TechHR
ex
L&D
UNPLUGGED
Sphere
About Us • Contact Us
People Matters ANZ
People Matters Logo
Login / Signup
People Matters Logo
Login / Signup
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

 

 

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
  • About Us
  • Advertise with us
  • Become a sponsor
  • Contact Us
  • Feedback
  • Write For Us

Follow us:

Privacy Policy • Terms of Use

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

People Matters Logo
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast
Login / Signup

Categories:

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
Investors value CFO expertise more than CEO performance in Australia: Study

News • 5th Nov 2024 • 3 Min Read

Investors value CFO expertise more than CEO performance in Australia: Study

Leadership#HRTech#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
618 Reads
The study indicates that investors are willing to increase their investments in companies where the CFO plays a significant role in strategic growth.

In a significant shift in corporate governance, a recent study by OneStream has revealed that Australian investors prioritize the competence of Chief Financial Officers (CFOs) over that of Chief Executive Officers (CEOs) when making investment decisions. 

This finding is part of OneStream's "Finance 2035 Initiative," a comprehensive research campaign examining the future of finance and the evolving roles of finance leaders in response to external pressures and investor expectations.

According to the report, titled Finance 2035: Return to Investment, which surveyed 2,000 business leaders globally—including 1,000 CFOs and 500 investors—an overwhelming 88% of global investors believe that the role of the CFO will be more crucial in 2035 than it is today. 

Specifically, in Australia, 80% of investors emphasized the necessity for CFOs to demonstrate technical, operational, and strategic competence to earn their confidence. This marks a notable trend where CFOs are viewed as key drivers of growth and strategic direction within organizations.

Thomas Palmer, Managing Director of APAC at OneStream Software, highlighted the pressures faced by Australian CFOs. “Today’s research reveals how the strategic importance of the CFO is growing. Yet, Australian CFOs are facing increased pressure to deliver on investor expectations during a time of economic uncertainty and shifting market dynamics,” Palmer stated. He noted that CFOs are increasingly expected to be "masters of everything," blending strategic and technical expertise, while grappling with the challenges posed by an overwhelming volume of data.

The study indicates that investors are willing to increase their investments in companies where the CFO plays a significant role in strategic growth. On average, organizations led by influential CFOs see a 2.6% increase in investment, rising to 3.6% among the world’s largest asset managers. This growing emphasis on CFO competence reflects a broader recognition of the finance function's pivotal role in navigating complex market dynamics and driving organizational success.

However, despite this heightened importance, 75% of Australian CFOs reported struggling to implement organizational strategies due to their extensive responsibilities. The report indicates that the pressure to meet rising expectations is further compounded by data overload, with 79% of CFOs indicating difficulty in prioritizing growth initiatives due to the sheer volume of information they must manage. This issue is particularly pronounced in Australia, where CFOs face the greatest challenges in balancing their varied roles.

The survey identified several barriers hindering CFOs from becoming more strategic in their roles. A skills gap was cited by 77% of respondents, while 72% identified legacy technology systems as a significant obstacle. Additionally, 68% of CFOs reported that a siloed approach within organizations limits their effectiveness. These challenges necessitate a more unified and data-driven approach to finance, which the study suggests is essential for CFOs to fulfill their evolving role.

According to the findings, 76% of Australian CFOs and business leaders believe that unified data and data-driven decision-making are crucial for organizational success. Furthermore, 64% of business leaders warned that companies failing to invest in technology, infrastructure, and skills today risk being unable to survive in the next five years. As such, the integration of unified data and artificial intelligence (AI) is viewed as vital for the transformation of the CFO role.

Palmer emphasized the critical need for CFOs to adapt to these changes. “CFOs are pivotal players in this high-stakes future. The blueprint for survival lies in strategic investments—in technology, infrastructure, and skills—which are non-negotiable as we move forward,” he said.

As CFOs transition from traditional financial stewardship roles to strategic visionaries, their ability to leverage data, navigate regulatory complexities, and lead with purpose will be paramount. By 2035, the finance function is expected to evolve into a cornerstone not just of financial success, but also as a critical enabler of technological advancement and sustainable growth.

The findings from OneStream’s Finance 2035 Initiative underline a fundamental shift in the landscape of corporate finance in Australia, where the role of the CFO is becoming increasingly central to achieving long-term business objectives. For investors, understanding the competencies and capabilities of CFOs will be vital in making informed investment decisions in the years to come.

For more detailed insights, you can download the full report from the Finance 2035 Initiative at finance2035.com. This research serves as a crucial resource for CFOs, investors, and business leaders looking to navigate the future of finance effectively.

Read More

Did you find this article helpful?


You Might Also Like

Hyundai Australia appoints Don Romano as CEO

NEWS • 12th Mar 2025 • 3 Min Read

Hyundai Australia appoints Don Romano as CEO

LeadershipAppointments#HRTech#HRCommunity
CEO Swami Raote asked to exit

NEWS • 7th Mar 2025 • 2 Min Read

CEO Swami Raote asked to exit

Leadership#HRTech#HRCommunity
Air New Zealand CEO resigns unexpectedly

NEWS • 6th Mar 2025 • 3 Min Read

Air New Zealand CEO resigns unexpectedly

LeadershipBusiness#HRTech#HRCommunity
NEXT STORY: Australian mining tycoon Chris Ellison exits Mineral Resources amid ethical violations

Trending Stories

  • design-thinking-hr

    Skype is dead: Did Microsoft's leadership let a billion-doll...

  • design-thinking-hr

    Keeping the C-suite in the C-suite - how do we reduce execut...

  • design-thinking-hr

    Return to office: the legalities

  • design-thinking-hr

    The trust factor: Why modern leaders can’t afford to overl...

People Matters Logo

Follow us:

Join our mailing list:

By clicking “Subscribe” button above, you are accepting our Terms & Conditions and Privacy Policy.

Company:

  • About Us
  • Advertise with us
  • Become a sponsor
  • Privacy Policy
  • Terms of Use

Contact:

  • Contact Us
  • Feedback
  • Write For Us

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

Get the latest Articles, Insight, News & Trends from the world of Talent & Work. Subscribe now!
People Matters Logo

Welcome Back!

or

Enter your registered email address to login

Not a user yet? Lets get you signed up!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

People Matters Logo

Welcome! Let's get you signed up...

Starting with the absolulte basics.

Already a user? Go ahead and login!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

Let's get to know you better

We'll never share your details with anyone, pinky swear.

And lastly...

Your official designation and company name.