CFO Career Track: Can a CFO change industries?

CFOs, like many senior executives, get ‘pigeon-holed’ as they get more senior. In CFO Search, we continually hear these kinds of comments in our needs assessment process at the beginning of a Search:

• “We want our new CFO to come from a competitor”
• “The new CFO will need ___________ (fill in the blank) industry experience”
• “She should have only worked for entrepreneurial companies”
• “He must have IPO experience”

The challenge for any company as they begin their CFO Search process is to properly define what they really need. We still see too many companies treat this part of the search process as a waste of time. Usually, these are the same companies that hire wrong.

I came across this story in the CFO Journal (a new daily Wall Street Journal online publication) “Time Warner Looks Far Afield for CFO Pick”. The article talks about how Time Warner’s new CFO is not from their industry, but from financial services. It is difficult to be privy to the back room conversations that happened for this CFO Search, but I would like to believe that it was done well – not by looking just at the experience of the candidates based on what they have done before, but doing a proper assessment of what the company really needed, and matching the best possible candidates for the role.

My guess is that Time Warner and their Search Firm did their job.

For CFOs planning your career track, be aware that change is possible. You may not be stuck in that ‘pigeon-hole’. One of the challenges you face in career change is to truly understand what the company really needs from their next CFO. Do you own needs assessment. If you understand what the company needs, you will be able to sell yourself appropriately and increase your chances of getting that great new CFO role in a company and an industry that you may not have been considered for otherwise.

Canadian CFOs on the Move - week ending March 18, 2011

Companies with CFOs on the Move this week include: MegaWest Energy Corp., Axia NetMedia Corporation, Soltoro Ltd., Apogee Minerals Limited. Xebec Adsorption Inc., Minaurum Gold Inc., Arian Silver Corporation, ProSep Inc., Meadow Bay Capital Corporation, Feronia Inc., Seymour Ventures Corp., Patient Home Monitoring, CO2 Solution Inc., Hunt Mining Corp., SSQ Financial Group, Labopharm


MegaWest Energy Corp. (OTCBB: MGWSF) announced the appointment of F. George Orr as interim Chief Financial Officer (CFO). Mr. Orr is a Director of the Company and chairman of the audit committee.

Axia NetMedia Corporation (TSX: AXX) announced today that Alan Hartslief has joined Axia as Chief Financial Officer (CFO), replacing Peter McKeown who is retiring and will continue to consult with Axia through the transition. Mr. Hartslief previously was CFO for Terra Nova Royalty Corp. (formerly KHD Humboldt Wedag). Prior to that he was with Ciba Specialty Chemicals for ten years where he held several positions with increasing executive responsibilities including CFO-NAFTA Region.

Soltoro Ltd. (TSX-V: SOL) announced the appointment of Brian Jennings to the position of Chief Financial Officer and Secretary of the Company. Mr. Jennings replaces Douglas Reeson as CFO. Mr. Reeson will continue to act as a director of Soltoro Ltd.

Apogee Minerals Limited (TSX-V: APE) announced that David Hunter has been appointed as the Chief Financial Officer of the Company following the resignation of Greg Duras. Mr. Hunter has served in senior financial roles including Chief Financial Officer, Vice President, Director and Controller in both public and private companies.

Xebec Adsorption Inc. (TSX: XBC) announced the departure of the Company's Chief Financial Officer, Ginette Gagné, to pursue other avenues. Lyne Routhier, currently the Corporate Controller of the company, will assume the responsibility of Chief Financial Officer on an interim basis.

Minaurum Gold Inc. (TSX-V: MGG) announced the appointement of Cale Moodie to the position of Chief Financial Officer, replacing Darryl Cardey. Mr. Moodie previously served as the Chief Financial Officer of Underworld Resources Inc. prior to its acquisition by Kinross in 2010. He currently serves as Chief Financial Officer to Full Metal Minerals Ltd, Brixton Metals Corp. and Entourage Metals Ltd. Prior to Underworld Resources Inc., Mr. Moodie acted as Chief Financial Officer and was a Director for Sierra Geothermal Corp., which was subsequently acquired by Ram Power in 2010.

Arian Silver Corporation (TSX-V : AGQ) announced that Graham Potts will step down from his position as Chief Financial Officer effective immediately. Graham will remain as Corporate Secretary of Arian. An announcement is expected to be released soon regarding the appointment of a new CFO. To ensure a smooth transition, Arian's Financial Controller, Victoria Parkes, will cover duties of the CFO until a replacement is found.

ProSep Inc. (TSX: PRP) announced the appointment of Claude Samson as Chief Financial Officer and Corporate Secretary. Mr. Samson was most recently Quebec Leader of Financial Management Services at IBM Business Consulting Services. Previously, Mr. Samson held positions as Senior or Executive Vice-President, Finance at AMEC Engineering & Construction, Canada Trust Financial Services, AlphaNet Telecom, Téléglobe Canada and The Laurentian Group. He currently serves on the Board of Directors of Financial Executives International (Quebec Chapter), as well as on the Institute of Corporate Directors' (Quebec Chapter) Professional Development Committee.

Meadow Bay Capital Corporation (TSX-V: MAY, FRANKFURT: 20M) announced the appointment of Keith Margetson as Chief Financial Officer of the Company, replacing Terry Fields.

Feronia Inc. (TSX-V: FRN) announced the appointment of Danesh Varma as the new Chief Financial Officer of the Company, replacing Georgie Cotton, who will act as a consultant in order to facilitate the changeover. Mr. Varma was formerly President and Managing Director of American Resource Corporation Limited, Dundee Bancorp, Dundee Investment Management and Research Ltd. and Dundee Mutual Funds India, in addition to holding the post of director and Vice President of the Dundee Bank Cayman. He was formerly a director of Northgate Exploration Limited and Westfield Minerals Limited.

Seymour Ventures Corp. (TSX-V: SEY) announced that Robert Chisholm has been appointed to the Board of Directors of the Company. Mr. Chisholm is currently the Chief Financial Officer ("CFO") for Emprise Capital Corporation, a private merchant banking firm, and serves as a director, and audit committee member of a number of public companies. Mr. Chisholm also served as CFO for PNI Digital Media Inc. for more than 7 years.

Patient Home Monitoring (TSX-V: PHM) announced the appointment of Nathan Gilliland to the position of Chief Financial Officer and Chief Operating Officer.

CO2 Solution Inc. (TSX-V: CST) announced that it has appointed Thom Skinner as Senior Vice President Finance & Chief Financial Officer. Linda Parent, who acted as Vice President Finance and Administration, will remain within the company with other responsibilities and to ensure continuity of the ongoing files as well as the transfer of financial information. Mr. Skinner joins CO2 Solution from TS Business Solutions, a Quebec-based business consultancy which he founded in 2001 where he provided corporate financial and administrative services to a range of public and private companies. In this capacity, he was Chief Financial Officer of DiagnoCure Inc., a Quebec-based biotechnology company . He also served as Interim Vice President (finance and information technology) of Sanofi /Aventis Canada. More recently, he acted as Principal Advisor to the Chairman of Groupe Biscuits Leclerc Inc. Prior to TS Business Solutions, Mr. Skinner held a number of senior management positions in Canada and Europe including Executive Vice President and Chief Financial Officer of MediSolution Ltd., Vice President, Finance and Administration of McKesson Canada Corp., Vice President, Finance and Administration and Chief Financial Officer of the Business Development Bank of Canada and Vice President of Sunlife Financial Services. Mr. Skinner is a member of several professional associations in Canada and has served on several Boards of Directors including a term as Chairman of The Montreal Children's Hospital. He is currently a member of the Board of Directors of the Foundation Robert-Giffard.

Hunt Mining Corp. (TSX-V: HMX) announced the appointment of Vicki Streng as Interim Chief Financial Officer and Corporate Secretary. Bryn Harman, the current Chief Financial Officer, is resigning his position to seek other opportunities but will remain as a Director of the Corporation. Ms. Streng, the Corporation's current Controller, has over fifteen years of accounting experience in the mining industry. Previously, she held the positions of Controller for Nevoro Inc., Controller for Minera Andes Inc. and Assistant Controller for Yamana Gold Inc. (formerly Yamana Resources Inc.).

SSQ Financial Group, a mutual insurance company, announced the appointment of Patrick Cyr to the position of Senior Vice-President of Finances and Control. Mr. Cyr has been president of the Regroupement des comptables agréés de Québec and for the last 10 years has sat on the insurance committee of the Ordre des comptables agréés du Québec. Mr. Cyr worked for the firm KPMG before joining the ranks of SSQ Financial Group in 1992. He has held a number of management positions at SSQ General Insurance and SSQ Financial Group where until recently he was Vice-President of Customer Service and Administration for Group Insurance.

Labopharm, (TSX: DDS, NASDAQ: DDSS) announced that Mark D'Souza, the Corporation's current Chief Financial Officer, has been elected President and Chief Executive Officer of Labopharm and a member of the board of directors. Mr. D'Souza replaces James Howard-Tripp as President and Chief Executive Officer and board member.

If you have news about CFOs on the move, or any comments on this feature, please email us.

Spring Cleaning!

I apologize to my fans (Hi Mom!) for not sharing my thoughts over the past few weeks. I was too busy Spring Cleaning.

I didn't think you'd believe me.

However, Spring Cleaning is a great concept. For some, this is just theoretical.

With spring in the air, I recommend you clean these two important things.

1) Clean up your Personal Work Space.

Whether you have a cubicle, desk, or a corner office (which I hope to have one day soon), organizing those papers by either filing or recycling will do you a world of good, and reduce that feeling of "I'm Overwhelmed".

Try it. You'll like it.

But if your boss sees all that space around you and thinks you have room for more projects, please don't shoot the messenger.

2) Clean up your Work Team.

If you are working in any supervisory capacity, it's time to look at the team that reports to you and say "Are these the best people to work with me and help me deliver for what I am responsible for?". If you cannot say "Yes" without delay, it's a good time to think about what your team should look like, and go out and find them.

Spring is a time that many employees are considering change, and you could be their next new long-term employer.

Follow my advice, and not only will your work area be less cluttered, you'll have time to enjoy the weather outside.

Collateral Damage? US GAAP’s use in Canada may no longer be accepted

In November 2007, the United States Securities and Exchange Commission (SEC) accepted foreign issuers to prepare their financial statements using IFRS. This will allow Canadian companies, once IFRS compliant, to file their financial statements for SEC purposes without any additional changes or reconciliations.

(Read our previous article on IFRS here).

In February, The Canadian Securities Administration (CSA) released a Concept Paper on the possible changes to Securities Rules relating to IFRS. In this Concept Paper, they are considering no longer allowing Canadian companies to report in US GAAP for Canadian Securities purposes. Having heard about this, we thought we would let our comments known to the CSA. Attached is the Question from the Concept Paper, as well as our response.

If this subject is of interest to you, we highly recommend that you read the Concept Paper. Should this concern you, we recommend that you let your thoughts known to the CSA – the deadline for comments is April 13, 2008.

__________________________________________________________________

Question: Do you agree we should not allow a SEC issuer to use US GAAP for financial years beginning on or after January 1, 2009, with the exception that a SEC issuer filing US GAAP financial statements in Canada for its most recent financial year ending on or before December 31, 2008, could continue doing so until 2013? If not, why do you disagree, and how, if at all, would you modify existing rules?

Answer:

No, we do not agree.

Reason 1. We disagree for sound business reasons. While Canada is choosing an honourable position to converge accounting standards internationally, Canadian companies continue to access significant capital in the Unites States. Companies currently choose to report in US GAAP for business reasons – mostly because investors in the United States prefer to invest in companies that report in US GAAP. Taking away the opportunity for Canadian companies to report only in US GAAP would only be increasing their costs by having to report in IFRS for Canadian purposes and US GAAP (chosen for appropriate access to capital markets).

Reason 2. We have found the SEC decision to accept IFRS for foreign issuers a great step towards the admirable goal of one GAAP acceptable worldwide. It is important to note that winds of change continue to blow through the United States, from internationalist to protectionist and back again. Considering the speed in which the SEC has moved towards acceptance of IFRS for foreign issuers, we are concerned that political events could cause the SEC to change its mind just as quickly on the acceptance of IFRS for foreign issuers. Because of this risk, Canadian companies must be able to choose to continue to report in US GAAP.

We would not propose to modify existing rules for reporting in US GAAP.

Endangered Species

There is a profound shift happening in the North American workplace.

Employees are becoming an Endangered Species.

Just as Polar Bears in the Arctic are becoming endangered because the environment (weather) in the North is changing, so too are Employees facing similar issues because the environment (workplace) is changing.

The North American workplace, no matter the industry or specialization, faces one continuous constant – Change. Good Change or Bad Change. Growth or Consolidation. Technological change or Global competition. These changes seem to be here for good. The business world moves quickly, and the Labor force needs to adapt.

Generally, from my observation, employees change companies every 3 years (on average). This is because companies either cannot support longer term employees because of Change, or if they do, employees are looking for something “new and improved” as their job gets monotonous (code word for boring).

Companies that will succeed in this environment will need to start treating their employees not as assets they control, but as freelancers they need to continually invest in and work to retain.

Employees that will succeed in this new environment will need to start treating themselves as freelancers rather than employees, working to continually invest in themselves to add value to their employers (current or future).

Employees as we know them are becoming a thing of the past. How does this affect you?