Should Cfos Become Ceos?

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Trident University International Module 1 Case Assignment Course Number: FIN 301 Dr. Jaichand Sewkarran 8 July 2013 It is said that approximately 40 percent of Chief Financial Officers (CFO) in today’s corporations have personal ambitions of reaching that ultimate and prestigious position of Chief Executive Officer (CEO) (Officers, 2010). However; just like the disclaimer in a television promotional contest, where the viewers are told up front that many will enter, but few will win, so it is with CFOs wanting or wishing to become CEOs. So, the question at hand is whether or not corporate finance departments are in a position to train future CEOs? In the past CFOs were consistently excluded for nomination to the coveted CEO position. However; the global financial meltdown and corporate CEO scandals of 2008 to 2010, have forced many corporate boards and stock-holders to shift from their antiquated CEO candidacy paradigms to a more up to date criterion which now places CFOs as front runners within the selection process. The past several years and as late as 2013 have seen several well-known corporations handing over the reins to their future financial well-being to former CFOs: * Indra Nooyi: * Education: B.S. from Madras Christian College; MBA from the Indian Institute of Management in Calcutta; Masters of Public and Private Management from Yale University. * Background: Mrs. Nooyi’s career began in the British textile company Tootal in India. She began her career with Pepsico in 1994 as the chief strategist. In 2000 she became Pepsico’s chief financial officer, resulting with the company’s stock price rising almost 30 percent, revenue increasing 8 percent and an earnings increase of 13 percent (Biography, 2004). Mrs. Nooyi was named President and CEO of Pepsico on October 1, 2006, where she has directed the company’s global
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