CFO career journey
What investors are looking for from the CFO
What investors are looking for
The cornerstone of building trust with investors is excellent financial reporting – clean, clear, consistent and comprehensive information. Investors expect more than statutory or compliant reporting. Indeed, this alone is a sign of a lack of transparency.
They demand metrics which are broader than just the financials and a forward, realistic view of company performance. In short, investors expect a joined-up story – linking company strategy, financial performance, risk management and operational effectiveness.
- Keep it simple: numbers should be clean and clear, without error. They should be consistent year to year, preferably adopting conservative accounting policies
- Demonstrate how capital is managed
- Go beyond the statutory reporting and provide a comprehensive and well-presented description of the business
- Join up the different aspects of reporting to create a wide view of the business
- Provide the non-financial KPIs that support past and future performance delivery
- Focus on the future: short-term returns are important but not at the expense of delivering on the longer-term plan
- Detail how the business manages risk
- Demonstrate an awareness of wider stakeholders – employees and customers
- Be proactive, timely and front experienced people, such as the CFO, who can explain as well as disclose
- Build trust in the quality of the finance team – give them the opportunity to demonstrate understanding, experience and capability
- Ensure leadership demonstrates integrity at all times