CFO Studio Magazine with Bernd-Peter Bier, CFO, Bayer

MONEY BUSINESS 4th QUARTER 2015 WWW.CFOSTUDIO.COM 21 Navigating the “Seven C’s” Pay Disclosure I t came. It went (almost). And now it’s back in a big way. Bitcoin, once the digital currency of choice for online drug dealers and financial swindlers, has now become legitimized; and it is poised to change the face of the 21st-century economy. Now there is a method of manipulating and moving cyber currency that is vastly faster, cheaper, and more secure. In an indication that Bitcoin is here to stay, NASDAQ became the first established financial institution that will use the digital currency, planning to begin in November using Bitcoin to trade shares of pre-IPO companies like Uber and Airbnb. Forbes reports that Internet start-up Chain.com has developed an application known as the “blockchain.” Using it, Bitcoin records will be maintained on a shared online ledger on a network of worldwide companies. The ledger will be updated through blocks of Bitcoin transfers occurring every 10 minutes, hence “blockchain.” Even the likes of Citigroup and Barclays acknowledge that, at some point in the future, the days of the big banks’ high exchange rates and float will be gone. Credit and debit card fees may also eventually fall to Bitcoin, as the shared ledger system of the blockchain eliminates the middleman’s cut. As a result, every major financial institution is now exploring the viability of Bitcoin—essentially planning for their own disruption. Though Bitcoin seems poised to streamline the financial system, how completely the average consumer is willing to embrace cyber currency remains to be seen. Bitcoin Redux F or CFOs and other top executives, professional change is inevitable. Big career transitions can include having to embrace new roles, new technologies, new strategies, and living in a new geographic location. But even seasoned professionals accustomed to a fluid professional life find personal change difficult. According to organizational behavior expert Linda Brimm, writing in the Harvard Business Review, C-suite executives facing transition need to navigate through the “Seven C’s:” Complexity – Considering all aspects and issues at play Clarity – Gaining insight, understanding, and the ability to prioritize Confidence – Believing the change will be handled successfully Creativity – Finding innovative solutions to any bumps in the road. Commitment – Taking concrete steps Consolidation – Saying good-bye to the previous role and embracing the new one Change – Fully embracing the new experience and making it work The ascending nature of these steps ensures that the proposed transition does not become an overwhelming obstacle to the next step in an executive’s career. Sticking to the process will provide a road map for embracing current and future change. I n a hotly contested ballot back in August, the SEC passed new rules requiring publicly held companies to disclose the ratio of their chief executives’ pay to that of the company’s median wage earner. As reported in The Economist, the regulations, which are tied to the Dodd-Frank Act of 2010, are set to take effect in 2017. Critics argue that the new reporting rules are nothing more than a shaming tactic lobbied for by special interest groups like the AFL-CIO. SEC commissioners supporting the rule feel it will give valuable insight into a company’s governance and fiscal health. Those analyzing the new mandate acknowledge there are many loopholes, and say the ratio formula may not give an accurate picture of a company’s pay-scale diversity. Until the first companies begin complying in 2017, the usefulness and necessity of the SEC ruling remains uncertain. Jay Roberts VirMedica Barry Lederman Halo Pharmaceuticals Bret Richter The Madison Square Garden Co. Nigel Rose Gain Capital Holdings Lawrence A. Kenyon Oncobiologics Taylor Kamp Marlin Business Services Mark McGivney Marsh & McLennan Daniel J. Cregg PSEG John Stetson Majesco Entertainment Gunther Mertens AGFA Graphics Regional President For North America David Ritter AGFA Graphics David Marberger Prestige Brands Holdings Kudos, Congratulations, and Reasons to Celebrate Email new CFO info to Christopher.Borgese@CFOstudio.com Join us in congratulating CFOs: 500,000 10th Percentile Median 90th Percentile 400,000 300,000 200,000 100,000 0 CFO Average Compensation Base Salary Only 2014 177,928 315,947 474,515