Annex Newsflash 2005-04
February 10, 2005

Slaying the "The Most Powerful Woman in America"

Carly's Fickle Fans 

CFOs Can Make or Break the CEOs

Whose responsibility is it to manage investor relations and stock value?

First, the CEO's, of course.  The buck always stops at the top office.  But the principal hands-on responsibility for such function rests with the CFO office.  In HP's case, that's the man who has now temporarily succeeded Fiorina as acting CEO, a 36-year HP veteran, Bob Wayman.  Here's what we said about the CEO/CFO relationships back in June, when we warned Fiorina that the CFOs can make or break the CEOs:

CFOs Can Make or Break the CEOs

PHOENIX, June 14 - They tend to sink or swim together.  The CEOs and CFOs seem inextricably linked, as if connected by an umbilical chord.  Rarely does a CEO find enough courage to cut the chord and cast his/her CFO pal overboard.   Not even after a CFO becomes a part of the ballast that's weighing down the corporate ship.  But there are exceptions.  As usual, they serve to confirm the rule.  

This editorial is about both... the rule and the exceptions; about the CEOs and the CFOs; and about their sometimes peculiar relationships.  It is based on more than 34 years of personal dealings with CEOs and CFOs of the largest computer companies in the world.  It is a digest of lessons we can learn from history.  

Our clients and friends may find the editorial interesting; some even amusing.  But the current CEOs had better play close attention.  They may find its key message vital to their long-term survival.  For, "those who do not learn from history are doomed to repeat it," as an old saw goes.

(An excerpt from “Beware Your CFO!”, June 2004)

Happy bargain hunting!

Bob Djurdjevic

For additional Annex Research reports, check out... 

2005 IT:  Carly's Fickle Fans (Feb 2005); CSC: Gearing Down on Purpose (Feb 2005);  EDS: Grossly Overpriced Stock (Feb 2005);  IBM Historical Update: 2004 Shot in the Arm (Feb 2005); New HeadTurners Series #1 (Feb 2005); IBM: A Crescendo Finale! (Jan 2005); Accenture: Strong Finish, Better Start (Jan 2005); Annex Coverage 2004: IT Services Dominate (Jan 2005)

2004 IT: EDS: The Titanium Stock (and other Wall Street tales) (Dec 2004); IBM PC: Good Riddance (Dec 2004); Fujitsu: Recovery Continues (Nov 2004);  IBM Server Renaissance (Nov 2004);  HP Hits Home Run (Nov 2004); Capgemini: Revenue, Stock Soars (Nov 2004); EDS: Jordan's Swan Song? (Nov 2004);  To Russia with Love and $ (Oct 2004); IBM: Slow Quarter No Longer (Oct 2004); Accenture: Revenues, Profits Up, Stock Down (Oct 2004); Capgemini: A Takeover Target? (Oct 2004); Sellout of America (Oct 2004); Spy Wars (Sep 2004); Outsourcing Boomerang (Sep 2004); EDS to Cut Up to 20,000 More Jobs (Sep 2004); Capgemini Stock Plummets on Unexpected Loss (Sep 2004); HP Savaged by Wall Street (Aug 2004); Moody's Lowers the Boon on EDS (July 2004); HP: Delivering Value Horizontally (June 2004); Accenture: Revving Up a Notch (June 2004); Beware Your CFO! (May 2004); IBM: Changing of the Guard (May 2004); Capgemini: Texas-size Home Run (May 2004); Following the Money (May 2004);  EDS: On a Wink and a Prayer (Apr 2004); HPS Wins by a Nose! (Octathlon 2004); Accenture: Burning the Track (Mar 2004);  IGS: "Crown Jewel" Restored? (Mar 2004); HP: Still No Cigar (Feb 2004); Cap Gemini: Another, Smaller Loss (Feb 2004); CSC: Good Quarter Gets Boos (Feb 2004); EDS: "Hot Air Jordan" Flaunts Flop as Feat (Feb 2004); IT Industry: Whither Goeth It? (Jan 2004); Cronyism Is Alive and Well at EDS" (Jan 2004)

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