What does a CFO do?

Hi.
Does anyone know what a CFO does within a bank or how to become one?
For example i want to do S&T within an investment bank so does the progression end at CFO?
Thanks.

Reply 1

username738914

Original post by Jokes

Hi.
Does anyone know what a CFO does within a bank or how to become one?
For example i want to do S&T within an investment bank so does the progression end at CFO?
Thanks.

No.. You'd either end up in the buy side - at a Hedge Fund or Asset Manager - as a portfolio manager overseeing a certain fund (anywhere from £1MM to several billion) or an MD within S&T overseeing a team of traders.

CFOs mainly handle the strategic financial side of a corporation - they deal with planning, M&A, capital raising, accounts and other finance functions. These are the guys that IBD teams talk to when doing deals.

It would be easier for someone in IBD, Big 4 accounting or consulting to end up hear as they are more focused on the corporate finance aspects of business.

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Reply 2

Commercial Paper

Original post by Jokes

Hi.
Does anyone know what a CFO does within a bank or how to become one?
For example i want to do S&T within an investment bank so does the progression end at CFO?
Thanks.

If you want to be a CFO, you're better going via IBD, Corporate Development, Big 4 or Top Tier Management Consulting. Don't think I've ever heard of a CFO come from an S&T background.

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Reply 3

Jokes

Original post by will2348

Roughly how many years of experience is required to be a CFO? and i assume they are wealthier than say a hedge fund manager?

Reply 4

FTSE420

Original post by Jokes

Roughly how many years of experience is required to be a CFO? and i assume they are wealthier than say a hedge fund manager?

Lots, for a big company you will need great credentials and plenty of experience in that specific industry (e.g. CFO of a mining company, you would be expected to have worked in the financial side of another mining company or have done a degree in for example geology). It depends they can be wealthier than a hedgefund manager if they work for a large company.

You would probably want to work at a big 4 if you want to become a CFO and have a degree/background related to the industry of the company you want to be CFO of.

Reply 5

Commercial Paper

Original post by Jokes

Roughly how many years of experience is required to be a CFO? and i assume they are wealthier than say a hedge fund manager?

About 25 years plus, of which at least 5 years will have to be in very senior roles. You can't generalise a figure really, it depends massively on industry, amongst a truckload of other factors.

CFOs have a more consistent income but hedge fund managers usually earn more (but it depends what your the CFO of and what type of hedge fund you are running).

They are not really comparable. Running a hedge fund is a lot more risky than being a CFO - and the roles are completely different; as well as how your salary is structured.

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Reply 6

username738914

Original post by Jokes

Roughly how many years of experience is required to be a CFO? and i assume they are wealthier than say a hedge fund manager?

You assumed wrong. As I said, a PM could be managing anywhere from a few million to a few billion pounds depending on the hedge fund - 20% of the return on that would probably dwarf what CFOs make.

CEOs are a different story and can get much heftier stock option allowances depending on the company.

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