Veterans Favored For Finance Chiefs -- WSJ
August 27 2019 - 3:02AM
Dow Jones News
By Nina Trentmann
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (August 27, 2019).
Companies picking new finance chiefs of late appear to be
telegraphing a message in their choices: Playtime is over. This is
a job for grown-ups.
Big companies are increasingly turning to seasoned veterans for
the top finance seat as they face challenges stemming from
technological disruption, changing consumer tastes and an uncertain
economic outlook, corporate recruiters say.
The latest -- and perhaps starkest -- example: Consumer-goods
giant Kraft Heinz Co., which on Monday appointed its former finance
chief Paulo Basilio to the role of chief financial officer again.
Mr. Basilio, 44 years old, replaces David Knopf, who was the
youngest CFO at a Fortune 500 company when he took the job at age
29 in 2017.
The average age of CFOs has increased significantly this year,
according to Crist | Kolder Associates. Finance chiefs at Fortune
500 and S&P 500 companies averaged 52.8 years in 2019. That's
five years older than the average over the previous 10 years,
according to the recruiting firm's data. It's also the first time
the average has eclipsed 50 in at least 15 years.
"This is not the time for first-time CFOs," said Cathy Logue, a
managing director at executive recruiter Stanton Chase. "At a time
when an industry and a company is under tremendous pressure, you
want a CFO at the helm who has experience and who can help bring
the business back on track."
Kraft Heinz is betting that's what will make Mr. Basilio
successful. Mr. Basilio served as finance chief of H.J. Heinz Co.
from 2013 to 2015, before the company's merger with Kraft Foods
Group Inc., and he led the finance function of the merged entities
from 2015 to 2017.
Kraft Heinz in recent quarters struggled to increase sales and
wrote down the value of its brands, and its share price has fallen
about 40% since the beginning of the year. It also faces
investigations over its accounting practices, among other
issues.
Mr. Basilio will report to Chief Executive Miguel Patricio, a
former Anheuser-Busch InBev SA executive who took the reins at
Kraft Heinz in June.
"The new CEO is an outsider and needs someone who knows the
business," said Laurent Grandet, a senior analyst at Guggenheim
Securities. "The departing CFO was not experienced to help him [Mr.
Patricio]. Experience comes with age."
Tesla Inc. in January named Zach Kirkhorn as its finance chief.
Mr. Kirkhorn was 34 years old at the time of the appointment. But
recruiters don't expect a youth movement in the CFO ranks.
"Companies and boards want somebody to come into the finance
chair that has CFO experience and that doesn't need training," said
Peter Crist, chairman of Crist | Kolder Associates.
Companies including Coca-Cola Co., Chevron Corp. and Tapestry
Inc., for instance, recently appointed CFOs in their mid-50s with
extensive finance experience.
John Murphy was 57 years old when he became Coca-Cola's finance
chief in March. He was chosen for the CFO role because of his
experience, a spokesman said.
Chevron's new finance chief, Pierre Breber, was 54 years old
when he was named and his experience was one of the reasons for the
company to name him, according to a spokesman.
"Pierre is uniquely qualified to hold this position, having
served in senior finance roles and also in operating roles," the
spokesman said.
Tapestry's new finance chief, Joanne Crevoiserat, was 55 years
old when she took the job this month. "Joanne is a talented
executive with over 30 years of deep finance, operations and
strategy experience within established retailers and global
brands," Tapestry CEO Victor Luis said in a statement.
Write to Nina Trentmann at Nina.Trentmann@wsj.com
(END) Dow Jones Newswires
August 27, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Kraft Heinz (NASDAQ:KHC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kraft Heinz (NASDAQ:KHC)
Historical Stock Chart
From Sep 2023 to Sep 2024