Santomassimo, Wells Fargo CFO, joins 'Money Movers' to discuss the story with the company's quarter, how the company is gaining market share, and much more.

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  • Broward County Insurance Adjuster Arrested

    Broward County Insurance Adjuster Arrested

    A Broward County insurance adjuster was arrested for unlicensed public adjusting.

    Giorgio Giovanni Gonzalez allegedly secured public insurance adjuster contracts for adjusting, and appraisal services, without being licensed in the state of Florida, and then unlawfully withheld money belonging to two policyholders. Gonzalez defrauded the two policyholders out of $34,424.

    Florida Chief Financial Officer Jimmy Patronis recently announced the arrest of Giorgio Giovanni Gonzalez, owner of Maximum Claims Recovery, Inc., on two counts of felony charges of Unlicensed Public Adjusting.

    “When unlicensed public adjusters take advantage of the system, every policyholder in the state loses,” Florida CFO Jimmy Patronis said. “Insurance fraud drives up rates and devalues the professionalism of honest public adjusters and insurance agents. As Florida’s insurance market begins to improve little-by-little, we will continue to assure companies and policyholders that fraud will not be tolerated in our state. Kudos to my Criminal Investigations Division fraud detectives for doing the hard work to bring this fraudster to justice. Also, thanks to the Broward State Attorney’s Office for prosecuting this case and protecting the rights of Florida consumers.”

    “NAPIA believes in the ethical practice of public insurance adjusting and applauds all efforts of the Florida DFS to assure that only licensed public adjusters are allowed to assist consumers who have sustained first party property loss,” said Brian Goodman, General counsel to the National Association of Public Insurance Adjusters (NAPIA).

    In September 2023 and December 2023, the Florida Department of Financial Services (DFS), Criminal Investigations Division (CID) received complaints from policyholders based on concerns that Maximum Claims Recovery Inc, operated by Giorgio Giovanni Gonzalez, may have secured a public insurance adjuster contract, for adjusting and appraisal services, without being licensed in the state of Florida and for unlawfully withholding monies belonging to the two policyholders.

    According to supporting documents that were provided by the policyholders, Gonzalez represented himself as a licensed public adjuster to assist the policyholders with insurance claims related to home damage in 2022, in return for a 20% adjusting fee of the insurance settlements. The contract agreements from Maximum Claims Recovery, Inc. were executed and memorialized in writing by Gonzalez and the policyholders.

    As such, Evolution Risk Advisors issued a settlement check in the amount of $18,000 on behalf of Universal and Property Insurance that was payable to Maximum Claim Recovery. Catastrophe and National Claims (CNC) issued two settlement checks on behalf of State National Insurance Company, Inc. that were payable to Maximum Claim Recovery that totaled $26,903. In both instances, the checks totaling $44,903 were signed and deposited in a Chase bank account Maximum belonging to Claims Recovery, Inc.

    CID investigators gathered evidence to show the settlement checks totaling $44,903 were deposited into the Chase account. Although, Gonzalez received the settlement checks in a timely manner, he failed to remit the funds due to one of the policyholders from the Evolution Risk Advisors claim which totaled $18,000.

    He also provided a business check in the amount of $16,424 to the other insured on behalf of CNC which was deposited by the policyholder and was returned for non-sufficient funds. As a result of fraudulent, unethical, and dishonest acts within the insurance industry, Giorgio Giovanni Gonzalez received a total of $44,903 while acting as an unlicensed public adjuster and failed to remit to the policyholders approximately $34,424 of insurance claim money.

    CID Investigators reviewed records from the Florida Department of Financial Services (DFS), Division of Agent & Agency Services (A&A) which showed Giorgio Giovanni Gonzalez licensed as an All Lines Public Adjuster suspended by the Chief Financial Officer for the state of Florida on April 25, 2013, for failing to maintain a surety bond.

    Furthermore, Gonzalez was also arrested on June 19, 2023, by CID detectives in Miami-Dade County for a similar act. In that case, Giorgio Giovanni Gonzalez was charged with one count of acting as a public adjuster and one count of grand theft.

    Giorgio Giovanni Gonzalez was arrested at the Broward County Main Jail without incident by CID detectives. The Broward State Attorney’s Office, who partnered in this investigation will handle prosecution. If convicted, Giorgio Giovanni Gonzalez could face up to 30 years in prison.

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  • Vinod Francis, new CFO of South Indian Bank

    Vinod Francis, new CFO of South Indian Bank

    The Board of Directors of The South Indian Bank Ltd approved the appointment of Vinod Francis as the Chief Financial Officer (CFO) and Key Managerial Personnel.

    Francis, a seasoned professional with over 18 years of experience within the bank, has held various key roles across departments such as credit underwriting and corporate finance.  He has served as Deputy CFO since June 2021 and has demonstrated his leadership capabilities consistently.

    In tandem with this appointment, Chithra H, the current CFO and Senior General Manager, will transition to the role of Chief Compliance Officer (CCO) as per regulatory directives issued by the RBI.

    These strategic decisions aim to strengthen the bank’s leadership team and uphold its position as a reliable and compliant institution within the banking sector.

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  • Cando Rail & Terminals Names Nate Servis as New CFO

    Cando Rail & Terminals Names Nate Servis as New CFO

    Servis will replace current CFO Rick Soenen who is retiring.


    WINNIPEG, Manitoba, March 26, 2024 (Newswire.com)
    –
    Cando Rail & Terminals, one of North America’s largest owners and operators of first and last-mile rail infrastructure, is pleased to announce the appointment of Nate Servis as Chief Financial Officer. Servis officially joined the senior leadership team on March 26, 2024, replacing Rick Soenen who is retiring.

    Servis brings a wealth of knowledge of the Transportation & Logistics sector from his 15+ years of Wall Street investment banking experience. He spent the last ~15 years at Wells Fargo Securities, most recently as a Managing Director in the Industrials group, where he was responsible for the origination and execution of M&A and capital raising transactions for clients in the Transportation & Logistics sector. Over the last few years, Servis led the firm’s coverage of the rail sector and brings deep knowledge of and relationships with Class I and short line railroads, rail service providers, and port and terminal operators, in addition to investors that target the sector. Servis led the sale of Cando Rail & Terminals to AIMCo in November 2022.

    Brian Cornick, President & CEO of Cando Rail & Terminals, highlights the importance of this strategic hire as Cando invests organically and inorganically in critical infrastructure to support shipper-customers and Class I partners.

    “As we continue on our tremendous growth trajectory, balancing organic growth with strategic acquisitions is a cornerstone of our playbook, and bringing in Nate will enhance these efforts,” says Cornick. “In addition, Nate brings relationships and credibility with key players in the United States, a core strategic growth area for Cando. His deep understanding of our company and industry, combined with his strategic finance track record, will help propel Cando to new heights.”

    Prior to joining Wells Fargo Securities, Servis began his career at Robert W. Baird in the Consumer & Industrials investment banking group. Servis holds a B.A. in economics, with a concentration in finance, from Dartmouth College.

    Source: Cando Rail & Terminals

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  • The CFO Agenda: Strategies and Ideas to Prepare You to Make the Best Decisions in 2024 | Entrepreneur

    The CFO Agenda: Strategies and Ideas to Prepare You to Make the Best Decisions in 2024 | Entrepreneur

    There’s one trend that is definitely continuing in 2024—the growing importance of the role of the CFO. Chief Financial Officers in organizations of all types will continue to have more responsibility than ever before, having to balance traditional accounting and financial planning/analysis tasks with more cross-functional strategies and responsibilities.

    The most successful CFOs understand that gaining actionable insights is key to providing the best leadership for their teams and business units.

    That’s why Oracle NetSuite and Entrepreneur are presenting the free webinar, The CFO Agenda: Strategies and Ideas to Prepare You to Make the Best Decisions in 2024. The webinar will help those in financial leadership roles think critically about the year ahead and also provide you with the actions you can take to benefit your team most.

    Moderated by AI-Researcher and Entrepreneur author Dr. Jill Schiefelbein, this webinar will feature expert insights from Megan O’Brien, NetSuite’s Business & Finance Editor, and Ian McCue, Senior Content Marketing Manager at NetSuite, as they unveil the top areas that CFOs should be addressing and examining moving forward into 2024.

    During this conversation, where attendees are encouraged to ask questions, we’ll cover:

    • Technologies worth your time: Knowing the tools at your disposal and how to leverage AI in the mix
    • Emerging regulations: Understanding how these will impact your organization and what to do to think beyond the parameters
    • Automating the fundamentals: Learning how to critically examine your processes and more strategically leverage your time
    • Empowering your teams: Gaining insights on how getting your data in order can amplify the skill set that your employees bring to the table

    Join us for The CFO Agenda: Strategies and Ideas to Prepare You to Make the Best Decisions in 2024 webinar taking place live on Tuesday, January 30 at 12 p.m. ET | 9 a.m. PT.

    Entrepreneur Events

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  • Disney CFO McCarthy to step down

    Disney CFO McCarthy to step down

    Walt Disney Co. DIS on Thursday said its chief financial officer, Christine M. McCarthy, is stepping down and taking a family medical leave of absence. Kevin Lansberry, executive vice president and CFO of Disney Parks, Experiences and Products, will serve as interim CFO, effective July 1. “Christine has served as a key strategic anchor during a period of great transformation, and she and I have discussed her desire to ensure an orderly and successful CFO succession in advance of the company’s transition to its next chief executive officer,” Disney Chief Executive Robert Iger said in a statement. Disney shares were flat…

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  • Beyond KPIs: How Finance Leaders Can Tell the Story of Profitability | Entrepreneur

    Beyond KPIs: How Finance Leaders Can Tell the Story of Profitability | Entrepreneur

    As finance leaders are increasingly embraced as strategic figures within businesses large and small, the many hats worn by them continue to expand. And it makes sense. Financial leaders bring critical insights that can help your business grow and thrive.

    The newest development for these financial leaders is their role as “Chief Data Storytellers.” With increasing pressure to uncover trends and key performance indicators (KPIs), finance leaders need to convey the meaning of their data with storytelling prowess.

    But how can finance leaders begin using storytelling to convey the importance of data as well as their insights and strategies for the future? To find out, join us for a free webinar, Beyond KPIs: Finance Leaders Tell the Story of Profitability, presented by Oracle NetSuite and Entrepreneur.

    Kevin Galloway, a professional storyteller, actor, educator, and presenter will share his top advice for how financial leaders can advance their storytelling ability. He will be joined by business development expert and keynote speaker Terry Rice, who will lead this informative and insightful conversation.

    Attendees of this webinar will learn how to:

    • Become a key storyteller in your organization through purposeful and compelling data
    • Convey impactful insights to key stakeholders across departments and teams
    • Sell your ideas effectively and lead efficiently through a challenging economy
    • And more

    The Beyond KPIs: How Finance Leaders Can Tell the Story of Profitability webinar will take place live on Thursday July 27 at 12 p.m. ET | 9 a.m. PT.

    Entrepreneur Events

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  • How Making This Critical Hire Will Improve Your Franchise | Entrepreneur

    How Making This Critical Hire Will Improve Your Franchise | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Many franchise founders (and even multi-unit franchisees) hope to one day sell their businesses to private equity. PE’s significant interest in the franchise sector is undeniable. Sellers have benefitted from the activity of these well-capitalized buyers through added deal competition and increasing prices. Even in our current market where valuations have cooled from the heady prices of late 2021 and early 2022, multiples for great franchise businesses are still strong and often exceed middle-market averages for similar-sized companies.

    No matter what your long-term objectives are, it is important to maintain a sale-ready stance as much as possible. This doesn’t just mean keeping your documentation up to date and refreshing an online data room with updated financials and franchise documentation — that’s a given. More important is having the right finance leader in place to be a strategic thought partner both to you as the founder and to your franchisees.

    This makes your Chief Financial Officer one of the most important roles in your business. It’s also a role that, especially for emerging brands, can be one of the weakest in the organization. Bootstrapped companies may not be able to afford top financial management. When private equity later comes calling, immaturity in that role specifically decreases buyers’ willingness to pay because of all the downstream impacts a vacuum in that key position creates in how the business itself is managed.

    Today’s franchise marketplace is extremely competitive for new brands. It is more expensive than ever to launch and create enough visibility to recruit top franchisee candidates. Emerging brands end up stuck in an expensive competition that often leads them to make heavy investments in franchise marketing and recruiting, including high-cost external sales channels. Little may be left over for support infrastructure, including the finance department.

    It is difficult to recruit top finance talent as a small franchisor. Small franchisors may not even have the capacity to collect and meaningfully analyze franchisee P&Ls. Without this visibility, the franchisor can’t properly track or support system health. How will your operations team know what they should be focused on during franchisee coaching conversations? How can your team create and share reports with franchisees demonstrating key metrics and the impact on profitability?

    Related: 4 Key Functions of a Chief Financial Officer

    How a strong CFO can improve your franchise

    Key areas where a strong CFO can improve your business value and exit options include:

    • Strategic thought partner for the entire management team

    • Maintain focus on corporate and unit-level profitability and growth

    • Guide the creation of training materials to help franchisees improve their financial acumen and manage a more profitable business

    • Financial modeling and scenario planning that ensures resources are invested in the highest pay-back initiatives

    • Ensure data reliability and create a cadence for collecting and analyzing business financials

    • Drive supply chain improvements and better vendor pricing

    • Evaluate debt options to fund growth and delay taking on a private equity partner

    • Establish lending programs to support franchisee expansion

    • Team leadership; build financial acumen across the business

    • Support for operations team; track operational KPIs back to financial impact at both the franchisor- and franchisee-level

    • Work with the operations team to establish a common chart of accounts for franchisees and support mechanism for ongoing profitability coaching

    Sometimes emerging franchisors try to “save money” by under-hiring for this key position. Don’t make this mistake! I recognize that for smaller brands, this is an expensive hire. Find the very best talent you can afford, and consider the ultimate payback. One strategy is to hire a fractional CFO and complement that talent with in-house administrative support until the business is large enough to comfortably afford a full-time hire.

    If you are positioning your business for an eventual sale to private equity, the CFO role is ironically most at risk. PE firms typically either have financial resources in-house or outside executives they know and are comfortable with. In the case of a platform, financial planning and reporting functions may already be consolidated. Either way, while the CFO is a key enabling role to help create a sale-ready stance and drive higher enterprise value, ironically, it may be the first position to be replaced or eliminated post-acquisition. You may need to get creative with compensation, such as creating a bonus structure in the event of a successful transaction, in order to recruit the best talent.

    Related: 3 Signs It’s Time to Hire a CFO

    Key attributes in emerging franchise CFO hire

    • Previous senior finance leadership experience — minimum 5 years

    • Strong references, especially as a strategic thought partner for the founder, senior team and franchisees

    • Experience working with private equity, preferably as CFO or VP of Finance for a brand that was sold to private equity or owned by private equity

    • Experience working in a startup environment

    • Franchise or multi-unit experience is a plus

    • Accounting background preferred over finance background

    • Good financial modeling skills

    • Experience at one of the large accounting firms is a plus

    • Ability to build a strong, profit-focused team

    If your franchise system is primarily first-time business owners, make financial acumen at the operating level a priority for your finance lead in partnership with your operations lead. A strong CFO can assist operations to develop tools and coaching that help franchisees understand the major financial levers in their business and key activities that improve profitability.

    Don’t wait until you’re selling the business for prospective buyers to point out all the low-hanging fruit that you could have captured and monetized yourself by helping franchisees improve their businesses. Strong attention to unit-level profitability also signals to franchisees that their profitability is a priority for your management team. This should attract better franchisees in the first place and validate well.

    Related: The CFO Of The Future (No, They Are Not Just The “Finance Guy”)

    Alicia Miller

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  • Mass layoffs are terrible for shareholders, a study finds

    Mass layoffs are terrible for shareholders, a study finds

    Do mass layoffs reflect poor management? That’s up for debate. But a new analysis suggests the practice harms shareholder returns, and companies should instead consider tactics like a four-day workweek to cut costs.

    CFOs tend to underestimate the “organizational drag” that’s created as a result of layoffs, according to the research and advisory firm Gartner. This can inadvertently reduce shareholder returns in the long term instead of protecting them, an analysis finds.

    “The first thing to recognize is that there is an immediate upfront cost to layoffs as a business will need to reorganize itself around a smaller group of employees and typically incur costly upfront severance payments,” Vaughan Archer, senior director of research and advisory in the Gartner Finance practice, said in a statement. And what will follow is an increased need for contractor hiring, which can be costly, and remaining employees have a ton of more work and more demands for increased compensation, according to Archer.

    Within three years, the forecasted savings from layoffs tend to become offset by the unforeseen consequences, Gartner said. Even if a business avoids “a vicious cycle of employee turnover” driven by overworked staff and low morale, any cost savings from layoffs will likely be lost. And when businesses start to rehire at some point, it will likely be at higher rates than the employees who were laid off.

    “In the more negative scenarios, the factors detailed here are also going to harm growth in existing and new business, and ultimately a firm will start losing its customers,” Archer said.

    Four days instead of five

    A four-day workweek is one of the 10 cost savings actions companies can take instead of mass layoffs, Gartner suggests. Trimming the traditional workweek model to four days is “not about cutting pay, but may control pay growth and staff turnover as employees find better work-life balance and increased productivity as burnout is reduced,” the firm noted.

    This work dynamic has certainly been a hot topic of discussion. Monster conducted a survey of 868 workers in March focusing on work productivity. Sixty-one percent said they’d rather have a four-day workweek and 33% say they’d leave their job for one with a shortened week. 

    Britain announced in February the results of the world’s biggest trial of a four-day working week, Fortune reported. The six-month pilot included over 60 companies and just under 3,000 to feedback on the “100:80:100” working model: 100% pay for 80% of the time, in exchange for 100% productivity. The results included a 65% reduction in the number of sick days, maintained or improved productivity at most businesses, and a 57% decline in the likelihood that a worker would quit, improving job retention.

    Andrew Barnes is the cofounder of the nonprofit 4 Day Week Global, helping organizations in various countries, including the U.K., pilot shorter schedules. Barnes also owns Perpetual Guardian, one of New Zealand’s largest corporate trustee companies. During MIT Sloan Management Review’s virtual summit on May 4, he talked about his company’s experience. 

    “We implemented the four-day workweek five years ago,” he said. “We’re twice as productive on a per capita basis now as our nearest competitor. We’re not seeing any adverse impacts.”

    Voluntary reduction in hours, internal redeployment, reducing executive compensation, remote work, voluntary leave of absence, a hiring freeze, benefit cuts, organization-wide pay cuts, and sabbaticals are the other options companies can take instead of mass layoffs, Gartner advises.

    If the livelihood and well-being of employees and shareholder returns are on the line, there’s a lot to consider before deciding on a major workforce reduction.

    Sheryl Estrada
    sheryl.estrada@fortune.com

    Big deal

    Microsoft has released its 2023 Work Trend Index report, “Will AI Fix Work?” The pace of work has accelerated faster than humans can keep up, and it’s impacting innovation, according to the report. “This new generation of A.I. will remove the drudgery of work and unleash creativity,” Satya Nadella, Microsoft chairman and CEO, said in a statement. The report shares three key insights for business leaders: digital debt is costing innovation, there’s a new A.I.-employee alliance, and every employee needs A.I. aptitude.

    Amid fears of A.I. job loss, when asked what they would most value A.I. for, business leaders were two times more likely to choose “increasing employee productivity” (31%) than “reducing headcount” (16%).

    The findings are based on 31,000 people in 31 countries, an analysis of both Microsoft 365 productivity signals, and labor trends from the LinkedIn Economic Graph.

    Going deeper

    “A.I. Can Be Both Accurate and Transparent,” a new report in Harvard Business Review, examines the question: Is there always a tradeoff between accuracy and explainability in artificial intelligence? The research tested a wide array of A.I. models on nearly 100 representative datasets and found that 70% of the time, a more-explainable model could be used without sacrificing accuracy. In many applications, less transparent models come with substantial downsides related to bias, equity, and user trust, according to the report.

    Leaderboard

    Sarah Wells was promoted to CFO at Spruce Power Holding Corporation (NYSE: SPRU), an owner and operator of distributed solar energy assets across the U.S., effective May 19. Wells succeeds Don Klein, who is departing in connection with the previously announced transition from XL Fleet to Spruce Power executive management. She joined Spruce Power in 2018, and most recently served as SVP of finance and accounting and head of sustainability. Before joining the company, she held various financial roles including finance and SOX manager at Cornerstone Building Brands (formerly NCI Building Systems, Inc.). Earlier in her career, Wells served as a senior auditor at PKF Texas.

    William Bardeen was promoted to EVP and CFO at The New York Times Company (NYSE: NYT), effective July 1. Roland A. Caputo, who announced his planned retirement as CFO in December 2022, will remain with the company through Sept. 30 for a transition period. Bardeen, 48, joined The New York Times Company in 2004. He’s served as chief strategy officer since 2018, also overseeing investor relations on an interim basis since March. Before that, he was SVP of strategy and development from 2013 to 2018. Bardeen has also served in various other leadership roles at The Times in corporate development, business development, and strategic planning. Before joining the company, he was a management consultant.

    Overheard

    “My personal belief is it will be like that movie Her with Scarlett Johansson and Joaquin Phoenix: Humans are a bit boring, and it’ll be like, ‘Goodbye’ and ‘You’re kind of boring.’”

    —Emad Mostaque, CEO of the fast-growing London-based startup Stability AI, which popularized the text-t0-image generator Stable Diffusion, hopes A.I. will find us “a bit boring” but acknowledges that in the worst-case scenario it “basically controls humanity,” he told BBC in an interview. 

    Sheryl Estrada

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  • What makes an award-winning board? This CFO and director says its leadership and culture

    What makes an award-winning board? This CFO and director says its leadership and culture

    This week, Fortune released its Modern Board 25 list that features the most innovative boards of directors among S&P 500 companies. Marie Myers, CFO at HP Inc., is on the board of F5, a Seattle-based cyber security and application delivery firm, which earned the No. 1 spot on the list.

    Myers isn’t on HP’s board of directors, which earned the No. 7 spot, but as CFO, she regularly interacts with the board. The Modern Board’s ranking is based on criteria including the expertise, independence, diversity, and tenure of board membership. Myers shares with me her perspective on why both boards work so well.

    “I believe leadership and culture are what make F5 and its board so effective, and those traits are what first drew me to joining its board,” says Myers, who joined in January 2019. “CEO Francois Locoh-Donou is a phenomenal leader, as is Alan Higginson, the chairman of the board. Together they have built a board that reflects the company F5 aims to be. It’s not just what it does, but also how it does it.”

    She continues, “F5’s human-first and high-performing culture fosters inclusivity and purpose among employees and the board. A lot of companies strive to be inclusive, but at F5 it happens naturally.”

    There’s also a high degree of collaboration between the board and the leadership team, and chemistry is a factor, Myers says. “Chemistry is why the board and leadership come together organically outside of the normal schedule of board meetings to discuss evolving situations and tackle complex business matters,” she says.

    A combination of her experience, “passion for digital transformation,” and financial acumen, have all been especially useful in the director role, Myers explains. “Similarly, having the opportunity to participate in several large-scale transformations in my career provides a great foundation to navigate the broader environment at the board level,” she says.

    ‘CFOs need to be knowledgeable about all aspects of the business’

    Myers, who has nearly 25 years of experience at HP, became the tech giant’s acting CFO in 2020 and was named CFO in 2021. Before being named CFO, Myers served as HP’s chief transformation officer, where she led the company’s IT and Transformation organizations.

    “I’ve always been proud of the fact that HP’s board is one of the most diverse in the technology industry,” Myers says. “There is a broad mix of gender, age, ethnicity, and experience. This brings diversity of thought to every discussion and challenge the board and our company faces.” There’s chemistry among HP’s board and leadership team, as well, she says.

    Any advice for CFOs when forging a relationship with the board? “The role of the CFO is evolving beyond traditional finance and accounting boundaries,” Myers explains. “For example, leveraging data and analytics to become more strategic advisors and partners to the business. This is also true of CFO interactions with the board.”

    She continues, “I think it’s important to establish a direct and collaborative relationship with board members. Today’s CFOs need to be knowledgeable about all aspects of the business, have a broad and informed view of the company, and share their unique insights with the board, not just financials.”

    Her most important advice: “Above all, CFOs need to communicate with transparency and always act with integrity to build trust and credibility with the board,” Myers says.

    Enjoy your weekend, and have a Happy Mother’s Day. See you on Monday.

    Sheryl Estrada
    sheryl.estrada@fortune.com

    Big deal

    Gallup released a report on Thursday regarding Americans’ perceptions of the best long-term investment, and gold is perceived to have more value than stocks. Real estate came in first as the best bet for a long-term investment (34%). This is down from last year’s record-high of 45%. “Higher interest rates over the past year have cooled the housing market, dampening consumer exuberance about real estate as an investment,” according to Gallup.

    The perception that gold is best increased from 15% in 2022 to 26% today. As a result, gold has overtaken stocks for second position. This year, fewer Americans (18%) than in 2022 (24%) see stocks or mutual funds as the best investment due to U.S. stock indices failing to gain ground over the past year. Today’s preference for stocks is on the low end of the 17% to 27% range of Americans choosing it since 2011, the research found. The latest poll was conducted April 3-25.

    Courtesy of Gallup

    Going deeper

    Here are a few Fortune weekend reads:

    “The next CEO of Twitter, replacing Elon Musk, could be this NBC ad executive—or one of these other high-powered woman execs” by Andrea Guzman and Kylie Robison

    “Former FTX chief compliance officer cooperating in crypto lawsuit against Tom Brady, Shaq and celebrity promoters” by Shawn Tully

    “Jamie Dimon says he won’t be buying any more failed banks: ‘It’s a lot of work’” by Will Daniel 

    “Doing an art activity for just 20 minutes can help you live longer. Here are easy ways to add it into your day” by Alexa Mikhail

    Leaderboard

    Here’s a list of some notable moves this week:

    Cathy R. Smith was named CFO at Nordstrom, Inc. (NYSE: JWN), effective May 29. Smith joins Nordstrom from Bright Health Group, where she has served as chief financial and administrative officer since 2020. Before Bright Health, Smith worked as the CFO for Target Corporation for five years. During that time, Target achieved double-digit revenue and EPS growth. Before Target, Smith served as CFO for public companies Express Scripts, Walmart International, Gamestop, Centex, Kennametal, Textron, and Raytheon.

    James “Jay” Saccaro was named VP and CFO at GE HealthCare (Nasdaq: GEHC), effective June 1. Saccaro succeeds Helmut Zodl who is remaining with the company to lead special projects regarding separation from GE. Saccaro joins GE HealthCare from Baxter International, where he has been serving as EVP and CFO since 2015. Before rejoining Baxter, he was SVP and CFO at Hill-Rom Corporation. 

    Todd Tuckner was named Group CFO at UBS. Tuckner will take on the role at the close of the acquisition of Credit Suisse. Having joined UBS in 2004, Tuckner is currently CFO and head of business performance and risk management for Global Wealth Management. Tuckner will succeed Sarah Youngwood, who has decided to leave the firm after the transaction closes. Youngwood joined UBS in 2022.

    Kapil Agrawal was named CFO at Outschool, an education platform that offers a variety of small-group classes online. Agrawal brings experience in finance and international expansion. Most recently, he served as interim CFO at Poshmark. He was also pivotal in improving Poshmark’s gross margins, unit economics, and profitability. Before Poshmark, Agrawal served as global head of pricing at Uber Technologies, and head of business strategy at Capital One.

    Gayle Jardine was named interim CFO at Coda Octopus Group, Inc. (Nasdaq: CODA), a real-time 3D/4D/5D and 6D imaging sonar technology company, effective May 4. The company’s CFO, Nathan Parker, has departed from his role, effective May 3. Jardine joined Coda Octopus Group as its European director of finance in 2015. Before that, she was the owner and director of Pentland Accounting Limited. Jardine also previously served as the operations and finance manager for Wireless Fibre Systems. 

    Howard Fu was promoted to CFO and treasurer at Procore Technologies, Inc. (NYSE: PCOR), a global provider of construction management software, effective May 8. After four years as CFO and treasurer at Procore, Paul Lyandres is stepping into the newly-created president. Fu most recently served as SVP of finance at Procore for two years. Previously, Fu served as VP of financial planning and analysis at DocuSign. Before that, he led the sales finance and M&A finance teams at Salesforce.

    Marcus Glover was named EVP and CFO at Bally’s Corporation (NYSE: BALY). Bobby Lavan, Bally’s current CFO, will be leaving the company to pursue another opportunity. Most recently, Glover served as chief strategy officer for QPSI LLC, a supply chain solutions and contract packaging company. Before that, he served as president and COO of the Borgata Hotel, Casino & Spa, and president and COO of the Beau Rivage Resort & Casino. Glover was also a senior executive with Caesars Entertainment in various positions, including SVP and general manager for the Horseshoe Casino and Thistledown Racino, assistant general manager at Harrah’s/Caesars Entertainment St. Louis, Mo., and VP of operations at Harrah’s/Caesars Entertainment in Biloxi, Miss.

    Gary W. Ferrera was named EVP and CFO at Driven Brands Holdings Inc. (Nasdaq: DRVN), an automotive services company, effective May 10. Ferrera succeeds Tiffany Mason. Most recently, Ferrera served as the CFO of Skillsoft Corporation, an educational software company. Before Skillsoft, he spent four years as the CFO of Cardtronics, PLC, an owner/operator of ATMs. He also served as CFO at DigitalGlobe, Inc., Intrawest Resorts Holdings, Inc., Great Wolf Resorts, Inc., National CineMedia, Inc., and Unity Media. 

    Overheard

    “Sadly, the Great Resignation is not over for mothers. The fact that a significant percentage of mothers are leaving the workforce or changing jobs due to the lack of affordable childcare and the need to stay at home with their children is concerning.”

    —Jill Koziol, Motherly CEO and cofounder, told Fortune in an interview. Motherly’s recent State of Motherhood report surveyed nearly 10,000 mothers. Eighteen percent of mothers changed jobs or completely left the workforce this past year; 28% said they wanted to stay home with the kids, and 15% said they didn’t have childcare options, the research found. For 64% of at-home moms, flexible work schedules would get them to return to the workforce. And 52% said affordable childcare would.

    Sheryl Estrada

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  • How the workforce of the future will be more like an ‘ecosystem’

    How the workforce of the future will be more like an ‘ecosystem’

    CFOs have become central in steering business strategy and value creation. But that task is about to get a lot more comprehensive in scale.

    The workforce is changing into an ecosystem, consisting of full- and part-time employees, but also includes robots, chatbots, contractors, gig workers, professional service firms, app developers, and even customers. These internal and external elements all contribute to an organization’s value creation and strategic goals, according to the new book, Workforce Ecosystems: Reaching Strategic Goals with People, Partners, and Technologies.

    Two of the authors explained their research on Thursday during MIT Sloan Management Review’s (SMR) virtual summit on the future of work. “When Amazon decided it wanted to have its own transportation system, it didn’t hire people,” said Elizabeth J. Altman, coauthor and an associate professor of management in the Manning School of Business at the University of Massachusetts Lowell. “It started subcontracting, often with mom and pops. These people add value to Amazon, but don’t work for Amazon.”

    She continued, “If you think about YouTube or TikTok, those content creators are contributing to the business in a very meaningful way, and enabling the business to go forward. For many platform businesses that rely on contributions from users, those users absolutely, in my mind, are part of the workforce ecosystem.” However, “the relationship between the company and their customers or contributors is a little more complex than it was when a company was just selling a product to customers,” Altman said.

    The years of research culminating in a book included global surveys of more than 10,000 business leaders across industries, and more than 100 executive interviews, with 26% of the businesses surveyed earning more than $1 billion in revenue. 

    When external contributors are considered to be part of an organization’s workforce, that’s “a non-trivial shift,” said David Kiron, a coauthor and editorial director of MIT SMR. “It’s so nontrivial that three-quarters of managers agree that effectively managing these external folks is critical to their organization’s success,” Kiron said. “It’s especially true for organizations like Cisco and Novartis, and some of these other organizations that have tens of thousands of external contributors getting the work done.” 

    However, based on their research, just 30% of business leaders agreed that their organization is sufficiently prepared to manage a workforce that relies on all of these external contributors. “Those leaders who are taking this issue seriously consider it to be a holy grail, or a potential strategic differentiator for them to figure this problem out,” Kiron said. 

    Regarding a workforce ecosystem framework, four vital themes emerged in their research: management practices, technology enablers, integration architectures, and leadership approaches. Senior leaders and business unit leaders have to manage these themes. And the departments—HR, procurement, finance, legal, and IT—closely collaborate in a cross-functional approach for the workforce, internally and externally. There can’t be departmental silos in this approach. 

    However, a workforce ecosystem comes with challenges like issues of ethics, compliance, and regulatory matters. “The third part of the book is about ethics and social responsibilities and corporate social responsibility,” Altman explained. “We’re very aware that this structure leads to all kinds of questions. Like, who owns the intellectual property, for example. That is an ongoing discussion. There are different mechanisms for working with it. It’s not that it hasn’t been addressed at all, but I think these discussions continue to evolve as workforce ecosystems become more prevalent.”

    In a workforce ecosystem, I asked the authors if company strategy and value creation ultimately fall under the purview of the CEO and CFO. “We have realized that these discussions move to the C-suite,” Altman said. “They are strategic conversations because they get to the heart of how organizations compete [in their] industry, how they develop new products and services and move into new markets. So yes, ultimately, we think this is a very cross-functional C-level discussion. But we also see it going down deep into an organization.”

    A workforce redefined, for sure.

    Enjoy your weekend. See you on Monday.

    Sheryl Estrada
    sheryl.estrada@fortune.com

    Big deal

    The “Nasdaq 2023 ESG & Climate Survey” is based on feedback from executives in North America and Europe. Companies of varying maturity levels report they are leaning in on sustainability initiatives despite an unclear path forward and with regulation looming on the horizon. Forty-five percent of companies have been tackling ESG strategy for fewer than three years, and 9% of companies have been tackling ESG for more than five years. As companies advance in their journey, teams grow and become more integrated into day-to-day operations and decision-making.

    When asked how the most senior team member responsible for ESG and sustainability was appointed, 47% of executives said the person voluntarily took on responsibilities on top of their own role. Meanwhile, 39% said the team member migrated internally from other teams, and 14% said the person was hired for the role.

    Courtesy of Nasdaq

    Going deeper

    Here are a few Fortune weekend reads:

    “A famous hedge fund chief who managed to net record returns as stocks fell in 2022 says investors should look abroad to profit” by Will Daniel

    “Frank founder sued by JPMorgan for making up customers is in talks with DOJ over fraud charges” by Luisa Beltran

    “Airbnb’s CEO spent 6 months living in his company’s rentals—and found the core problem with his business” by Trey Williams

    “7 ways to bounce back after a bad night’s sleep” by Alexa Mikhail

    Leaderboard

    Here’s a list of some notable moves this week:

    Markus Neubrand was named CFO at Guess?, Inc. (NYSE: GES), effective Aug. 1. Neubrand will succeed interim CFO Dennis Secor. Neubrand currently serves as group CFO of luxury fashion brand MCM Worldwide. Before that, he spent 17 years at Hugo Boss, in roles including managing director of Scandinavia, and group director of financial planning, then COO and CFO. 

    Teresa Chia was named CFO at Vertafore, an insurance technology company. Before joining Vertafore, Chia was a senior partner and managing director at White Mountains Insurance Group, a publicly traded holding company. She was responsible for White Mountains’ direct investing and corporate mergers and acquisitions activity. Before that, Chia was a private equity investor at Permira Advisors, where she focused on investments in the global technology and consumer verticals.

    Tim MacCarrick was named CFO at project44, a supply chain visibility platform. MacCarrick has over 25 years of senior executive experience in finance and operations roles. He’s held both COO and CFO roles at public and private companies including Qlik, Xerox, DLL, and most recently OutSystems. 

    Patricia Kaelin was named CFO at Safe & Green Holdings Corp.(Nasdaq: SGBX), a developer, designer, and fabricator of modular structures, effective May 2. Kaelin served as CFO of Buddies Brand, a privately held consumer packaged goods (CPG) company. Before that, she served as CFO of 1933 Industries, Inc., a publicly traded CPG company. Kaelin also served as CFO of business operations at Clifton Larson Allen, a CPA and consulting firm. 

    Jay Matushak was named CFO at Bright Health Group, Inc. (NYSE: BHG), the technology-enabled health care company, effective May 12. Matushak will succeed Cathy Smith, who is stepping down to pursue another opportunity. Matushak joined Bright Health in 2021. He currently serves as SVP of finance. Matushak also serves as CFO of Bright HealthCare, the company’s insurance business. 

    Michael Dougherty was named CFO at bioAffinity Technologies, Inc. (Nasdaq: BIAF; BIAFW), a biotechnology company. Most recently, Dougherty served as CFO of Alexa Business Domains, Amazon’s Alexa AI and Voice division. Before that, Dougherty was chief financial and operating officer of TINT and CFO at Filestack. He also previously served as CFO for Amazon Pay. 

    David Black was named CFO at Proterra Inc. (Nasdaq: PTRA), a commercial vehicle electrification technology company, effective May 16. Karina Padilla, the current CFO, will step down from her role, effective May 15. Black served as a special advisor to the CEO of BWX Technologies, a supplier of nuclear components and fuel to the U.S. government. Before that, he served as SVP and CFO of BWX Technologies. 

    Overheard

    “We continue to see our customers return to us for reasons of the product innovation…in areas like refreshers, iced shaken espresso, cold foam, those are difficult to make at home, they give customers a reason to come in.”

    —Starbucks CFO Rachel Ruggeri told Yahoo Finance.  

    Sheryl Estrada

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