The CEO s Ideal CFO: A Study in Maltese PIEs

Abstract

Purpose: The study aims to understand what CEOs (Chief Executive Officers) of Maltese PIEs (Public Interest Entities) expect from their CFOs (Chief Financial Officers). Furthermore, the study seeks to establish whether CFOs are expected to focus solely on finance, or whether they should also participate in strategy and planning. The study aims to identify the factors and skills that lead to a more effective CEO-CFO relationship. Methodology: The study follows a qualitative approach. Primary data was collected from semi-structured interviews conducted with active and former CEOs and CFOs of Maltese PIEs. Findings: Despite focusing primarily on their traditional finance roles, CFOs of Maltese PIEs are indeed dedicating a significant amount of time to strategic functions, as expected by CEOs. Strategic functions rank high on the average CFO’s agenda, with organisational transformation, strategic leadership and performance management ranking second, third and fourth, respectively. The research establishes that the strategic and the finance roles complement each other, such that an effective CFO is one who can establish an optimal balance between the two roles. In their CFO, CEOs seek a qualified and experienced person of integrity who is capable of: understanding, supporting and challenging them, complementing their skillset and of leading. Originality/Value: It is anticipated that this research will give finance professionals, who are increasingly assuming high management positions, a strong insight into a critical relationship they may sometime play a role in.