Boart stock boosted with CFO hire
PUBLISHED: 07 Jan 2014 12:49:00 | UPDATED: 07 Jan 2014 16:00:50PRINT EDITION: 07 Jan 2014Shaun Drummond
![Boart stock boosted with CFO hire](/web/20140108063105im_/http://www.afr.com/rf/image/2009-2014/AFR/2014/01/07/Photos/89e1ce90-773d-11e3-9021-729f1961a7f0_syd-5p6ld5iljokwfqj56gj--646x363.jpg)
Like most mining services companies, Boart Longyear has suffered from the downturn in investment in the mining sector over the past 18 months.
The share price of ASX-listed global mining services company Boart Longyear spiked on Tuesday after it announced Rio Tinto executive Jeffrey Olsen will start as its new chief financial officer almost a year after his predecessor left.
Mr Olsen, the chief commercial officer of Rio Tinto’s Iron & Titanium business, will start on April 1.
The company’s share price rose to 47¢ when the market opened on Tuesday from a Monday close of 41¢. The share price has plummeted from a high of $2.29 on February 13, 2013, but has been climbing from its nadir on December 5 of 27¢.
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How to run an ethical business in a difficult world
PUBLISHED: 07 Jan 2014 00:12:36 | UPDATED: 07 Jan 2014 18:26:59PUBLISHED: 07 Jan 2014 PRINT EDITION: 07 Jan 2014Shaun Drummond
![How to run an ethical business in a difficult world](/web/20140108063105im_/http://www.afr.com/rf/image/AFR/Blogs/CFO/201401/Images/786650350--646x363.jpg)
Lee White, CEO, Institute of Chartered Accountants Australia says in the digital age “keeping within boundaries of the law isn’t enough to protect a company from generating a bad reputation. You now need to be within the bounds of what the public deems to be ethical.” Photo: Sasha Woolley
More than a decade ago the triple bottom line added social and environmental concerns to profit. But in the absence of legal compulsion, responsibility was hived off to sustainability managers and public relations departments. Now the ethical ground has shifted squarely under the feet of CFOs as politicians and social media have shone a light on the extremes of tax minimisation, whipping a storm of moral outrage as tax takes dwindle and citizens are forced to swallow big cuts to public spending.
Doing business in developing markets where bribes are how officials get paid has become a lot riskier and supply chains are being scrutinised for industrial abuses as finance bosses take to offshoring with gusto.
Peter Day, a director on the board of the former Centro and the business representative on the accounting and ethics standards board, is not alone when he suggests “values gateways” should bar executives from receiving bonuses if they don’t meet formal ethical standards. He says ethics are essentially customs, and these are changing as technology makes it easier to circumvent national controls, but also makes it easier to blow the whistle.
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EU mandates auditor rotation
PUBLISHED: 19 Dec 2013 13:25:31 | UPDATED: 19 Dec 2013 20:03:31PRINT EDITION: 19 Dec 2013Shaun Drummond
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The European Parliament has introduced mandatory rotation of audit firms every 10 years in a surprise last minute deal on Wednesday.
The big accounting firms have been fighting the move as it reduces their hold over clients, with longstanding audit assignments giving them a foot in the door to offer more lucrative business such as management consulting.
But auditors argue the introduction of mandatory rotation has failed to bring improvements in independence or competition where it has already been introduced, including in Italy and The Netherlands.
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Bankers dream of M&A; genies
PUBLISHED: 11 Dec 2013 00:18:01 | UPDATED: 12 Dec 2013 12:00:05PUBLISHED: 12 Dec 2013 PRINT EDITION: 11 Dec 2013Shaun Drummond
![Bankers dream of M&A genies](/web/20140108063105im_/http://www.afr.com/rf/image/AFR/Blogs/CFO/201312/Images/38399736--180x120_3_0_804790013--646x363.jpg)
Five of the 10 biggest M&A; deals of 2013 have been announced in the three months since the election. Photo: Andrew Quilty
Advisers and bankers are keeping their fingers crossed a smattering of bidding wars are a sign boardrooms are confident enough for 2014 to be a fine vintage for M&A deals.
M&A is high risk, with many variables over long periods, and regardless of the economic cycle, extracting real value is hard.
But veteran takeover lawyers Tony Damian and Rodd Levy, from Herbert Smith Freehills, reckon a combination of a new, ostensibly more business-friendly federal government, shareholder pressure to return cash or do something useful with their money, and more positive signs from developed countries – not to mention access to relatively cheap capital – is tipping their hand.
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Genworth finance boss quits
PUBLISHED: 06 Dec 2013 09:45:38 | UPDATED: 06 Dec 2013 09:45:38PRINT EDITION: 06 Dec 2013
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Paul Fegan, the CFO of lenders mortgage insurer Genworth Australia, has resigned less than a year after taking up the role.
The former St George bank chief executive will be replaced by Genworth’s investor relations head Georgette Nicholas, reports Ruth Liew
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Top earning CFOs’ pay falls, rises for women
PUBLISHED: 05 Dec 2013 10:44:00 | UPDATED: 05 Dec 2013 18:32:26PRINT EDITION: 05 Dec 2013Shaun Drummond and Edmund Tadros
![Top earning CFOs’ pay falls, rises for women](/web/20140108063105im_/http://www.afr.com/rf/image/2009-2014/AFR/2013/12/05/Photos/d4ec2f1c-5d4c-11e3-abb3-feb2652556ec__MG_8629--936x536_5_0_2387770744-002--646x363.jpg)
Origin Energy’s director of finance and strategy, Karen Moses.
The average pay for the top-10 earning finance bosses has fallen by 5.2 per cent in 2013, while it has risen 7.2 per cent for the highest paid female CFOs.
The fall partially reverses a 10 per cent rise last year.
However, there are several newcomers to the top echelons of finance chiefs this year, and on average the individuals now in the top 10 paying roles have seen their pay rise by 37.5 per cent to $4,16 million. But excluding retirees, promotions and new appointments, the rise was about 8.3 per cent compared to 2012.
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Charities regulator says needs time to prove itself
PUBLISHED: 02 Dec 2013 10:29:46 | UPDATED: 04 Dec 2013 14:58:55PRINT EDITION: 27 Nov 2013Shaun Drummond
![Charities regulator says needs time to prove itself](/web/20140108063105im_/http://www.afr.com/rf/image/2009-2014/AFR/2013/11/27/Photos/d602b452-5711-11e3-b9c8-b8b821c2db96_syd-5d8m99rjey0s1uz6mtr--646x363.jpg)
The new charities commission has made similar arguments to the Clean Energy Finance Corporation that it should be given the chance to prove it will actually cut cost rather than add to it.
As it said before the election, the Government still intends to scrap the Australian Charities and Not-for-profits Commission and return control over NGO reporting to the tax office.
Murray Baird, Assistant Commissioner of the Australian Charities and Not-For Profits Commission established in November 2012, said most charities want to keep the ACNC because it is solving their biggest problem - the cost of multiple reporting to different states and licences to approve fund raising.
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Goodman Fielder names finance chief
PUBLISHED: 02 Dec 2013 09:26:34 | UPDATED: 02 Dec 2013 09:40:24PRINT EDITION: 02 Dec 2013Shaun Drummond
![Goodman Fielder names finance chief](/web/20140108063105im_/http://www.afr.com/rf/image/2009-2014/AFR/2013/12/01/Photos/63b0666e-5ad7-11e3-a163-813277711dea_syd-61py6dy6wz41c95q6oft--646x363.jpg)
Goodman Fielder has hired Patrick Gibson to be CFO of the listed food maker, replacing Shane Gannon who departs this month to be finance boss at property developer Mirvac.
Mr Gibson has been the group financial controller at global logistics company Brambles since 2008.
Mr Gannon was hired in 2011 to help turnaround Goodman Fielder, which has been struggling with high input costs and a price squeeze from supermarkets.
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Macmahon finance boss moves to Thiess
PUBLISHED: 29 Nov 2013 18:23:23 | UPDATED: 29 Nov 2013 18:23:23PRINT EDITION: 29 Nov 2013
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Theresa Mlikota is moving on after two-and-a-half years as finance chief of mining services company Macmahon Holdings to be CFO of Leighton Holdings’ subsidiary Thiess.
Leighton is Macmahon’s largest shareholder and has recently bought most of the mining services company’s poorly performing civil construction business.
Ms Mlikota will replace Sue Palmer at Thiess in March 2014 when she retires after almost three years in the role.
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Buyer’s market for CFOs
PUBLISHED: 28 Nov 2013 11:57:00 | UPDATED: 29 Nov 2013 19:09:21PUBLISHED: 26 Nov 2013 PRINT EDITION: 29 Nov 2013Shaun Drummond
![Buyer’s market for CFOs](/web/20140108063105im_/http://www.afr.com/rf/image/AFR/Blogs/CFO/201311/Images/syd-63pptwtej887ozps1fv--646x363.jpg)
More than 20 chief financial officer jobs have changed hands during the traditional November annual meeting season, but last year’s generational changing of the guard at big listed companies appears to have run its course, with fewer high-profile retirees.
An exception is Woolworths finance director Tom Pockett, who is retiring next year after 11 years in the job.
Some other high-profile moves include online real estate business REA Group CFO Jenny Macdonald announcing last week she is moving on for personal reasons.
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Tough rules and easy money birth strange market
PUBLISHED: 27 Nov 2013 00:29:06 | UPDATED: 27 Nov 2013 10:36:05PUBLISHED: 27 Nov 2013 PRINT EDITION: 27 Nov 2013Shaun Drummond
![Tough rules and easy money birth strange market](/web/20140108063105im_/http://www.afr.com/rf/image/2009-2014/AFR/2013/11/26/Photos/99f0bd94-5674-11e3-b1c8-465f9441c1e6_syd-62fnfrgdc5w1n8lzagy1-050--U6184609052xzB-401x342_6_1_105321356--646x363.jpg)
Illustration: Karl Hilzinger
Some odd things are happening on global debt markets as money stays cheap and returns low – at least until the Fed really starts tapering – and post-GFC market regulation kicks in.
Despite all the choices on offer for funding – including our own nascent bond market and banks champing at the bit to lend – given the trove of cash in their treasuries, companies have mostly been using the money on offer from debt investors to refinance, not buy.
This means that as they fill out the holes in their debt maturity profiles, corporate treasurers ease back again on borrowing, just as many Australian corporates have done in 2013 after a busy year in 2012.
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Woolworths’ Tom Pockett to retire
PUBLISHED: 26 Nov 2013 11:36:00 | UPDATED: 26 Nov 2013 12:15:42PRINT EDITION: 26 Nov 2013
![Woolworths’ Tom Pockett to retire](/web/20140108063105im_/http://www.afr.com/rf/image/2009-2014/AFR/2013/11/26/Photos/8827aca4-5632-11e3-b1c8-465f9441c1e6_syd-5n2pzzk0bj8ot7wxo3q--646x363.jpg)
Woolworths finance director, Tom Pockett
Woolworths finance director Tom Pockett will be replaced by the retailer’s general manager of corporate finance David Marr on February 1, with Mr Pockett retiring by July after 11 years as CFO, writes Sue Mitchell
Mr Pockett has worked with three CEO’s in that time - Roger Corbett, Michael Luscombe and Grant O’Brien.
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Settlement moves to five times a day
PUBLISHED: 26 Nov 2013 05:15:13 | UPDATED: 27 Nov 2013 10:20:34PUBLISHED: 26 Nov 2013 PRINT EDITION: 26 Nov 2013Shaun Drummond
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Banks took the first step towards instant payments on Monday, as the aging “direct entry” system switched to settling transactions five times a day instead of just once each morning.
The direct entry system was originally set up 40 years ago to electronically pay salaries, but was co-opted for internet transactions up to $100,000.
This change is a win for the banks that already make same day payments to customers but until now have carried the risk of getting paid later by other banks.
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The indoors and outdoors of media ad revenue
PUBLISHED: 25 Nov 2013 17:35:11 | UPDATED: 25 Nov 2013 17:35:11PRINT EDITION: 25 Nov 2013
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There is growth in media ad revenue and it’s mostly about what’s going on outdoors and indoors, according to three finance chiefs in the midst of private equity plays in billboards and video on demand, writes Shaun Drummond
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REA Group finance boss resigns
PUBLISHED: 25 Nov 2013 10:07:25 | UPDATED: 17 Dec 2013 10:54:58PRINT EDITION: 23 Nov 2013Shaun Drummond
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The chief financial officer of real estate website REA Group, Jenny Macdonald, has resigned for personal reasons after three years in the role.
Managing director Greg Ellis said Ms Macdonald’s leadership had “assisted the company during a significant growth phase and she has played a key role in the growth of our overseas operations, particularly in Hong Kong,” he said in a statement.
Ms Macdonald will stay with the company until February 15, 2014 to help transition to a new CFO. The company is now beginning a search for her replacement.
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