Ellen Richstone, a speaker at the marcus evans CFO Summit XXVII Fall 2013, on how a board role makes a CFO better.
Interview with: Ellen Richstone, Former Fortune 500 CFO and Former CEO, Current Board Member, NACD (New England), OpEx Engine and ERI. Board member of APC until sale. Named The 2013 Distinguished Director Recipient from the Corporate Directors Group.
Stay Ahead of the Game: Forecasting for Success in a Complex Environment
How a Board Seat Would Make CFOs Better at their Job - Ellen Richstone
1. Interview with: Ellen Richstone,
Former Fortune 500 CFO and
Former CEO, Current Board Member,
NACD (New England), OpEx Engine
and ERI. Board member of APC until
sale. Named The 2013 Distinguished
Director Recipient from the
Corporate Directors Group.
“Chief Financial Officers (CFOs) who
have a board seat are able to look at
their own company’s problems from a
broader perspective with a greater
understanding of the directors’ issues
and viewpoints. That makes them better
CFOs because the board represents the
shareholders,” says Ellen Richstone,
Former Fortune 500 CFO, and Former
Chief Executive Officer (CEO), Current
Board Member, NACD (New England
Chapter of the National Association of
Corporate Directors), OpEx Engine and
ERI.
“It is important for all sitting CFOs to
have the experience of sitting on
another company’s board, to see how
other boards function, ask questions
and prod into different matters ” she
adds. “ In addition, companies gain
from having either former or current
CFOs with operating experience on their
boards, since CFOs often understand
and can add to both strategic and
tactical knowledge - in a very practical
sense during discussions and decision-
making. Finally, as a sitting CFO, my
best Audit Chairs were those who were
former CFOs and could provide advice
and counsel to me,” added Richstone,
who was also a board member of APC (a
S&P500 company) until sale and named
The 2013 Distinguished Director
Recipient from the Corporate Directors
Group (a well-known National Public
Company Director organization).
A speaker at the marcus evans CFO
Summit XXVII Fall 2013, in Las
Vegas, Nevada, November 14-16,
Richstone discusses how CFOs can
establish careers as board members and
why they should.
How can a board seat help CFOs
become better at their job?
They will be looking at and evaluating
problems from a different angle. When
they go back to their CFO role, they are
able to view issues both from their own
position as a CFO, but also from the
board perspective. That means they will
have a better sense of what boards look
for. It will make them stronger CFOs
because boards represent shareholders
and CFOs need to be thinking of
problems from the perspective of all
stakeholders.
How could CFOs establish careers
as board members?
The first assumption is that they are
doing a good job in their CFO position,
meeting their fiduciary responsibilities,
completing all the requirements related
to audit committees and being a
strategic partner to the CEO and the
board.
You then take from there the fact that
boards are always looking for
outstanding people with strong financial
skills, who understand the fiduciary
requirements related to public
companies and who can add value from
a strategic partnership standpoint.
Each person on a board brings a skill
set. The value is in having a diverse
group of people with different skill sells,
all coming together and learning from
each other, asking questions and
bringing their value in.
When you have seven board members,
the value is a multiple of that because
each person ends up being ten times
more valuable.
What are boards looking for?
Boards are always looking for strong
financial people who not only
understand and can execute on the
fiduciary requirements for the board and
audit committee, but also add value in
business decisions. Boards are looking
for people with diverse backgrounds
who can add value. It depends on what
stage the company is in, so a board
usually takes a step back, evaluates the
backgrounds of the board members,
what the needs of the company are
today and what they will be over the
next five years. It is not about today but
about where they want to take the
company. They then do a gap analysis
to determine what kind of individual
they need to help them fulfill that five-
year vision.
How can a CFO get a board seat?
They need to let the board members of
their company know that if an
opportunity exists they would like to
join the board of another organization.
Board members tend to know other
board members and hear about
openings.
They should not wait to get their first
board seat and start the process of
joining a public board when they are
nearing retirement. They need to get
their first seat at least six months to a
year before they retire.
It is not about
today but about
where they
want to take
the company
How a Board Seat Would Make
CFOs Better at their Job
2. About marcus evans Summits
marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss
strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to
individually tailor their schedules of keynote presentations, case studies, roundtables and one-on-one business meetings.
For more information, please visit: www.marcusevans.com
Upcoming Events
CFO Summit (Australia) - www.cfo-anz.com
Tax Officers Summit - www.taxofficerssummit.com
To view the web version of this interview, please click here: www.cfosummits.com/EllenRichstone
The Finance Network - marcus
evans Summits group delivers
peer-to-peer information on
strategic matters, professional
t r e n d s a n d b r e a k t h r o u g h
innovations.
Please note that the Summit is a
closed business event and the
number of participants strictly
limited.
About the CFO Summit XXVII Fall 2013
This unique forum will take place at the Red Rock Casino, Resort & Spa, Las Vegas,
Nevada, November 14-16, 2013. Offering much more than any conference,
exhibition or trade show, this exclusive meeting will bring together esteemed
industry thought leaders and solution providers to a highly focused and interactive
networking event. The Summit includes presentations on risk management, talent
management and acquisition, the new tax landscape and driving organizational
growth.
www.cfosummits.com
Contact
Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division
Tel: + 357 22 849 313
Email: press@marcusevanscy.com
For more information please send an email to info@marcusevanscy.com
All rights reserved. The above content may be republished or reproduced. Kindly
inform us by sending an email to press@marcusevanscy.com