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Kickstarter's new finance chief is ultra-extroverted—and she credits that trait to her success as a people-centric CFO

Economy

Leveraging Technology and Change Management: Georgia’s Accounting Chief Drives a New Era in Government Finance

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy




<a href="https://www.xcar.com.cn/bbs/viewthread.php?tid=99987603" title="爱卡汽车网">Georgia</a> Revamps Financial Systems with Tech-Forward Approach

Atlanta, Georgia – A sweeping modernization of Georgia’s state finance and accounting procedures is underway, lead by State Accounting Officer Gerlda B. Hines.Appointed to her position in September 2021, Hines is focused on dismantling antiquated systems and integrating advanced technologies to streamline financial operations across hundreds of state agencies.

A Veteran Leader Takes the Helm

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Hines brings extensive experience to this critical role. Prior to becoming State Accounting Officer,she held several key leadership positions within Georgia’s Department of Human Services,including Commissioner and CFO,overseeing a substantial $1.9 billion budget. She also previously served as Deputy CFO for the Department of Community Health and VP/CFO at the Georgia Student Finance commission.

Known for her problem-solving abilities, Hines expressed some initial surprise at her appointment. She recounted being approached for the role shortly after assuming the position of Commissioner for the Department of Human Services, describing it as an unexpected, but welcome, prospect.

Addressing Decades of Inefficiency

The need for modernization is urgent. According to hines,accounting practices across the state lacked standardization,creating inefficiencies and hindering real-time accountability. “Nothing was standardized in the way we did business around accounting,” she stated, highlighting the urgency of the situation. This lack of uniformity presented challenges in data analysis and financial reporting.

Workday Selected as Key Technology Partner

After a thorough evaluation of available vendors,the state selected Workday to implement a comprehensive Human resources,finance,and procurement technology transformation. Unlike typical corporate approvals,Hines and Commissioner Rebecca Sullivan of the Department of Administrative Services presented this notable budget request directly to the Governor’s office and state legislators.

The project officially commenced in December 2023, following a partnership established in January 2023. Over 121 agencies are scheduled to transition to the new system,marking the most substantial overhaul of Georgia’s financial infrastructure since 1999.

Navigating the Challenges of Change Management

Recognizing that technological implementation is only part of the equation,Hines prioritized change management.McKinsey research emphasizes that prosperous change management in the age of Artificial Intelligence requires fostering employee participation,experimentation,and continuous learning. She proactively addressed employee concerns about potential job displacement by emphasizing upskilling and reskilling opportunities,encouraging hands-on experience with the new platform.

Hines implemented a comprehensive engagement strategy, utilizing newsletters, dedicated change agents, and regular cross-departmental meetings to ensure all stakeholders remained informed and aligned. Proactive communication and consistent readiness assessments were central to this approach.

addressing an aging workforce and potential talent gaps, Hines believes the modernized platform will attract younger professionals interested in cutting-edge technology. The shift away from manual data entry will unlock enhanced analytical capabilities and provide valuable insights into financial trends.

Hines expressed her hope that her leadership will serve as inspiration for aspiring young women, stating, “If you can see it, you can accomplish it.”

Executive Leadership Updates

Executive New Role Company
Joao Laranjo Chief Financial Officer Stellantis N.V.
amir Jafari CFO Couchbase, Inc.

Economic Outlook & Employee Well-being

A recent report from the Bank of America Institute reveals that despite optimistic outlooks, a significant 77% of employees are experiencing financial stress due to the current economic climate. The report also indicates that 43% feel stressed about their daily workload and 37% struggle with balancing personal and family responsibilities. This highlights the growing importance of comprehensive workplace benefits, including financial wellness programs.

Did you Know? Approximately 80% of employers believe that financial wellness programs contribute to increased job satisfaction, retention, and productivity.

Pro Tip: Invest in employee financial literacy programs to boost morale and reduce stress levels within your organization.

The modernization of government financial systems is a growing trend globally. According to a 2024 report by Deloitte, governments worldwide are investing heavily in digital transformation initiatives to improve efficiency, transparency, and accountability. These efforts often include cloud computing, data analytics, and automated processes. The success of Georgia’s initiative could serve as a model for other states and countries seeking to modernize their financial operations.

Frequently Asked Questions

  • What is the primary goal of Georgia’s financial modernization project? The project aims to replace outdated financial systems with a standardized, technology-driven platform to enhance efficiency and accountability.
  • Which technology provider was selected for this project? Workday was chosen as the key technology partner to implement the new HR, finance, and procurement system.
  • How many state agencies will be impacted by this change? Over 121 agencies are slated to transition to the new system.
  • What is the importance of the change management strategy? Effective change management is crucial to ensure successful adoption of the new system and address employee concerns.
  • What are the anticipated benefits of this modernization? The project is expected to improve data analytics, streamline processes, attract talent, and enhance financial transparency.
  • What are the key concerns of employees regarding this transformation? Some staff members expressed concerns about potential job losses, prompting a focus on upskilling and reskilling initiatives.
  • When did the project officially begin? The project commenced in December 2023, following a partnership established in January 2023.

What are your thoughts on the government’s investment in new technologies? Do you think similar modernization efforts are needed in other sectors?

Share this article with your network and join the conversation!


How can Georgia’s emphasis on stakeholder engagement be adapted for states with diverse political landscapes?

leveraging Technology and Change Management: Georgia’s Accounting Chief Drives a New Era in Government Finance

The Digital Change of Georgia’s Financial Operations

Georgia’s state government, under the leadership of its Accounting Chief, is undergoing a meaningful transformation driven by strategic technology adoption and robust change management practices. This isn’t simply about implementing new software; it’s a fundamental shift in how the state manages its finances, aiming for increased transparency, efficiency, and accountability. The core of this initiative revolves around modernizing legacy systems and embracing cloud-based solutions for state accounting, government financial management, and public sector budgeting.

Key Technological Investments

Several key technologies are fueling this evolution. These include:

* Enterprise resource Planning (ERP) Systems: Moving away from fragmented, outdated systems to a centralized ERP platform is a cornerstone of the strategy. This allows for a unified view of financial data, streamlining processes like accounts payable, accounts receivable, and general ledger accounting.

* Cloud Computing: Georgia is increasingly leveraging cloud solutions for data storage and request hosting. This offers scalability, cost savings, and enhanced security compared to conventional on-premise infrastructure.Benefits include reduced IT maintenance and faster deployment of new features.

* Data Analytics & Business Intelligence (BI): Implementing advanced analytics tools allows the state to gain deeper insights into financial performance, identify trends, and make data-driven decisions. This supports improved financial reporting,performance budgeting,and fraud detection.

* Robotic Process automation (RPA): automating repetitive, manual tasks – such as invoice processing and reconciliation – frees up staff to focus on higher-value activities. RPA contributes significantly to process automation within government finance.

The critical Role of Change Management

Technology alone isn’t enough. Successful implementation requires a comprehensive change management strategy. Georgia’s approach focuses on:

* Stakeholder Engagement: Actively involving all stakeholders – from accounting staff to agency heads – in the process. This includes regular communication, training, and opportunities for feedback.

* Training and Skill Development: Providing extensive training on new systems and processes. This ensures staff are equipped to use the technology effectively and embrace the changes. Focus areas include government accounting standards, financial system training, and data analysis skills.

* Communication Strategy: A clear and consistent communication plan keeps everyone informed about the progress of the transformation, addressing concerns and building buy-in.

* Leadership Support: Strong leadership commitment is crucial for driving change and overcoming resistance. the Accounting chief’s visible support has been instrumental in the success of the initiative.

Benefits Realized: Quantifiable Improvements

The investments in technology and change management are already yielding tangible benefits:

* Increased Efficiency: Automation and streamlined processes have reduced processing times and improved overall efficiency.

* Enhanced Transparency: Centralized data and improved reporting capabilities provide greater transparency into state finances.

* Improved Accuracy: Automated controls and data validation reduce errors and improve the accuracy of financial data.

* Cost Savings: Cloud computing and process automation have resulted in significant cost savings.

* Better Decision-Making: Data analytics provide insights that support more informed and effective decision-making.

Case Study: Streamlining the Procurement Process

One notable success story is the streamlining of the state’s procurement process. Previously a largely manual and paper-based system, it has been modernized with an e-procurement platform. This has resulted in:

* reduced procurement cycle times by 30%.

* Increased competition among vendors, leading to lower prices.

* Improved contract compliance.

* Greater transparency in the procurement process.

Addressing Challenges in Government Technology Adoption

Implementing new technology in the public sector isn’t without its challenges. Georgia has proactively addressed these by:

* Cybersecurity: Prioritizing cybersecurity measures to protect sensitive financial data. This includes robust security protocols, regular vulnerability assessments, and employee training. Government cybersecurity is paramount.

* Data migration: Carefully planning and executing data migration to ensure data integrity and minimize disruption.

* Interoperability: Ensuring that new systems can integrate with existing systems to avoid data silos.

* Vendor Management: Establishing strong vendor relationships and holding vendors accountable for delivering on their promises.

Future Outlook: Continuous Innovation in Government Finance

Georgia’s journey towards a digitally transformed financial operation is ongoing. Future plans include:

* Artificial Intelligence (AI) and Machine Learning (ML): Exploring the use of AI and ML to automate more complex tasks and improve forecasting accuracy.

* Blockchain Technology: Investigating the potential of blockchain to enhance security and transparency in financial transactions.

* citizen Engagement: Developing online portals that allow citizens to access data about state finances and participate in the budgeting process. This promotes open government and citizen-centric services.

* Continuous Enhancement: Establishing a culture of continuous improvement, regularly evaluating processes and identifying opportunities for optimization.

Practical Tips for Other States

Other states looking to embark on a similar transformation can learn from Georgia’s experience:

  1. Secure Executive Sponsorship: Gain strong support from top
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Economy

AI-Driven Cybersecurity Solutions Respond to Escalating Threats and Intensified Pressure on Professionals

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy




<a href="https://www.cisa.gov/resources-tools/services/cisa-tabletop-exercise-packages" title="CISA Tabletop Exercise Packages">Cybersecurity</a> Teams Under Strain as Threats Escalate

A new industry report reveals a growing crisis within the cybersecurity field: professionals are experiencing soaring stress levels amid a rapidly escalating threat surroundings. The findings, stemming from a survey of over 3,800 experts, underscore the urgent need for investment in both personnel and advanced technologies like Artificial Intelligence to address the mounting challenges.

Rising Stress and Burnout in Cybersecurity

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The survey data indicates that approximately two-thirds of cybersecurity professionals report higher job stress now compared to five years ago. The primary driver of this increased strain is the sheer complexity of modern cyber threats, with 63% of respondents identifying it as their biggest stressor. Worryingly, nearly half-47%-attribute high stress levels as a key factor in employee attrition within the field.

predictions of future attacks are also weighing heavily on cybersecurity teams. Over 40% believe their association is likely to experience a cyberattack within the next year. Despite this expectation, less than half-41%-express confidence in their team’s ability to effectively respond to an incident. Furthermore, roughly 39% suspect that cybercrime incidents are being significantly underreported, even when legally mandated.

The Evolving Threat Landscape

The types of attacks are also shifting, with social engineering techniques-manipulating individuals to divulge sensitive details-presenting the most common threat, affecting 44% of organizations. Exploited vulnerabilities in software and hardware (37%) and the deployment of malicious software (36%) remain meaningful concerns. Approximately one-third of professionals have noted an increase in overall incident numbers this year.

“Cybersecurity professionals are navigating a remarkably complex and dynamic threat landscape,” stated Chris McGowan,a principal at a leading IT governance organization. “The speed and sophistication of attacks are increasing, demanding continuous adaptation and resilience.” McGowan emphasized the critical importance of regularly evaluating and reinforcing support systems and providing ongoing training to bolster skills.

Staffing Shortages Compound the Problem

The pressure on cybersecurity teams is exacerbated by widespread staffing shortages, with 55% reporting being understaffed and 65% struggling to fill vacant positions. A concerning trend is the decline in organizations actively training individuals from non-security backgrounds to transition into cybersecurity roles.

Here’s a snapshot of the current staffing situation:

Metric Percentage
teams Reporting Understaffing 55%
Positions Currently Unfilled 65%
Organizations Training Non-Security Staff Declining

AI as a Double-Edged Sword

Artificial intelligence is emerging as a vital tool in the fight against cybercrime,but it requires mindful implementation. experts, including Aparna Achanta, a security leader at IBM Consulting, confirm that machine learning is instrumental in detecting anomalies at scale and automating alert triage, reducing the workload on analysts. Predictive models are also helping to identify potential attack vectors and enhance event correlation within security operations centers.

However, Achanta cautions that human oversight remains essential to mitigate potential biases, blind spots, and errors in AI-driven decision-making. The integration of AI into security governance is growing, with 47% of respondents reporting involvement in developing AI governance practices and 40% participating in AI implementation.The most common applications include threat detection, endpoint security, and the automation of routine tasks.

Did you know? The global cybersecurity market is projected to reach $476.4 billion by 2030, reflecting the increasing demand for security solutions.

Pro Tip: Regularly review and update your organization’s incident response plan to ensure it aligns with the latest threat landscape and incorporates AI-driven insights.

The Future of Cybersecurity

The cybersecurity landscape is constantly evolving, and ongoing investment in both human capital and innovative technologies is crucial. Organizations must prioritize proactive threat hunting, vulnerability management, and employee training to stay ahead of malicious actors. The effective use of AI, coupled with human expertise, will be paramount in building resilient and adaptable security postures.

Frequently Asked Questions About Cybersecurity Stress

  • What is driving the increased stress in cybersecurity roles? The primary driver is the increasing complexity of cyber threats, coupled with staffing shortages and a constant sense of urgency.
  • How is AI being used to combat cybercrime? AI is being used for threat detection, automating responses, identifying vulnerabilities, and predicting future attacks.
  • What percentage of organizations expect a cyberattack in the next year? Approximately 43% of organizations believe they are likely to experience a cyberattack within the next 12 months.
  • Is cybercrime underreported? Roughly 39% of cybersecurity professionals believe cybercrime incidents are underreported, even when reporting is legally required.
  • What can organizations do to support their cybersecurity teams? Investing in training, increasing staffing levels, implementing AI tools, and prioritizing employee well-being are all vital steps.

What steps is your organization taking to address the rising challenges in cybersecurity? Share your thoughts in the comments below!


What specific types of AI, such as deep learning or reinforcement learning, are most effective in analyzing security logs, threat intelligence reports, and phishing emails?

AI-Driven Cybersecurity Solutions Respond to Escalating Threats and Intensified Pressure on Professionals

the Evolving Threat Landscape: Why Conventional Security Falls Short

The cybersecurity landscape is undergoing a radical transformation.We’re seeing a dramatic increase in both the volume and sophistication of cyberattacks. Traditional,rule-based security systems are struggling to keep pace. This isn’t just about more malware; it’s about advanced persistent threats (APTs),zero-day exploits,and increasingly targeted ransomware attacks. The pressure on cybersecurity professionals is immense – a global skills gap exacerbates the problem, leaving organizations vulnerable. Key challenges include:

* Alert Fatigue: Security Information and Event Management (SIEM) systems generate a flood of alerts, many of which are false positives, overwhelming analysts.

* Rapid Attack Vectors: New vulnerabilities and attack methods emerge constantly,requiring continuous adaptation.

* insider Threats: Detecting malicious or negligent activity from within the organization remains a notable challenge.

* Cloud security Complexities: The shift to cloud environments introduces new security concerns and requires specialized expertise.

How AI is Revolutionizing Cybersecurity

Artificial intelligence (AI) and machine learning (ML) offer a powerful response to these challenges. AI-driven cybersecurity solutions aren’t simply automating existing processes; they’re fundamentally changing how we approach security. Here’s a breakdown of key applications:

1. Threat Detection & Prevention

* Anomaly Detection: ML algorithms can establish a baseline of “normal” network behavior and identify deviations that may indicate malicious activity. This is far more effective than signature-based detection, which can only identify known threats.

* Behavioral analysis: AI can analyze user and entity behavior to detect patterns indicative of compromise, even if the attacker is using legitimate credentials. This is crucial for identifying insider threats and account takeovers.

* Predictive Threat Intelligence: AI algorithms can analyze vast amounts of data – including threat feeds, dark web activity, and vulnerability databases – to predict future attacks and proactively strengthen defenses.

* Next-Generation Antivirus (NGAV): Utilizing machine learning to identify and block malware, including zero-day threats, without relying solely on signatures.

2. Automated Incident Response

* Security Orchestration,Automation and Response (SOAR): SOAR platforms leverage AI to automate repetitive tasks,such as alert triage,investigation,and containment,freeing up security analysts to focus on more complex incidents.

* Automated Threat Hunting: AI-powered tools can proactively search for hidden threats within the network, based on threat intelligence and behavioral analysis.

* Dynamic Firewall Rules: AI can dynamically adjust firewall rules based on real-time threat intelligence and network activity.

3. Vulnerability Management

* AI-powered Vulnerability Scanning: Going beyond traditional vulnerability scanners, AI can prioritize vulnerabilities based on their exploitability and potential impact, helping organizations focus on the most critical risks.

* Automated Patch Management: AI can assist in automating the patch management process, ensuring that systems are up-to-date with the latest security fixes.

Specific AI Cybersecurity Technologies to Watch

Several key technologies are driving the AI cybersecurity revolution:

* Natural Language Processing (NLP): Used for analyzing security logs, threat intelligence reports, and phishing emails.

* Deep Learning: A subset of machine learning that excels at identifying complex patterns in data, particularly useful for malware detection and image recognition (e.g., identifying malicious content in images).

* Reinforcement Learning: Used to train AI agents to respond to security incidents in a dynamic and adaptive manner.

* Generative AI: Emerging applications include creating synthetic data for training security models and generating realistic phishing simulations for employee training.

Benefits of Implementing AI in Cybersecurity

The advantages of adopting AI-driven cybersecurity solutions are considerable:

* Improved Threat Detection Rates: AI can identify threats that woudl be missed by traditional security systems.

* Reduced false Positives: ML algorithms can learn to distinguish between legitimate activity and malicious behavior, reducing alert fatigue.

* Faster Incident Response: Automation speeds up the incident response process,minimizing damage.

* Enhanced Efficiency: AI frees up security professionals to focus on strategic tasks.

* Proactive Security Posture: Predictive threat intelligence allows organizations to anticipate and prevent attacks.

* Scalability: AI solutions can scale to meet the demands of growing organizations and increasingly

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Economy

Exploring Stephen Miran’s Nomination to the Fed’s Board: What to Know About the Tariff Proponent Appointed by Trump

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

Tesla Shareholder Fortunes Tied too Musk’s $27 Billion Payday, Palantir CTO Joins Billionaire Ranks, and Buffett‘s enduring Memo

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New York, NY – August 6, 2025 – A seismic shift in Tesla’s corporate structure and a surge in wealth among Palantir insiders are dominating headlines today, alongside a rediscovered piece of wisdom from Warren buffett.

Tesla shareholders are now directly linked to Elon Musk’s performance under a newly approved $27 billion compensation package. The deal,a significant victory for Musk,effectively aligns the company’s success with his own,perhaps amplifying both gains and risks for investors. Fortune reports this represents a pivotal moment for the electric vehicle giant, placing an unprecedented level of financial responsibility – and reward – on its CEO.

Meanwhile, Shyam Sankar, Chief Technology Officer of data analytics firm Palantir, has become an overnight billionaire thanks to the company’s soaring stock price. Sankar is now the fifth Palantir insider to reach the ultra-wealthy threshold,highlighting the substantial financial rewards accruing to key personnel within the rapidly expanding AI sector. Palantir’s success is also positioning it as a competitor to industry leader Nvidia, sparking further interest in the evolving landscape of artificial intelligence.

In a separate development, a decades-old memo from Berkshire Hathaway CEO Warren Buffett has resurfaced, offering timeless advice to business leaders.the one-page document, circulated to managers every two years for over 25 years, emphasizes the paramount importance of reputation over short-term profit. This enduring principle, as reported by Fortune, underscores Buffett’s long-held belief that a strong reputation is the cornerstone of lasting business success.

Beyond the Headlines: The Enduring Principles at Play

These seemingly disparate stories converge on essential themes relevant to modern business leadership and investment.The Tesla package highlights the growing trend of performance-based executive compensation, a strategy designed to incentivize long-term value creation. However, it also raises questions about risk concentration and the potential for misalignment between executive interests and those of all shareholders.Palantir’s success demonstrates the immense wealth-generating potential within the AI industry, but also the concentration of that wealth among a select group of insiders. This dynamic fuels ongoing debate about equitable distribution of gains from technological innovation.

Buffett’s memo serves as a powerful reminder that ethical conduct and a commitment to long-term reputation remain critical, even – and especially – in a fast-paced, profit-driven world.The enduring relevance of his advice suggests that some principles transcend market cycles and technological advancements.

Waste Management CEO on Recycling Habits

In other news, Jim Fish, CEO of Waste Management, revealed his personal commitment to recycling, even within his own household. Speaking on Fortune’s leadership Next podcast,Fish emphasized the importance of individual responsibility in promoting sustainable practices.

How might Stephen Miran’s support for tariffs influence the Federal Reserve’s approach to managing inflationary pressures?

exploring Stephen Miran’s Nomination to the Fed’s Board: what to Know About the Tariff proponent Appointed by Trump

Stephen Miran’s nomination to the Federal Reserve’s Board of Governors has ignited considerable debate,largely due to his well-documented advocacy for tariffs and his close association with the Trump administration’s trade policies. Understanding his background,economic views,and potential impact on monetary policy is crucial for investors,economists,and anyone following the future of the U.S. economy. This article dives deep into the key aspects of Miran’s profile.

Background and Career Trajectory

Stephen Miran isn’t a customary economist. His career has largely been rooted in the political sphere, specifically focusing on trade policy.

Early Career: Miran began his career working on Capitol Hill, gaining experience in legislative affairs.

U.S. Trade Representative (USTR): He served as a key advisor at the USTR during the Trump administration, playing a meaningful role in the implementation of tariffs on goods from China and other countries. This period is central to understanding his economic philosophy.

Private Sector: Prior to his nomination,Miran worked in the private sector,focusing on international trade consulting. Details of this work are currently under scrutiny as part of the vetting process.

Nomination & Confirmation Process: His nomination by President Trump in [Date – insert current date] is currently undergoing Senate confirmation hearings. The process is expected to be contentious, given the strong opposition from some Democratic senators and concerns from moderate Republicans.

Miran’s Stance on Tariffs and Trade

Miran is widely considered a proponent of using tariffs as a tool to protect American industries and address trade imbalances. This position sharply contrasts with the more conventional views held by many economists.

Arguments for Tariffs: He has consistently argued that tariffs can incentivize domestic production, create jobs, and reduce reliance on foreign suppliers. He believes they provide leverage in trade negotiations.

Section 301 Investigations: Miran was a key advocate for the use of Section 301 of the Trade Act of 1974, which allows the U.S. to impose tariffs on countries deemed to be engaging in unfair trade practices.

Criticism of Free trade Agreements: He has expressed skepticism towards traditional free trade agreements, arguing they often lead to job losses and a decline in domestic manufacturing.

Impact of Trump-Era Tariffs: Miran defended the Trump administration’s tariffs on steel, aluminum, and Chinese goods, arguing they were necesary to address long-standing trade issues. However, studies by organizations like the Peterson Institute for International economics have shown these tariffs led to increased costs for American businesses and consumers.

Potential Impact on the Federal Reserve

The appointment of a tariff proponent to the Fed’s Board of Governors raises questions about the future direction of monetary policy.

Independence of the Fed: Concerns have been raised about whether Miran’s political leanings could compromise the independence of the Federal Reserve. the Fed is traditionally expected to operate independently from political pressure.

Monetary Policy & Trade: While the Fed primarily focuses on inflation and employment, trade policy can have a significant impact on both. Miran’s views on tariffs could influence the Fed’s response to trade-related economic shocks.

Inflationary Pressures: Tariffs can contribute to inflationary pressures by increasing the cost of imported goods.Miran’s support for tariffs could perhaps lead to a more hawkish stance on interest rates to combat inflation.

Dollar Strength: Trade policies, including tariffs, can influence the value of the U.S. dollar. A stronger dollar can make U.S. exports more expensive and imports cheaper, impacting the trade balance.

Key Concerns and Opposition

Several groups have voiced concerns about Miran’s nomination.

Economists: Many mainstream economists argue that tariffs are generally harmful to the economy and that Miran’s views are not supported by economic evidence.

Business Groups: Organizations representing American businesses that rely on global supply chains have expressed concerns that Miran’s policies could disrupt trade and increase costs.

* Democratic Senators: Democratic senators have signaled their intention to vigorously oppose Miran

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Economy

CFO Turnover Drives Up Finance Chief Salaries

by Alexandra Hartman Editor-in-Chief
written by Alexandra Hartman Editor-in-Chief


CFO Compensation trends: Salaries Rise Amid Economic Shifts

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Breaking Now: Chief Financial Officer (CFO) compensation is on the rise, defying expectations of a downward shift amid economic uncertainty. A new study reveals key trends in CFO pay, highlighting increased salaries and valuable long-term incentives. What’s driving this surge in CFO compensation, and how does it compare to CEO pay?

CFO Salary Increases Remain Steady

Despite earlier predictions of declining salary increases, CFOs are seeing their compensation packages hold steady. A 2024 analysis by Compensation Advisory partners (CAP) examined compensation outcomes for CFOs relative to CEOs across 155 public companies. This study, encompassing companies with a median revenue of $12.6 billion, found that CFOs experienced a median base salary increase of 4%–mirroring figures from 2023.

Notably, CEO salaries saw no change during the same period. Kelly malafis, Founding Partner at CAP, noted that salary increases for CFOs are likely to remain steady, signaling the sustained high value placed on financial leadership roles.

Key Findings on Executive Compensation

The CAP analysis provides several key insights into executive compensation trends. These include:

  • Base Salary Increases: CFOs saw a median increase of 4% in 2024, while CEO salaries remained unchanged.
  • Long-Term Incentives (LTIs): LTI awards increased by an average of 7% for CFOs and 5% for CEOs in 2024.
  • Bonus Payouts: Bonus payouts rose 5% for cfos, compared to a 2.6% increase for CEOs.
  • Total Direct Compensation: Increased by 6% for CFOs, driven mainly by higher long-term incentive awards.

These trends reflect an increasing demand for skilled finance chiefs, reinforcing the expectation that CFO compensation will remain strong.

Long-Term Incentive trends

While CEOs still lead in total compensation, CFOs are closing the gap, with total compensation averaging about 33% of CEO compensation over the past decade. Long-term incentives (LTIs) play a crucial role in executive pay packages.

At public companies, LTIs are typically delivered through time-vested restricted stock, performance-vested stock, or stock options. However, there’s a notable shift. Five years ago, 33% of companies used all three vehicles, compared to just 22% today.performance-based equity plans remain the largest component of LTIs for both cfos and CEOs, with LTI awards growing an average of 7% for CFOs and 5% for CEOs in 2024.

pro Tip: Negotiate Your Benefits Package

When considering a CFO role, don’t just focus on the base salary. A well-rounded benefits package, including LTIs, retirement plans, and health benefits, can significantly impact your overall compensation. A recent study by the society for Human Resource management (SHRM) found that comprehensive benefits packages can increase employee satisfaction by as much as 30%.

Notable CFO Appointments

Several high-profile CFO appointments have recently made headlines:

  • Jesus “Jay” Malave: Appointed EVP and CFO of Boeing, effective august 15. He previously served as CFO of Lockheed Martin.
  • Pierre Revol: Named CFO of FrontView REIT, Inc., bringing over 20 years of experience, including a role as SVP at CyrusOne.
  • Marc Grasso: Appointed CFO of Kyverna Therapeutics, Inc., succeeding Ryan Jones. Grasso has over 25 years of experience and previously served as CFO of Alector, Inc.

Did You Know?

According to a recent study by Deloitte, companies with strong CFO leadership are 27% more likely to outperform their peers in revenue growth and profitability.

The AI Factor: Thomson Reuters Report

Thomson Reuters’ 2025 Future of Professionals report highlights a significant gap between organizations with and without formal AI strategies. The report,drawing on insights from 2,275 professionals,reveals that organizations with a defined AI strategy are twice as likely to report revenue growth from AI and 3.5 times more likely to realise critical AI benefits.

Only 22% of respondents say their organizations have a clear AI strategy,suggesting many businesses risk falling behind in returns and competitive growth.

Private Equity and Tariffs

A Wharton business journal report explores how private equity firms cope with tariffs. According to Wharton’s Burcu Esmer, tariff disruptions offer private equity investors opportunities to acquire undervalued assets but also challenge their reliance on predictable earnings.

Overheard: The Future of Collaboration

“The future of collaboration is not man versus machine, but man with machine-in an open, visible process where every contributor can see, learn from, and be fairly assessed for their effort,” writes david Ferrucci, managing director of the nonprofit Institute for Advanced Enterprise AI at the center for Global Enterprise, in a recent Fortune opinion piece.

Understanding CFO Compensation

CFO compensation packages are complex, reflecting the critical role these executives play in their organizations. Several factors influence the specific details of a CFO’s pay, including company size, industry, and individual experience.

Components of CFO Compensation

Typically, a CFO’s compensation package includes:

  • Base Salary
  • Annual Bonus
  • Long-Term Incentives (LTIs)
  • Benefits (health, retirement, etc.)

The balance between these components can vary widely. Some companies prioritize LTIs to align the CFO’s interests with long-term shareholder value,while others emphasize base salary and annual bonuses to reward short-term performance.

Industry Benchmarks

Industry benchmarks are crucial for determining competitive CFO compensation.Companies often use data from compensation surveys to ensure their offers are in line with industry standards.

The Role of Experience

A CFO’s experience and expertise are significant drivers of compensation. CFOs with a proven track record of success, especially in areas such as mergers and acquisitions, financial restructuring, or international expansion, command higher pay.

Factor Impact on CFO Compensation
Company Size Larger companies typically offer higher compensation packages.
Industry Some industries, such as technology and finance, generally pay more.
Experience More experienced CFOs with a strong track record earn higher salaries.
location CFOs in high cost-of-living areas may receive higher compensation.

Frequently Asked Questions About CFO compensation

  1. What is the primary reason for the increase in CFO compensation?

    The rising complexity of the CFO role and increasing demand for skilled financial leaders are driving the increase in CFO compensation.

  2. How do long-term incentives (LTIs) affect a CFO’s overall compensation?

    Long-term incentives (LTIs) such as stock options and performance-based equity plans, can significantly increase a CFO’s total compensation, aligning their interests with the company’s long-term success.

  3. What are the key components of a competitive CFO compensation package?

    A competitive CFO compensation package typically includes a strong base salary, performance-based bonuses, long-term incentives, and comprehensive benefits.

  4. How does the size of a company impact CFO compensation?

    Larger companies generally offer higher CFO compensation packages due to the increased complexity and responsibilities associated with managing larger financial operations.

  5. What role does industry play in determining CFO compensation levels?

    Industry plays a significant role, with some industries, such as technology and finance, offering higher CFO compensation levels due to their specific demands and high revenue potential.

what are your thoughts on the rising CFO compensation trends? Share your insights and questions in the comments below!

What are the biggest factors contributing to the increasing demand for and cost of CFOs, and how can companies mitigate the risks associated wiht high CFO turnover?

CFO Turnover Drives Up Finance Chief Salaries: A Deep Dive

The CFO Turnover Trend: A Growing Concern

In today’s dynamic economic landscape, CFO (chief Financial Officer) turnover is on the rise, becoming a notable challenge for businesses of all sizes.This increased churn is subsequently contributing to a rise in finance chief salaries. The demands placed on CFOs are more complex than ever, covering everything from financial strategy and risk management to technology integration and regulatory compliance. This high-pressure environment, combined with factors like increased competition for talent and evolving market dynamics, is fueling the CFO turnover rate.

Recent studies indicate that the average tenure of a CFO is shrinking. Replacing a CFO is a costly process, involving recruitment fees, executive search costs, onboarding training, and the hit to productivity during the transition period. Due to these factors and the rarity of finding the perfect match,businesses are frequently enough forced to pay a premium to attract and secure top financial talent. The situation highlights the intense competition for skilled professionals in the financial leadership arena.

What’s Driving CFO Turnover? Key Contributing Factors

Increased Workload and Responsibilities

  • Expanded Role: The CFO’s role now encompasses strategic planning, risk management, and technological integration.
  • Regulatory Changes: Adapting to evolving financial regulations adds to the workload.
  • Economic Uncertainty: Navigating volatile markets creates additional pressure for financial leaders.

Talent Scarcity and Demand

There’s a shortage of highly experienced CFOs with the specific skills and qualifications that organizations are looking for. This scarcity and the demand from a competitive market, puts upward pressure on executive compensation including CFO salaries. The competition includes private equity firms, multinational corporations. Many CFOs are lured by offers of higher pay and additional incentives.

The Cost of CFO Turnover

The impacts of high CFO turnover extend beyond just increased salary costs; they also translate to significant business disruptions. The costs can be subdivided into three key categories:

  • Direct Costs: These included recruitment fees, headhunter costs, background checks, and short-term executive compensation.
  • Indirect Costs: These are costs associated with lower productivity when one CFO leaves and while a newly-recruited CFO is getting up to speed.
  • Chance Costs: The business may also realize missed opportunities, when the business does not benefit from the leadership of a CFO.

Strategies for CFO Retention: Reducing Turnover and Controlling Costs

Competitive Compensation and benefits

Offering a competitive CFO salary and benefits package is crucial.This could include performance-based bonuses, stock options, and complete health plans. additionally, offering salary negotiation and other financial incentives are becoming increasingly important.

Leadership Advancement and Succession Planning

Investing in internal CFO succession planning and leadership development programs can cultivate future finance leaders from within. This approach reduces the dependency on external recruitment. Many companies are partnering with executive coaches to develop the next generation of financial leaders.

Real-World Examples: CFO Turnover Trends

In 2024, various industry reports documented a surge in CFO turnover rates across several sectors. For example, in the tech sector, the demand for CFOs with experience in mergers and acquisitions, and financial modeling sky-rocketed. Consequently, CFO salaries in this area saw an average increase of 15%. Simultaneously, the healthcare space reported increased turnover due to regulatory changes and cost pressures, leading to higher pay and benefits packages for those who stayed.

Analyzing the Data: CFO Salary Benchmarking

To combat increasing CFO salaries and the impact of turnover, organizations use salary benchmarking to determine a competitive compensation strategy. The following table gives an example of data relating to CFO salaries across different revenue size companies:

Company Revenue Average CFO Salary
Under $50 Million $250,000 – $400,000
$50 Million – $250 Million $400,000 – $700,000
Over $250 Million $700,000+

These figures are illustrative and depend on geographic location and the specifics of the CFO role. Benchmarking helps companies remain competitive when bidding for financial talent in these competitive markets.

Future Outlook: What’s Next for CFO Salaries?

The trend of rising CFO salaries is expected to continue in the near future, depending on the fluctuations of the global economy. Companies that can attract and retain top CFO talent will be better positioned to navigate the complexities of today’s financial landscape. Proactive measures now are critical to ensure a healthy and enduring financial function within a company. The most prosperous organizations are those that strategically invest in their financial leadership.

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