EUROPEAN CFO BAROMETER 2011An international survey on professional responsibilities,qualifications and career opportunities

Supporting partners:

Table of contents

Editorial 5

Executive summary 6

Methodology and data pool 8

CFO remuneration levels differ greatly by country 10

CFOs express little confidence in the euro 15

Finance departments introducing new policies 18

CFO’s self-image: senior manager with international focus 23

CFOs want to improve their strategy skills 28

EUROPEAN CFO BAROMETER 2011

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Dear reader,

I am pleased to present you the results of the European CFO Barometer 2011.

On behalf of the entire Michael Page Group, I would like to thank each and every one of the 2,407individuals – both Chief Financial Officers (CFOs) and Finance Directors (FDs) – who participatedin the survey. It has been a most rewarding collaboration. The results we have received providevaluable insights into the CFO profession in continental Europe.

The Michael Page Group takes great pride in being a global player with extensive expertise,notably in finance recruitment. We interact professionally with CFOs and FDs as both our clientsand candidates. As a result, the outcomes of the CFO study not only enrich our know-how butalso help us provide our stakeholders with better service.

The results of the survey show considerable differences in remuneration as well as in careeropportunities – especially applying to men and women. Female CFOs still earn less than their male colleagues. In a number of countries in continental Europe, finance professionals have a greater chance of becoming CFO at a younger age. In contrast, the most competitive remuneration for CFOs can be found in countries where work experience and age are criteria for a career in this profession.

In addition to quantitative results, the study also provides subjective information: CFOs, forexample, share their aspirations for the future as well as their thoughts about what their colleagues might say about the CFO’s role in the company. The survey participants also gave details about the competencies they consider essential for their continued professional development. In the study, we also took the opportunity to evaluate the perceptions of CFOs and FDs about the current economic environments in their countries.

The findings of the CFO Barometer 2011 will help us anticipate the ongoing development ofthe CFO’s role in the future, and we are pleased to have the opportunity to share them with you.On this positive note, I invite you to join me in reading the study and wish you every successin your professional future!

Yours faithfully,

Charles-Henri DumonManaging Director Continental Europe and The Americas

Editorial

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I am pleased to present to you the new European “CFO Barometer” survey for 2011.

ACCA is delighted to be a partner of this project as the results provide valuable insight in the CFO`s environment of which over 70 % of members in Poland are holding executive finance roles.

The role and perspective of CFOs is becoming more and more important during these turbulent economic times where the opinion of the CFO is crucial to making business decisions. This role is now being recognised across all businesses and this is good news for those of us with a specialised finance background.

In addition to providing appropriate financial and strategic advice, the CFO is increasingly called upon to demonstrate a leadership position. It is not so long ago that the finance function in an organisa-tion acted as a support to the decision making process and leadership functions, now it is central to them. Because of this, CFOs and other finance professionals must lead from the front and they must communicate with many stakeholders, both inside and outside the organisation. The CFO must also be excellent at building and managing relationships. In fact, many market watchers and investors are interested in the relationship between the CFO and CEO and the rest of the board.

The result of the survey shows that almost half of the CFOs say general management and strategy skills are among the top three most important which are critically important to them, particularly for those who aspire to attain the position of CEO. ACCA puts these skills, in parallel to the technical financial skills, into the highest regard. Therefore ACCA qualified CFOs are successful and often take CEO positions.

The survey also shows that almost half of CFOs would be willing to move to a new country for an attractive job. ACCA is a highly regarded international qualification which gives members a solid financial foundation and enables them to work in a country of their choice. I encourage you to read the European CFO Barometer survey and I wish you and your organisations every success for the future.

Best wishes,

Ilona WeissPresident of ACCA Poland

Who we areACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. What we do We support our 147,000 members and 424,000 students throughout their careers, providing services through a network of 83 offices and active centres. Our global infrastructure means that exams and support are delivered at a local level, directly benefiting stakeholders wherever they are based.

Our qualificationsOur globally relevant qualifications will give you an excellent start in core accountancy skills, or you can gain more specialist knowledge – depending on your ability and the qualifications you already have. ACCA qualifications provide everything you need – at any level – to build a successful career in finance.

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Executive summary

More than 2,400 Chief Financial Officers (CFOs) and Finance Directors responded to an

international survey conducted by Michael Page, providing information about their job

responsibilities, qualifications and career opportunities. CFOs1 have a broad range of re-

sponsibilities that also increasingly require management and strategy skills. The prominent

position held by the CFO within the company is reflected both in the CFO’s collaborative

relationship with the CEO and the CFO’s salary. Many CFOs have ambitious career goals.

CFO remuneration levels differgreatly by country

In most companies, the task of overseeing com-pany finances falls into the hands of a few experts. In reflection of this, almost half of the surveyed CFOs work in finance departments with fewer than 10 employees. This applies in particular to CFOs of small companies with fewer than 100 employees. Large companies with 5,000 or more employees, however, do not necessarily maintain large finance departments.

The smaller the finance department, the more multifaceted the CFO’s sphere of responsibility.Most respondents perform administrative tasks alongside their core responsibility of oversee-ing company finances. Almost half of the CFOs also handle legal issues. Moreover, many CFOs assume responsibility in the areas of IT, Human Resources, Procurement and Supply-Chain management.

In most companies, the CFO enjoys a promi-nent position. This is reflected in the CFO’s posi-tion in relation to the CEO as well as in a CFO’s remuneration. Two-thirds of the respondents describe their relationships with the CEO as col-laborative and team oriented. Generally speaking, CFOs earn more than €60,000 a year (including bonuses and benefit packages). A total of 41 per-cent of the respondents earn at least €120,000, and 13 percent earn at least €200,000.

On average, female CFOs earn less than their male colleagues. Income also increases in relation

to professional experience and company size. CFOs in Switzerland, Germany and Austria earn the highest salaries. The remuneration levels in Portugal, Spain, Sweden and Poland are com-paratively low. As a CFO’s salary increases, the performance-based component of his or her remuneration often tends to rise as well.

CFOs express little confidencein the euro

The majority of the surveyed CFOs are upbeat about the performance of their own companies.This outlook tends to be more positive if a CFO also has a positive opinion about the overall eco-nomic environment in his or her country. This is particularly the case in countries with healthy GDP growth rates, including Turkey, Poland, Russia, Germany and Sweden. In contrast, CFOs in Portugal, Spain and Italy have a negative opinion about their respective economic environments. A glance at the International Monetary Fund forecast reveals that these countries can indeed expect low or even negative GDP growth during the current year.

A majority of the surveyed CFOs express little confidence in the euro. 78 percent say they have “little” or “no” confidence in the currency. CFOs from countries where the euro was introduced on Jan. 1, 2002, are especially critical. In contrast, CFOs from countries that are not part of the euro-zone – for example, Russia, Sweden, Switzerland and Turkey – tend to have more confidence.

Finance departments introducing

1) In this study, the acronym CFO is used to refer to both Chief Financial Officers and Finance Directors.

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new policies

CFOs are gearing up for changes in their compa-nies and finance departments this year. According to the respondents, 54 percent of companies intend to improve their procurement processes. Additional projects include the implementation of new IT and ERP systems, internationalization and the search for new supplies.

According to the surveyed CFOs, new policies will be implemented in 37 percent of the finance departments in 2011. Centralization is planned in a further 26 percent. More than 1/4 of finance departments are planning to create permanent jobs. This will occur in companies that were described as “performing” by the respondents and in those that operate in healthy economies. In contrast, the job situation in the finance depart-ments will tend to remain grim in Spain, Portugal and Italy this year.

CFO’s self-image: senior managerwith international focus

An examination of the individual profiles of the surveyed CFOs reveals that most CFOs have many years’ experience in their positions. Only around 1/5 indicate they have been CFO for less than 5 years. Most of those surveyed CFOs were between 30 and 40 when they assumed their positions. CFOs younger than 30 now have and have had notable opportunities only in Russia, Poland and Portugal.

In particular, CFOs who work at companies with at least 5,000 employees frequently have inter-national experience: 3/4 of them have lived and worked outside their home countries – 17 per-cent for at least 10 years. In contrast, 56 percent of the surveyed CFOs in companies with fewer than 100 employees have not (yet) gained interna-tional experience. CFOs who have worked abroad almost always speak English fluently. In contrast, they do not necessarily speak the language of the country where they work. Only about 60 percent of the surveyed CFOs in Russia and in Italy can speak the native language.The majority of CFOs believe they are perceived

as senior managers or team leaders. Only 15 per-cent say their colleagues would describe them as entrepreneurs. This is very frequently the case for CFOs from Germany.

CFOs want to improve theirstrategy skills

Many CFOs have ambitious career goals that they would like to achieve within the next 2 years. In reflection of this, 17 percent of the respondents say they want to become CEO or Managing Director. A further 46 percent expect to assume new responsibilities and tasks in their current positions. Accepting a consulting or interim man-agement position appears to be less appealing.

Fifty-four percent of the CFOs indicate that bet-ter pay is one of the main reasons they would accept a new job. This applies in particular to respondents who are still at the beginning of their careers and to those whose current salary is comparatively low. Additional criteria exerting considerable influence on career choices include the (prospective) employer’s strategy and new prospects as well and the possibility of greater scope of responsibility. An international environ-ment is also appealing to more than 40 percent of CFOs. This is particularly the case for CFOs who have already worked abroad.

Almost half of CFOs would be willing to move to a new country for an attractive job. Most other CFOs would at least be willing to move to a new city or region. The willingness to work abroad is particularly strong in the group of CFOs who have set their sights on becoming CEO or Managing Director and those who have already worked abroad.

To advance their careers, CFOs believe that they must improve their strategizing and general management skills. More than four in ten CFOs think they need to enhance their presentation and communication skills. Language skills play an important role, particularly in the leisure and business-services industries.