Tag: CFOs

Job Search: Ageism


Age discrimination is an undeniable fact of our lives.  Young people are never taken seriously as customers, clients, health patients, philosophers, business developers, etc.  On the other hand, media, entertainment, advertising and marketing adore youth.  And one thing is sure: their "young" status is going to change.   Discrimination of older people even more pervasive and they don't even have a benefit of hoping for improvements. 

The problem is particularly acute in human resources.  The age discrimination is at its worst when you are searching for a job, or expecting layoffs, or know you may be deemed too expensive.  

 According to a research quoted in The Gale Group's  Small Business Encyclopedia, over 52% of surveyed executives admitted that age is one of the key factors in job searches for people 47 years old and up.  What do I think about that number?  The other 48% lied.  Age is ALWAYS a factor. For one or another reason, when we hire people we take their age into consideration.  So, we should accept that, when the tables are turned, we will be treated the same way.

I have to own up to the fact that while wearing the CFO's hiring hat, I automatically estimate the age of applicants.   I don't care about their age per se.  I do it to quantify their accomplishments against the length of their careers.  It helps with assessing their work ethics and personal ambitions.  

Other hiring managers and recruiters don't even have a justification like that.  They just go, "Too old," and send the resume into Trash.  With the job security becoming a myth of long-forgotten times, more and more middle aged people will be forced to enter the circles of job search hell.  This possibility practically hangs over everyone's head in the world of vulnerable small-size businesses.

Having that in mind, I would like to share with you an extremely useful The Ladders' article on adapting your job search, your professional "brand" and your resume to your age: Job Search in Your 20s, 30s, 40s, 50s and 60s.

By the way, is it just me, or have you also noticed the funniest thing (I am not laughing) that's happening in our media?  The "official"economists, major newspaper analysts and politicians are trying to convince us that the recession has ended months ago and we are "recovering".  Yet, every article or post related to job search and HR issues contains a phrase "especially in this economy" and you can almost hear the author's sad sigh.  

I think the old terminology of recession, recovery, economic conditions have lost their meaning.  People just don't want to admit it to themselves, because, as I frequently say, they are afraid of changes, especially changes for the worse.    The phrase "this economy" gives a false hope of a better future.  The truth is – we live in a NEW REALITY.  This is the "recovered" state.  Things are only going to get more difficult.  Everyone should be prepared to face job search ordeals in their 50s, 60s, and beyond.

Female CFOs and Controllers: Are We Equal?


March 8th, 2011 marked the 100th Anniversary of International Women's Day.  

I have to confess my aversion to such holidays.  Why do we need designated days to appreciate mothers, fathers, love, Earth, women?  It's like we treat them badly all year long and then try to make up for it in a single day. 

The Women's Day also troubles me because of its Socialist origins.  However, it provides an opportunity to raise issues of social and professional inequality.  If we have to choose between one day of awareness vs. none, of course, one is a better choice. 

Especially, if A-list stars like Daniel Craig and Judi Dench commemorate it with a video for Equals? partnership.  Watch it: Dame Judi spends two minutes reciting statistics of global-scale injustice.  It's important, but may create an illusion of remoteness.  When she says that women perform 2/3 of work, but earn only 10% of income and own 1% of property, surely, it accounts for all those "other" countries. 

Well, are we equal to our male counterparts here, in corporate America? 

Let's see.  The pay gap is still 19%.  Let me spell it out: a female CFO or Controller will make 81 cents against a dollar earned by a man in the same position.  Among the Fortune 500 companies,  only 9% of CFOs are female.  The same goes for Midcap 1500…  Enough of this lifeless statistical data.  Let me pull few examples out of my personal experience folder.

The brightest auditor I've known was assigned to my books by the CPA firm I've engaged about eight years ago.  Every time I praise her to the senior partner, he tells me that she knows ten times more than he does.  At one point I asked, when she was going to make a partner?  The answer was, "Well, the company never had a female partner before…"    

For many years I've been invited to participate in executive focus groups.  Banks are particularly interested in researching opinions of CFOs, Controllers and Treasurers.  There is never more than 25% of women in a group.  Once, when the subject was Board of Directors' accounting awareness, I was the only female participant.

Speaking of BODs, during internet bubble I worked for a high-tech start-up backed by venture capital.  The investors had their hands in a lot of businesses, which forced them onto a merry-go-round of board meetings.  They were freshly surprised every time I presented monthly results.  All other investees had male CFOs.

Five years ago I was asked by my boss to give up my CFO office for a newly hired COO.  What made this person more important than me?  Nothing at all, except for his gender.  The boss said, "I just cannot put him into a smaller office."  Really?  This big shot spent most of his time just staring out of the window.

Notice how cleverly the Equals? video is set up: even though M is 007's boss, she would never get away with shenanigans that make James Bond so endearing to the world.  So, no, we are not equal. 



 

CFO Folklore: “The Servant of Two Masters”


440940251img1_mediumTwo-headed bosses are common when people work for businesses founded by relatives, which, I am sure, can be a source of fascinating undercurrents and rivalries.  I invite my readers to share relevant stories.

I, on the other hand, worked (more than once) for equal partners who were not related.  Each of the duos consisted of individuals so different, it was a miracle they stayed in business together.  As a CFO, forced into the middle of the co-owners dynamics, I was able to observe common behavioral tendencies in the bosses themselves and people around them.

Business partners' alliances are usually symbiotic.  One is an idea generator, the other is an implementer.  One is brains, the other is money.  One can close a deal in seconds, the other makes sure the company performs.  They always complement each other, or they wouldn't be in the trenches together. 

Either will squeeze all juices out of you, and yet their personalities differ just as much as their abilities.  One is usually more diplomatic, better with people, logical, frugal.  The other is brash, careless, erratic, a lavish spender.  They don't see eye to eye about the majority of business issues and frequently talk to their CFO or Controller separately, presenting contradictory positions.

260 years ago, in "The Servant of Two Masters," Carlo Goldoni depicted the delirium of working for two employers who try to find each other without knowing they live in the same hotel.  Sounds familiar?  Poor Truffaldino is so anxious, he develops a stutter.  Imagine the hilarity!  Well, at least he got double wages.  When your single-salary job depends on maneuvering two conflicting bosses, you don't feel like laughing. 

Most people end up aligning themselves with one of them.  Sometimes, it works out in a natural way: if one owner oversees Production, while another spearheads Sales and Marketing, it is obvious where VP of Ops and VP of Sales allegiances will lie.  

Even when it's not clear-cut, people have a tendency to navigate with their issues toward the boss who is perceived to be "nicer," regardless of his preparedness to make relevant decisions.  As the result, you may end up with a wrong solution, or the issue is brought to the other owner's attention anyway; only now he knows that you tried to bypass him.   Either way, you are screwed.

CFOs and Controllers should not form any alliances when they work for two partners.  When monetary matters are concerned, both must be kept in the loop.  In super-important cases, get them into the same room, whether they like it or not.  I am known for bringing bosses into the office from their summer residencies in the middle of July, when I had to.

Of course, you have to earn your right to do so with hard work and authoritative success.  You also need to be very diplomatic with both of them – either must think you prefer deal with him and inform the other out of courtesy.  It takes Machiavellian skills to boss the bosses.  Otherwise, you will end up stuttering, like poor Truffaldino.

The Frustrated CFO Is Looking for a Litigator to Defend an Employee – Part II


…Continued from previous post (published on June 30th)

Unfortunately, even with all this tremendous efforts, business continued to contract.  First of all, the economy was unraveling: the global credit crunch was at its peak  in 2009 and consumers did not have money to pay their debts.  Secondly, the new government regulations helped debtors not to pay and settle at a fraction of the value instead.  In this conditions the bosses decided to go on the other side of the business - to open a set of new companies operating in loan modification and debt restructuring sector.

They have approached MJ with this idea and promised her that she would continue to carry out all financial executive responsibilities in the new business as well.   While still taking care of the old business, she helped them to set up all new companies.  Of course, there were not enough capital to start it up at a full speed.  The two businessmen approached MJ and asked her for a  $150,000 120 days personal loan to help the new business to catch a breath.

Dear readers, please don't judge my friend.  Let me tell you that MJ is one of the most brilliant people I've ever met.  She fully understood the risks.  However, it was clear to her that if she refused, they would have fired her right away: these are average entrepreneurs we frequently discuss – just like the rest of them, they let their emotions run their brains.  This was (and, as we know, still is) a very bad time to be an out-of-job CFO approaching 50.  It was also inconceivable  to think that these two people, whom she helped to survive, would cheat her out of her personal savings.  So, she landed the money to the new law firm. 

Ninety days later, one month before the loan was due for repayment, they fired her using an independent consultant, locked her out of the offices and built a Chinese Wall between themselves and her. 

Now, out of job and out of money, she tried to work with the attorney they appointed to deal with her on their behalf.  She was told that they could not repay her money in full on the agreed due date.  All kinds of unacceptable installment deals were suggested to her with various crazy conditions.  Of course, their lawyer employed all the tricks up her sleeve to drag the matter as long as she could – the delaying tactics were unmatchable.  And as soon as she agreed to one of their installment plans, the communications stopped altogether.  

Meanwhile, all the aggravation of her predicament and anxiety affected her health – she had an acute cardiac episode and ended up on a surgeon's table.  Her condition is managed by several medications now, but it was concluded by her doctors that she must not deal with this tragic matter directly.

So, MJ is looking for an attorney to represent her in order to get these amoral bastards to pay her back.  By the way, she has a multi-page list of misdeeds, violations, and frauds these people has committed against their business partners, clients, etc., etc. 

The most heartbreaking thing is that this woman has immigrated into the US as a political refugee 20 years ago with $90 in her pocket.  She has built herself up from ground zero only to be robbed of her hard-earned money and thrown out on the street by two ruthless monsters who still enjoy all of their businesses, multi-million dollar residences and summer houses in the Hamptons.

If any of my readers know an attorney who might be interested in this case, please email me at the.frustrated.cfo@gmail.com. 

Note: the law firm that borrowed the money has presence in PA, NJ and NY.

The Frustrated CFO Is Looking for a Litigator to Defend an Employee – Part I


Let me say right away that it is impossible to even come up with a short definition for an attorney who would act on behalf of an employee.  That is why I had to devise such an expository title for this post.  But I am trying to help my fellow financial professional and a good friend MJ who has a very unique and quite a complicated case against her former employer.  What happened to her is strikingly unfair (there are details below) and I figured I would try to put a word out there through my blog in hopes of may be receiving some legal referrals from my readers.   

It appears that 99% of the lawyers listed as "labor litigators" work for the other side (the one with the deeper pockets), defending corporations against employees in court and advising them on preventative measures to make sure that they don't get sued in the first place.  Of course, there are plenty of injury specialists ready to jump on a work-related-accident case and civil rights defenders on a lookout for sexual harassment claims.  But apparently it is difficult to find somebody to stand on the side of an employee with a less obvious case.

I am pretty confident that MJ's case is one of a kind combination of various legal matters and an intelligent attorney may find it to be an interesting challenge.  It would possibly require ten posts to cover all details, and I don't find it necessary or productive.   Instead, I will try to stick to main facts only and present them in two consecutive installments.

The employer in question was a consumer debt management entity, which consisted of multiple collection agencies with a national law firm at the head of the structure.  Two business partners helmed the operations – an attorney (senior partner at the law firm) and a shrewed businessman who handled all operational and commercial activities.  Remarkably they have managed to ride the wave of debt securitization and succeeded, in spite of themselves, without any executive support - growing into an organization that employed over 500 people in 10 states, while all their accounting and financial functions were "handled" by an outside service of a one-person CPA firm!!!

By the end of 2007, though, the company started experiencing difficulties.  In the absence of budgets, cash flow projections, profitability analysis, and, more importantly, an insight of a seasoned expert, they couldn't even understand what was going wrong.

That was when MJ got hired as a Chief Financial Officer.  Putting all the necessary functions and instruments in place, dissecting the business's performance and fixing incorrectly kept books, allowed her to discover the weakest links in their falling apart system.  She suggested drastic restructuring, shut down the sectors that were bleeding money and got them out of disadvantageous financing relationships – in other words, saved their assess from going under several times over.

To be continued…