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Lawyers expect SEC to intensify oversight of financial reporting
Lawyers anticipate that under the Biden administration, the U.S. Securities and Exchange Commission (SEC) will strengthen scrutiny of corporate financial disclosures and internal control processes, focusing on pandemic-related reports, ESG performance, and SPAC transactions.
Biden's Tax and Regulatory Plans May Drive Up M&A Deal Costs
M&A activity has shown signs of recovery after a prolonged pandemic-induced lull and may reach a peak in 2021. The Biden administration's proposed tax and regulatory reforms, including raising corporate tax rates and capital gains taxes, could increase deal costs, prompting sellers to seek higher valuations. Analysts believe that 2021 is a window period to complete deals before new regulations take effect.
Four Strategies for Chief Financial Officers to Reduce Cloud Spending Waste
Cloud computing helped enterprises reduce fixed costs and enable remote work during the pandemic, but many CFOs have found significant waste in cloud spending, with typical enterprises wasting up to 35%. This article interviews experts from Protiviti, Ensono, CloudCheckr, and other organizations, proposing four strategies—tag-based budgeting, establishing a cloud center of excellence, mastering cloud concepts, and incentivizing employees to identify waste—to help financial executives balance innovation and financial control.
2021 Outlook: Why and How CFOs Should Lead ESG Efforts
In 2021, CFOs must address the growing scrutiny of ESG metrics from investors, regulators, and the public. Several financial executives and experts point out that CFOs should act as the "chief cheerleaders" for ESG, integrating it into corporate strategy through systematic reporting mechanisms, a focus on long-term planning, and driving cultural change, thereby reducing the cost of capital, enhancing reputation, and mitigating regulatory risks.
Five Trends Chief Financial Officers Need to Focus on in 2021
As the pandemic response enters a new phase, CFOs in 2021 need to refocus on five key trends—ESG disclosure, the LIBOR transition, digital budgeting tools, real-time data capabilities, and hybrid work models—to navigate uncertainty and seize growth opportunities.
Gilead finally starts its M&A engine: over $27 billion bet on oncology in 2020
In 2020, Gilead Sciences invested more than $27 billion in a series of deals to build its oncology franchise, seeking to transform from an antiviral giant into a leader in cancer treatment. This article reviews its deal trajectory, strategic shifts, and market reactions.
SPAC Fever Returns: Should Companies Consider It in Financing Decisions?
As of November 10, 172 SPAC transactions this year have raised approximately $63 billion, with an average deal size of $367 million, far exceeding levels from five years ago. SPACs are not new, but recent increased participation by high-quality companies has made them a viable alternative to IPOs. However, rapid listing comes with pressures from internal controls and compliance, equity dilution, and alignment with sponsors' long-term visions, requiring CFOs to evaluate carefully.
Three Core Competencies Essential for CFOs: Operational Finance, Strategic Thinking, and Communication Skills
Recruiting experts point out that possessing strategic thinking, strong communication skills, and an operational finance background is key for CFOs to attract the attention of CEOs and boards of directors. Traditional promotion paths are gradually declining, while backgrounds in investment banking and public accounting are increasingly valued.
The ESG Wave Reshapes the CFO Role: From Financial Gatekeeper to Sustainable Value Navigator
In 1970, economist Milton Friedman proposed the corporate philosophy of 'profit supremacy,' which dominated corporate governance for the following 50 years. However, driven by climate change and social justice movements, the ESG (environmental, social, and governance) movement is overturning this tradition. This article analyzes how ESG is changing the CFO role—from a mere financial reporter to a guardian of broader stakeholder value—and introduces the core and expanded indicator framework for ESG jointly released by the World Economic Forum and the Big Four accounting firms, as well as the challenges and opportunities CFOs face in implementing ESG.
Pandemic Spurs Remote Work, CFOs Need to Address New Cross-State Nexus Challenges
The pandemic has led many employees to work from home, a practical measure that nonetheless raises complex issues such as cross-state tax nexus, payroll taxes, and individual income tax attribution. States have differing regulatory stances, with some lacking clear guidance, leaving businesses in compliance gaps. This article reviews nexus determination standards, individual income tax rules, employee work location tracking, and congressional legislative progress to help CFOs address potential tax risks.