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Yahoo
3 days ago
- Business
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Companies vie for ‘tried-and-true' CFOs amid volatility: Russell Reynolds
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Companies seeking their next finance chief are on the hunt for 'tried and true' finance leaders that can help them navigate choppy economic seas, Jim Lawson, co-leader of executive search and leadership advisory firm Russell Reynolds Associates' CFO practice told CFO Dive, with the appointments of first-time CFOs inching downwards in the year's first quarter. Though most new CFO appointments in Q1 2025 (58%) were internal hires, of those that were external hires, 'experienced CFOs are increasingly favored,' Russell Reynolds' Q1 2025 CFO Turnover Index found. Experienced CFOs made up 80% of external hires, a quarterly high on par with results seen in 2021, 'as some organizations continue to navigate complex economic markets and succession plans fail to materialize,' the report found. 'If we don't think our bench is ready quite yet, we would love to bring in a super experienced CFO who has been successful a few times and can bring that seniority in some of these turbulent markets,' Lawson said in an interview of how companies are approaching their CFO hiring strategies. Businesses are putting a growing premium on experienced finance chiefs after CFO turnover reached a six-year high in 2024, RRA previously found. That trend has continued; for the year's first quarter, 95 CFOs were appointed, compared to 89 appointments in the prior year period, the leadership advisory firm found. Finance chiefs are also reporting shorter tenures; in Q1, the average stint in the top financial seat was 5.8 years, slightly below a six-year, full-year average of 6.2 years, RRA found. A top factor that has continued to drive CFO turnover is rising retirement rates, in keeping with trends seen in 2024, 60% of departing finance chiefs either retired or moved exclusively to board positions in Q1, with many choosing not to seek new CFO roles due to factors such as burnout or financial security, or simply because now seems like the right time for retirement, according to the report. However, that growing exodus represents a challenge for businesses today looking for their next finance leader. One of the most troubling trends is 'we don't see the same kind of pipeline that we used to see 10 years ago,' said Jenna Fisher, managing director, global financial officers practice for Russell Reynolds Associates. There's a narrowing number of new accounting and finance graduates — and moreover, many of the training programs or strategies companies may have historically put into place to hone future finance chiefs have since fallen out of common practice, Fisher said. For example, many companies previously tapped investor relation roles as a kind of 'breeding ground' for their next finance chiefs, a tactic that's become less commonplace today in favor of more specialization. 'Every company wants the best head of investor relations and the best treasurer and the best head of FP&A, and so that heterogeneity of experience, that toolkit building, is harder to come by for many aspiring CFOs than it was five, 10 years ago,' Fisher said. 'And so we see a continued struggle in terms of the supply, demand imbalance for CFOs.' Businesses on the hunt for their next finance chief aren't just searching for leaders with financial chops — though such skills are still key — but for CFOs with 'effective communication skills,' Lawson said. 'Effective communication with the board, with the CEO, with the street or investors, that ask has been amplified,' when it comes to firms seeking out their next finance leader, he said. As the demand for experienced finance chiefs becomes more acute, it's critical for companies to find ways to nurture upcoming talent as a way to bridge the supply, demand gap, Fisher said. Russell Reynolds offers a CFO mentor program which works to pair first-time CFOs with finance chiefs who have recently retired, she said. 'We really believe that there need to be more mechanisms for developing excellent CFOs, because we don't see CFOs fail generally, because of a lack of skill set,' Fisher said. 'Generally, it's because they're failing on some of the quote, unquote, softer dimensions. It's communication with the board and CEO. It's the ability to inspire and develop and retain their team.'
Yahoo
4 days ago
- Business
- Yahoo
Jack in the Box serial interim finance leader takes CFO brass ring
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Jack in the Box has appointed Dawn Hooper, a 25-year company veteran and serial interim principal financial officer, as its CFO on a permanent basis, the fast food restaurant chain announced in a press release Wednesday. Hooper, 54, is taking the financial reins after stepping up in recent years to serve multiple interim stints during CFO leadership transition periods, according to a securities filing. She acted as interim principal financial officer from August 2020 to January 2021, as interim CFO from February 2023 to August 2023 and most recently served as interim principal financial officer since October. The San Diego, California-based company's C-suite has been shaken up in recent months. Lance Tucker, who the company tapped late last year to serve a second stint as CFO, abruptly shifted in February to take on the role of interim principal executive officer after CEO Darin Harris resigned to take the CEO post at the franchise system manager Goddard Systems. In March, Tucker was named permanent CEO. The leadership changes come as the company is pursuing an 'asset-light' business model, announcing last month that it would close 150-200 underperforming restaurants. Like many quick service restaurants, Jack in the Box has been working to prevent a disastrous drop in same-store sales, reviving its suit-wearing clown mascot for a series of media appearances and pushing value messaging with its Munchies Under $4 menu, CFO Dive sister publication Restaurant Dive reported. Hooper has more than 30 years of experience in accounting and finance. Before joining Jack in the Box, she started her career at KPMG, where she worked from 1993 to 2000. In addition to her interim roles, she has most recently served as senior vice president, controller at the restaurant chain since December 2022. Hooper's compensation, in connection with her appointment as CFO effective May 26, will be $620,000, according to the Securities and Exchange Commission filing. Her target incentive potential under the company's annual performance incentive Plan will be 75% of base salary, the company said in the filing, and her annual long term incentive award LTI value will be $750,000. Hooper's Jack in the Box bonafides were cited by Tucker in a statement included in the release on her appointment this week. 'I've had the privilege of working with [Hooper] throughout my tenure at the company, including during my time as CFO from 2018 to 2020, when her guidance and partnership were invaluable,' Tucker said in the statement. 'She has been instrumental in supporting the company through periods of transformation, and the board and I have full confidence in her ability to lead our finance organization as we execute on our JACK on Track plan and beyond.' The company did not respond to a request for comment. Recommended Reading Interim CFOs top list of most wanted talent
Yahoo
5 days ago
- Business
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Regulatory clarity ‘foundational' for crypto: Gemini CFO
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. As Vice President JD Vance noted Wednesday at the 2025 Bitcoin conference in Las Vegas, cryptocurrency 'finally has a champion and an ally in the White House," with the election of President Donald Trump. Both the president and vice president are large proponents — and owners — of cryptocurrency, and the Trump administration has taken immediate steps to woo cryptocurrency exchanges and related businesses, appointing industry-friendly heads to regulators like the Securities and Exchange Commission and touting plans to create a national stockpile of digital assets, among other initiatives. Though some have expressed concern over the policies and Trump's potential conflicts of interest given his business interests in the industry, many are hoping the new spotlight on crypto will help to create more space for it next to traditional currencies — something that requires firm regulatory standards to be put in place. Regulatory clarity is 'really foundational,' not just for the cryptocurrency space, but for businesses across any industry, said Dan Chen, CFO of crypto exchange Gemini Trust. The exchange, a major cryptocurrency player, was founded by Cameron and Tyler Winklevoss. 'Regulatory clarity is simply put, an ability for business to know what the rules are and how to remain in compliance with the rules,' Chen told CFO Dive in an interview. 'And I think the mode we're in now, where regulators are investing the time to create frameworks that are clear, that are concise and allow businesses to operate, is essential.' The need to bring regulatory clarity to the cryptocurrency space — which has long operated on the fringes of the mainstream financial system — has been dogged by persistent murkiness and uncertainty. Crypto exchanges and regulators have repeatedly clashed over how to properly characterize digital assets, over accepted definitions of key terms such as stablecoins — digital assets that are pinned in value to that of a fiat currency, but which lack a widely accepted regulatory definition — and which entity should ultimately hold the responsibility for regulating those assets and industry players. Among other moves praised by crypto advocates, the Trump administration has taken several steps to ease some of that tension, such as creating a working group focusing on stablecoins. Congress has also recently passed the 'Genius Act,' a bill that would create the first regulatory framework for stablecoins, NBC reported. Other regulators have also recently issued new guidance on crypto assets, with the Financial Accounting Standards Board, for example, recently implementing new standards that ask firms to report crypto assets using fair value accounting methods. 'I'm sure a lot of the regulators in the space also prefer having more clear rules, because then they know what policies and procedures they need to enforce and follow,' Chen said. Like many exchanges, Gemini itself has clashed with the SEC in the past. In 2023, for example, the regulator charged Gemini with selling unregistered securities through its Earn program. This April, the exchange and the SEC asked a federal judge for a pause on the ongoing suit in favor of reaching a potential resolution, Bloomberg reported. For Gemini, the bigger stage that is opening up for crypto also represents growing opportunity, creating more space for the exchange to cultivate relationships with businesses and individuals that might previously have been wary of utilizing digital assets. One in four (24%) individuals now own cryptocurrency, according to Gemini's 2025 Global State of Crypto report released earlier this week, compared to one in five (21%) the previous year. That growth is likely due in part to Trump's crypto policies, the exchange said, noting its survey results 'suggest these policies are inspiring interest in the industry among non-owners — those who have never invested in crypto,' according to a press release. 'Understanding and winning over this group will drive significant growth for the industry, which has experienced relatively flat adoption over the past few years.' Cryptocurrency still has 'a lot of room to grow,' Chen said, noting the total value of all crypto currently hovers around $3 trillion, compared to the approximate $60 trillion total value of the U.S. stock market. Amid changing policies, many businesses are exploring new potential use cases for cryptocurrency — payment players, including PayPal, Mastercard and Payoneer, are now experimenting with stablecoin usage for cross-border payments, for example, CFO Dive sister publication Payments Dive reported. 'There are so many use cases, many of which have not been fully developed, but to me, that's clearly the platform that things will be built upon,' Chen said of digital assets. 'And that's really the goal, you skate to where the puck will be, and that's where that future will get built in.' One of the areas Chen is particularly excited about in regards to Gemini is the company's credit card business, he said. The exchange offers a credit card product in partnership with Mastercard that enables users to earn Bitcoin on purchases, according to its website. Such a card is appealing to individuals who are already fully invested in cryptocurrency or digital assets, but also those who are interested, 'but they don't know what the right time to invest is,' Chen said. 'That's always one of the big riddles.' It's a way for individuals to ease into the space 'without making a conscious decision to buy at one moment with one large dollar amount,' he said. 'And you might look at that and realize the interface is great, the exchange is fantastic, and it's a great tool to get involved with Gemini. So for us, it is not just a side business. It's a part of an ecosystem to build engagement.' An alum of buy now, pay later company Affirm, where he previously served as VP of capital markets and bank partnerships, Chen joined the crypto exchange as its CFO in March, CFO Dive reported, amid speculation that the exchange had confidentially filed for an initial public offering. Chen's past experience includes serving as CFO for financial services company Nearside, which was acquired by Plastiq in 2022, as well as a stint as treasurer for Cross River Bank, according to his LinkedIn profile. 'It's really important to me that wherever I go in my career, I move towards an industry that's in high growth, high opportunity, high scaling, because it's frankly, a lot more fun,' Chen said of his decision to move to the Gemini exchange. Chen declined to comment on 'market speculation' when asked about a potential IPO. In his first few months in the CFO role for the exchange, Chen is largely in listening mode. 'I think one of the mistakes I've made earlier in my career is to arrive somewhere and say, 'what was I really good at before, and how quickly can I deploy that skill set now in my new role?'' Chen said. 'And I realize sometimes that's kind of like putting a square peg in a round hole.' Recommended Reading Verizon's interim CFO lands permanent seat Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Salesforce says over 8,000 customers using new agentic AI tool
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Salesforce's new agentic artificial intelligence product known as 'Agentforce' has so far generated over 8,000 deals, the company said Wednesday. Agentforce is also now producing $100 million in average order value, CEO Marc Benioff said during an earnings call. 'It's much faster than any product in our history, and we are not even fully deployed on all geographies, currencies or languages,' he said. Salesforce is among tech giants whose heavy AI spending is being closely watched by investors. Microsoft expects to spend roughly $80 billion during the current fiscal year on AI-enabled data centers to train large language models and deploy AI and cloud-based applications, Microsoft President Brad Smith said in January. The tech giant remains on track to achieve this spending goal despite a recent pullback in AI data center projects, a spokesperson told CFO Dive in April. In September, Salesforce's venture capital division, Salesforce Ventures, announced a $500 million AI fund, which at the time marked a total commitment of $1 billion in the space over a period of 18 months. That announcement came just days after Salesforce unveiled Agentforce, a suite of AI agents designed to perform workplace tasks. At the time, Benioff said the company was seeking to deploy one billion agents by the end of 2025. In addition to generating over 8,000 deals, Agentforce has also handled over 750,000 requests on cutting case volume by 7% year over year, the company said Wednesday. 'As a result, we have reduced some of our hiring needs, enabling us to rebalance and redeploy 500 customer support employees to higher impact data plus AI roles by year-end, driving $50 million in savings,' Salesforce Chief Operating and Financial Officer Robin Washington said during the Wednesday earnings call. The enterprise software giant highlighted the Agentforce news as it also posted $9.8 billion in total revenues for its fiscal 2026 first quarter ended April 30, an increase of 8% compared with the year-earlier period. Despite the revenue growth, the company's stock fell more than 9% on Thursday. Analysts at RBC Capital Markets on Thursday downgraded their rating for Salesforce on Thursday, questioning the wisdom of the software giant's Tuesday announcement that it agreed to buy cloud data management firm Informatica for about $8 billion. 'While we understand wanting to control the full stack at the data layer, we don't know that it was mission-critical to own Informatica outright, especially with Informatica having integrations with Salesforce (including Agentforce),' the analysts said. 'Furthermore, given many of Salesforce's prior acquisitions have not been integrated, we believe this creates deal risk, not to mention the risk that Informatica becomes a distraction from Salesforce's core business.' The analysts also said they've heard from industry participants who are 'mixed on Agentforce and whether the technology truly lives up to the marketing yet.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
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Eos Energy abruptly terminates CFO after three months
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Battery maker Eos Energy terminated the employment of its CFO, Eric Javidi on Tuesday 'effective immediately,' according to a securities filing, approximately three months after Javidi first assumed the company's top finance seat. Javidi's termination without cause was 'not related to the Company's financial or operating results or to any disagreements or concerns regarding the company's financial or reporting practices,' Eos Energy said. The Edison, New Jersey-based company appointed Nathan Kroeker, its chief commercial officer — and previously its CFO before Javidi's appointment in March — to the role of interim finance chief, according to the Tuesday filing with the Securities and Exchange Commission. Kroeker will not receive any additional compensation as interim CFO, the company said. Kroeker is stepping back into the role of finance chief as the battery manufacturer looks to chart a path to further expansion amid a spike in power demands driven by the AI boom. The company, which manufactures zinc-powered batteries, is seeking to expand its first production line as well as build a second line, supported by a $303.5 million loan gurantee Eos Energy received from the U.S. Department of Energy in December, Bloomberg reported earlier this month following an interview with CEO Joe Mastrangelo. So far, the company has drawn one $68 million tranche of the loan, Mastrangelo told Bloomberg. Javidi succeeded Kroeker in the CFO role on March 5, according to a company filing at the time, joining from investment firm Kayne Anderson. In accordance with his appointment, Javidi was set to receive an annual base salary of $500,000 and was eligible for a target bonus representing 80% of his base, according to the March filing. He also received an initial grant of time-restricted stock units valued at $2 million, a long-term incentive program equity award valued at $500,000, and a sign-on cash bonus of $5,000 'to assist with legal expenses that you may incur in connection with your transition to Eos,' according to his offer letter. Javidi will be 'entitled to the payments and benefits' detailed in his offer letter for a termination without cause, Eos Energy said in its Tuesday filing. For either a termination without cause or if Javidi resigns with good reason, the former CFO is entitled to receive 'any accrued and unpaid base salary and any unreimbursed business expenses' through the date of termination, to be paid on the next payroll date, per the offer letter. Provided Javidi executes, delivers and does not revoke a release of any claims arising in connection with his termination, he is also entitled to receive 12 months payment of his base salary, any earned, unpaid annual bonus payments, and full vesting of any equity wards, other than those subject to performance-based vesting, according to the offer letter. Kroeker, meanwhile, transitioned to the role of chief commercial officer effective as of March 5, having previously served as Eos Energy's CFO beginning in 2023. Upon taking on the interim CFO role, Kroeker's base salary was not adjusted but his short-term incentive opportunity was increased to 90% from 70%, according to the March filing announcing the previous leadership changes. Prior to joining Eos in 2023, Kroeker served in a variety of key finance roles, including CFO, during a nine-year career at Spark Energy, according to his LinkedIn profile. His past experience also includes stints at Macquarie Energy and Direct Energy, and he began his career at accounting firms including Arthur Andersen and Ernst & Young. The abrupt CFO change comes as the company continues with its plans for expansion, signing a deal earlier this month with a 'large scale developer of data centers' for the use of its batteries, according to Bloomberg. Agreements with such data centers represent approximately 30% of potential deals for the battery maker, CEO Mastrangelo previously told Bloomberg. On Wednesday, the company announced it had secured a strategic order from Faraday Microgrids, to develop a commercial microgrid application on tribal land in California. Eos — which has seen its stock value surge by more than 715% over the past year, according to Nasdaq — has also increased its production in order to meet a customer backlog, according to its earnings report published at the top of the month. Eos Energy reported its highest quarterly revenue figure in the company's history for Q1 2025. The energy firm reported $10.5 million in revenue for the quarter ended March 31, representing a 58% jump in revenue from the prior year period and a 44% jump from the previous quarter. The company also reported a gross loss of $24.5 million, compared to a $21.6 million gross loss in the year-earlier period. The company's operating costs for the quarter surged, growing by 46% from the prior year period to $28.4 million, according to its earnings results. While Mastrangelo cited tariff uncertainty as an 'upward cost pressure into the industry' during the battery maker's Q1 earnings call, the CEO referred to such uncertainties as a 'near-term' rather than a long-term challenge, according to a transcript by Seeking Alpha. Ninety-one percent of its supply chain is based in America, something that can represent a 'key competitive advantage' for Eos, Mastrangelo said during the call, as the Trump administration continues to target aggressive tariffs on foreign imports. While the Trump administration has also announced its intent to cut back on billions in energy-related loans by the Biden administration, 'conversations are progressing as normal' with the current administration in regards to the remaining disbursement of Eos' $303.5 million loan, Mastrangelo previously told Bloomberg. EOS Energy did not immediately respond to requests for comment regarding the CFO shift. Sign in to access your portfolio
