16 focus on southampton


Finance directors: what are you like?


Business and financial advisers Grant Thornton UK LLP has profiled the typical finance director, from age and gender to personality and sporting habits, in response to the ever-changing role of the FD or CFO and the opportunities or challenges they may encounter


Traditionally, those who occupy the most senior financial roles have tended to be male and this trend persists in the 21st century boardroom, both in the UK and globally. According to data from Grant Thornton‘s recent International Business Report (IBR), less than a quarter of businesses globally employ a woman in the most senior financial role (23%), only 13% in the UK and yet 63% of businesses in China.


Francesca Lagerberg, global leader for tax services and people and culture at Grant Thornton, says: “While these numbers are still relatively low, running the finance department appears to be an important stretch role, which provides opportunity for greater exposure for women progressing towards the role of CEO.“


... the FD is the logical choice to replace a CEO (85%), but a very small percentage of those interviewed would want to make this transition (2%)


In terms of age, data crunched by recruitment consultancy firm Hays reveals the typical age of the FD is between 41 and 55, three-quarters of whom have always worked in finance and almost half have had more than two decades‘ experience in the sector.


Being on the front line, FDs are uniquely qualified to assess the nation‘s finances and, through Grant Thornton‘s recent research, it has emerged that many FDs and CFOs believe the economy has turned a corner.


The International Business Report (IBR) found that the UK ended 2014 as one of the world‘s most optimistic economies. Although UK business optimism declined on a quarterly basis (from 82% in Q3 2014 to 68% in Q4 2014), the UK still ranked among the top five international economies in Q4, just ahead of the United States.


Taken on a full-year rolling average, the UK remains within the top five most optimistic economies over the year, at 79% – the country‘s highest annual average in more than 10 years and well above the global average of 41%.


www.businessmag.co.uk THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – MARCH 2015


James Davenport, group finance director at Innocent Drinks, said: “The growth figures for the UK over the past couple of quarters have been good and it sounds like they‘re going to strengthen.


“The main thing that needs to happen is that we stick to the plan that currently exists.“


A small survey of FDs reveals that many considered an eclectic mix of alternative careers including being an astronaut, journalist, footballer or orchestral conductor. However those in US Fortune 1000 companies believe that the FD is the logical choice to replace a CEO (85%), but a very small percentage of those interviewed would want to make this transition (2%).


According to Grant Thornton‘s joint report with Directorbank: What makes an outstanding FD?, successfully making the move from CFO to CEO depends on the personalities of those involved, the timing of the opportunity and the job itself.


One of the interviewees commented: “CFOs‘ broad skill can set them up to be good CEOs, but they have to want to be one. For some people it works and for others it doesn‘t.“


Looking at recruitment patterns of FDs, research from an international Pearson Partners survey found that some 72% are recruited from outside their company, while just 28% are promoted from within.


Norman Armstrong, partner of Grant Thornton‘s Southampton office, said: “The role of the FD continues to evolve and the research confirms achieving success as an FD today is down to four pivotal factors: having a strong relationship with the CEO and an ability to rein him or her in; effectively managing risks; managing relationships with investors and banks; and overseeing internal relationships with key operational managers.“


Ian Atkinson, group FD of Brit European, agreed and summed up the important partnership between the FD and CEO: “Finance director is one of the key roles on the board and the relationship with the CEO needs to be a very close one.


“If those two roles are not in harmony and working close together, there‘s a potential of having quite a dysfunctional leadership.“


Details: Norman Armstrong 023-8038-1114 norman.armstrong@uk.gt.com www.grant-thornton.co.uk


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