Kelvin Taylor

05/05/2016
BUS 1010 Term Research Project
Chief Financial Officer
My interest and passion has always been within business and finance. I currently work
for a small startup company in Lehi, UT and we were recently bought out by two partners who
have been very successful in what they have done the last twenty years. The CFO of our
company, one of the partners who bought out the company, has sort of taken me under his wing
because he knows I am studying finance. I have been able to learn from him, and am interested
in shadowing him and learning more specifically about the position. Furthermore, I particularly
thrive in leadership positions and succeed under pressure. As I have been contemplating what
career path to take, I have taken a particular interest in becoming a Chief Financial Officer
someday.
The roles of a CFO can vary greatly depending on the organization you are working for.
For example, in larger businesses and corporations, CFOs roles mainly focus on the financials
and investing activities of the company. They are not as actively involved in the operations and
other programs of the company. There is also the scenario where a CFO in a smaller company
has a broader range of responsibilities. This can include the day-to-day operations, strategic
planning, and even sales responsibilities. These describe the potential roles of a CFO in different
business structures. A basic description would be that the CFOs responsibility is financial,
administrative, and risk management of the company. This includes some operational and
strategic planning as well. Often times, a CFO will assist in making long and short term goals

for the company, and implement a plan to achieve those goals. As a member of the executives of
the company, the CFO will also play a key role in big company decisions. Amy Fontinelle, a
writer for Investopedia, describes what the day-to-day duties are like for John Lafferty, who is
the CFO of CFO-Pro:
In a typical day, Lafferty spends the first hour and a half overseeing accounting staff.
He'll then spend an hour on emails and phone calls to follow up on various company
matters. He dedicates the next hour to cash flow planning and cash management, then
another hour to account analysis and reconciliations. He then spends half an hour
recommending and documenting changes in procedures and processes, and another half
hour in strategy and planning sessions with his client's CEO or COO. He spends another
hour on accounts receivable management and collection calls, and an hour more pitching
in to help his staff when someone is ill or has too much on their plate. During the last half
hour of the day, he resolves accounting and reporting questions and disputes. Other key
activities that he performs less frequently include monthly closings, monthly, quarterly
and annual regulatory responses, filings and taxes, and annual budgets (Fontinelle,
2013).
The general career path for a CFO can also vary greatly. To be the CFO, you'll need a firm
grasp of the fundamentals of budgeting, analysis, compliance, risk management and other
accounting principles (Amstutz, 2014). A CFO will come from a background with lots of
business and operational experience, since they will be intricately involved in the operations of
the company. The will also have experience with sales and support, since they will be dealing
with investors and other executives. The main experience though will come from a financial and
accounting background. Although there are many paths you can take to get there, the following

jobs would be considered entry level. These include: accounting clerk, auditor, financial advisor,
or investment broker. You could then move up in your respective positions, or become a
controller or treasurer. CFOs need corporate experience in either the controller or treasury
functions (Gray, 2000). As you gain experience in these positions, along with leadership, you
can then become a CFO. Typically the CFOs for large corporations have gained CFO
experience through smaller companies.
The education for this position is very important, as there is a lot of requirements for the
jobs leading up to becoming a CFO. Often times this education includes a Bachelors Degree in
Accounting or Finance. On top of that, many CFOs go on to get their MBA. Accountants will
also go on to get their CPA, and people graduating in Finance will get their CFA. These may not
be required but they definitely help. Sometimes the educational background can be more
specialized for the type of company you are working for. Some CEOs can bring specific
educational experience to their jobs, earning degrees that are closely related to the companys
product and service, as well as earning related certifications and continuing education credits.
For example, a CEO with a civil engineering degree might be well suited to work for
construction or transportation firms. A social media company might prefer to hire a candidate
with a computer science degree. While 20- and 30-year-old degrees help those who have them,
more recent training and certifications enhance executive candidates' resumes and job
performance (Ashe-Edmonds, 2015).
The average salary for a CFO depends greatly on the size of the company you are
working for and the location. Experience seems to be a major factor in determining the
incomes of Chief Financial Officers. Although employees with less than five years' experience
earn around $86K on average, the five-to-10 year group has a much higher, six-figure median of

$109K. After working for 10 to 20 years, Chief Financial Officers make a median salary of
$135K. Individuals who report more than two decades of experience seem to make only slightly
more than folks in the 10-to-20 year range; the more senior group sees median earnings in the
comparatively modest ballpark of $147K. (payscale.com, 2015). According to the Bureau of
Labor Statistics, the outlook for this career is 6% from 2014-2020. (Bureau of Labor Statistics,
2015). These new opportunities will mainly come from new businesses and expansions of
current businesses. It is a very competitive position.
According to James Kosur, written in the Business Insider, the top paid CFO in 2014 was
Anthony Noto. Anthony Noto is the CFO of Twitter. Anthony Noto was born on May 2, 1968.
He joined the Army after high school. After his military service, he attended business school at
the University of Chicago. During his time at the University of Chicago he served as the brand
manager for Kraft Foods. He later received his MBA from Wharton School of Business and
started working for Goldman Sachs. James Kosur writes that, Noto has served as the chief
financial officer of Twitter since August 2014. He also served as the social network's managing
director. Before Twitter he was the managing director in the technology, media, and telecom
investment banking group at Goldman Sachs & Co. Noto also acted as the CFO of the National
Football League. Noto's massive compensation package makes him the highest-paid CFO on our
list. While he collected a salary of just $124,038, he also received restricted stock awards
of $63,075,000 and option awards of $9,545,000. His "other" compensation was listed at just
$25,060. (Kosur, 2015).
In order to better understand some of the Pros and Cons associated with this career, I
interviewed the CFO of the company I work for to get some answers. I have been very fortunate
to work closely with Bart Brockbank, who is the CFO of Skydrop Holdings LLC and a number

of other business that he and his business partner Chad Christofferson run together. According to
Bart, the biggest pros of being a CFO to him are the stock options often associated with the
position, and also being able the opportunity to be one of a couple people who are running the
business. He says that he enjoys having a say in what direction the business will go, and that he
can use his experience to help small business succeed. He says that the financial compensation
for this position is obviously a big advantage, since it is usually in the top 3 paid positions of a
company. The biggest con of this position would be the stress associated with it, according to
Bart. Having the pressure and stress of not only running a business, but being over all the
financials can take a toll on you, (Brockbank, 2016). Not only is it tough when you are in the
position of CFO, but it requires years of experience and education. Although it doesnt require
the education it takes to be a Doctor, it requires many more years in experience and entry level
positions to work your way up (Brockbank, 2016). The last thing he said was that the position
is also highly competitive and in most situations, if you arent performing as expected, you will
be replaced.
I know that this career choice isnt an easy one. It will take many years more of
education and experience. I have been fortunate to work closely with some people in this
position, and have received great advice. I also know that my skill-set falls in line with this
position. As a natural leader, and one who had a passion for business management, I know that I
am well-suited for this career.

Works Cited

Amstutz, L. (2014, May 19). Want to Become CFO? Follow This Career Path. Retrieved May
04, 2016, from https://www.roberthalf.com/finance/blog/the-career-path-to-becoming-acfo
Ashe-Edmunds, S. (2015). College Education Requirements for Top Chief Executive Officers.
Retrieved May 5, 2016, from http://work.chron.com/college-education-requirements-topchief-executive-officers-4795.html
Brockbank, Bart (2016, April 28). Personal Interview.
Bureau of Labor Statistics. (2015, December 17). Occupational Outlook Handbook. Retrieved
May 5, 2016, from http://www.bls.gov/ooh/management/top-executives.htm
Fontinelle, A. (2013, May 17). A day in the life of a CEO. Retrieved May 04, 2016, from
http://www.investopedia.com/articles/professionals/051713/day-life-cfo.asp
Gray, C. (2000, November 30). What Does It Take to Become a CFO? Retrieved May 5, 2016,
http://www.journalofaccountancy.com/issues/2000/dec/whatdoesittaketobecomeacfo.html
#sthash.mSPSah4E.dpuf
Kosur, J. (2015, August 26). The 25 highest-paid CFOs. Retrieved May 5, 2016, from
http://www.businessinsider.com/the-25-highest-paid-cfos-2015-8
PayScale. (2015). Chief Financial Officer (CFO) Salary (United States). Retrieved May 5, 2016,
from http://www.payscale.com/research/US/Job=Chief_Financial_Officer_(CFO)/Salary