So I’ve been reading up on corporate finance lately and I just had a question regarding group/divisional CFOs.
Before reading about CF, I thought there was only one CFO of a company, however I’ve noticed that there are group/divisional CFOs? Do these people run the finances of certain departments or something? I assume they’re the most compensated in their group or division, but still a fraction of what the corporate CFO makes, is this accurate?
Excuse my ignorance if I said something stupid, I am genuinely clueless regarding the subject.
Hey bigmoney19, the following topics might be helpful:
Hope that helps.
Think of it this way... if a global company has 2 separate businesses, one in the Food industry and one in the Food Packaging industry. There may be a (1) Global CFO that oversees everything, (2) a Global CFO of each separate business unit, (3) multiple CFOs for each major global region (NA. Europe, Asia, etc) for each business segment, etc. The bigger the company, the more potential CFO roles. A small geographic region CFO in a smaller business segment may be leveled (eg compensated) the same as a Sr. Manager/Director who works for a large segment in a large region. For example, a North America/US Director in a big business unit will be leveled higher than a CFO in a smaller business unit in Austria (yes, we had an Austria CFO).
Thanks! that’s a whole lot of CFOs haha
To your questions: Yes and Yes.
I actually am a Group CFO for one of the smaller groups at my F500. It's a much more operational role than THE CFO. For example I am 100% responsible for the results of my group, but I'm not at all involved in the capital structure of the organization.
While its certainly on the path, I'm a LONG ways away from being the head CFO.
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