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December-January 2010

Cover Story

In the midst of the financial crisis, Eric Aboaf stepped in to transform the bank’s liquidity and funding profile.

Emerging as winners after the financial crisis, three CFOs—Ford Motor’s Lewis Booth, Platinum Equity’s Mary Ann Sigler and Merck’s Peter Kellogg—aim to thrive in the new normal.

For UPS CFO Kurt Kuehn, the recession was an opportunity to streamline the global package delivery company.

While the worries engendered by the financial crisis have receded, the recession has created new risks and enlarged others, making 2010 no time for complacency.

Multinational corporations are increasingly attracted to Brazil, which has surmounted political instability and hyperinflation to become one of the hottest emerging market economies.

A talk about regulation with U.S. Rep. Barney Frank

Striding past the obvious, more companies pursue integrating green initiatives into their business planning and strategies at top levels, with finance often taking the lead.

Smaller companies, including National Financial Partners, Carlile Transportation and Columbia Sportswear, are turning to technology to drive efficiency and improve cash flow.

What reform means for treasury pros



Features

  • Fast Forward With XML
    As practical applications begin to flow, treasury operations managers see the next giant leap just ahead, when different applications will be seamlessly linked.
  • Pay Pressures Play Both Ways
    Compensation for CFOs at big companies holds up better than expected, but the ups and downs generated by complex, countervailing trends are likely to continue in 2010.
  • Taking on New Dimensions
    Tomorrow’s treasurers will need a global outlook, a strategic mind-set, an analytical approach, broader shoulders, a team spirit and agile technology that can increase visibility and control.
  • When the Well Runs Dry
    As water becomes increasingly scarce, companies are deploying technology and smarts to figure out how to use less.
  • Fear of Diving into Outsourcing
    While recession-induced cost-cutting has moved some companies to offload non-core functions, many hesitate to take the plunge on long-term deals.
  • Reg Q Wipeout
    Dodd-Frank’s repeal of the ban on paying interest on business checking accounts could reshape the competitive landscape.
  • Debt Strategy Dilemma
    Treasurers weigh whether to renew credit facilities at high rates now or risk getting crowded out later.
  • Juicing Receivables
    Receivables securitization not only survived the financial crisis but thrived as funding sources dried up and companies looked to accelerate cash collection.
  • Getting a Handle on Greenhouse Gases
    Although momentum on initiating a U.S. cap-and-trade system has slowed, the first step in the process—a mandate to report greenhouse gases—kicks in this year.
  • Trading on Their Own
    Big companies are still the ones most likely to execute trades in-house, even though new technology has made it easier to set up a trading desk.
  • Herding Social Media
    The use of technologies like blogs, Facebook and Twitter is spreading faster than companies can cast policies to control the risks.
  • The Dollar Climbs Back
    Downtrodden for years, the dollar gains ground over its biggest competitor as euro zone countries face monumental fiscal woes.
  • Downgrading Rating Agencies
    Even with reform, rating agencies have a long way to go to regain their credibility, leaving treasurers to fend for themselves on credit assessments.
  • Keeping Expectations Real
    The U.S. economic recovery endures, but attitudes about the economy need adjusting, three economists say.

Lists

Surveys


For Your Information (FYI)

Washington Update

News Briefs

  • Nasdaq Expands Paid Research Initiative
    In an effort to fill the void in analyst coverage for midsize companies, Nasdaq OMX is expanding an arrangement with Morningstar to allow companies listed on the exchange to obtain analyst coverage.
  • Companies Paying Suppliers More Quickly
    A survey by Aberdeen Group shows that while best-performing companies are trying to get customers to pay more quickly, they are also paying their own bills more promptly.

Q&A

  • Insuring Executives Overseas
    Companies may need to augment their global directors and officers liability coverage with country-specific D&O policies.
  • Re-enter the Dragon
    Companies that ignore China could lose their competitive edge when it comes to economies of scale, growth and market diversification.
  • The Counterparty Challenge
    The recession may be abating, but the need for fully transparent and up-to-date counterparty risk assessment is more critical than ever.
  • Living With Volatility
    As the euro wobbles, companies need hedging strategies to manage foreign exchange risk and protect profits.

Departments

Governance & Accounting

  • Tax Prep Snooping
    Textron aims to appeal a decision easing IRS access to tax work papers, which the agency could use to spot illegal tax shelters.
  • Rightsizing Accounting
    The convergence movement fuels the quest for standards tailored to the reporting needs of smaller companies that are global.
  • SEC Bounty Hunters
    Dodd-Frank and the SEC’s zeal make it easier and more lucrative for whistleblowers to tip the feds off to securities violations.
  • Overseas Tax Watch
    The Obama administration’s proposed changes in international tax regulations could send some corporate headquarters packing.
  • Avoiding Pay Pitfalls
    The SEC pushes companies to analyze whether their compensation plans actually promote behavior that creates risk.
  • SOX Signatory Liability
    The SEC goes after bonuses paid a retired CSK Automotive CEO who, unaware, signed off on fraudulent statements.
  • Treasure in a VAT?
    A value-added tax seems a likely solution to the swelling U.S. deficit, and it would mean a lot of work for businesses.
  • Tax Window Stays Open
    The high court’s decision not to review the Textron case cements IRS access to tax work papers and could prove far-reaching.

Retirement & Benefits

  • Perils of Paying Retail
    A California court faults Edison International for overlooking lower-cost institutional fund shares for its 401(k) plan.
  • Reshaping Primary Care
    Pilot projects suggest boosting the family doctor’s role in getting medical providers to work together cuts costs.
  • Auto IRAs on the Way?
    The Obama administration is proposing that employees without access to 401(k)s be automatically enrolled in an IRA.
  • Revising Target-Date Funds
    The popular 401(k) investments performed poorly during the market meltdown, drawing the attention of regulators.
  • The Mental Health Balance
    Complying with the mental health parity legislation that kicked in on July 1 is more complicated than companies expected.
  • Real Retiree Health Promise
    Coca-Cola is breaking new ground by using a captive insurance company and a trust to finance post-retirement health benefits.
  • Under 26 Coverage?
    Companies struggle with ambiguity as they figure out how to implement the healthcare reform law's first provisions.
  • Mind the Income Stream
    The Obama Administration wants to encourage 401(k) participants to use annuities, but workers show little interest.

Risk Management

  • Snail's Pace on ERM
    As middle market companies struggled through the recession, developing enterprise risk management systems got sidelined.
  • The Art of Buying Insurance
    What to insure, how to insure it and how much coverage is needed are simple questions with often very complicated answers.
  • Domestic Reinsurance
    New York State plans to revive its insurance exchange, but some question whether the additional capacity is needed.
  • Pollution Coverage Alert
    Few companies purchase insurance against losses caused by pollution, but the Deepwater Horizon oil spill may change that.
  • Expanding Risk Oversight
    More companies look at setting up special risk committees on their corporate boards to watch enterprise risk management.
  • The Current State of ERM
    Natural gas processor Phoenix Park considers even remote risks, but most companies don’t look beyond the ordinary.
  • Distracted Driving Costs
    Worried about accidents, companies are telling employees not to use electronic devices while driving on the job.
  • Solar Storm Warning
    A peak in sun disturbances over the next few years could mean prolonged outages in power grids and communications networks.

Tools & Technology

  • Taming Spreadsheets
    New software products aim to help companies get the whip hand over ubiquitous but risky spreadsheets.
  • Data Goes Incognito
    New tokenization technology lets companies substitute unrelated numbers that can’t be linked back to customers’ credit cards.
  • Catching Data Degradation
    New product from IBM aims to sample data and identify problems in companies' information supply chains.
  • Digging for FX Positions
    The latest release from FiREapps has the flexibility to interface with any accounting system to search for foreign exchange exposures.
  • Watching the Insurers
    Marsh launches a Web portal that helps corporate risk managers monitor the solvency of their carriers.
  • Six Steps to Better IT GRC
    Securing corporate IT systems is crucial, but there are ways to make that effort more productive and less costly.
  • Sorting Out Sales
    Changes to revenue recognition rules may be beneficial but will lead to accounting headaches that new software can relieve.
  • XBRL Tags Pile Up
    The mandate to tag the details in financial statement footnotes could mean a lot of work for big companies this year.

Treasury Management

  • Ready, Set, EBam
    Processes must be automated for companies to achieve great efficiencies when SWIFT's connectivity for bank account administration launches.
  • OTC Derivatives Lessons
    The Coalition for Derivatives End-Users fights proposed regs by explaining how companies use the hedging tools.
  • New Game of No TAG
    As banks opt out of unlimited FDIC protection on corporate accounts, treasurers scramble to find safe havens for cash.
  • Better Supply Chain View
    Clouds offer real-time transparency into a company’s working capital and more opportunity for dynamic discounting.
  • On-the-Go Treasury
    Workstation providers are rolling out applications that let users access functionality via their mobile devices.
  • Working on the Cash Train
    Companies like Amtrak are tracking more granular information on more factors affecting cash flow and how they correlate.
  • Reengineering With SaaS
    Horizon Blue Cross/Blue Shield's treasury put together two hosted software solutions to ramp up efficiency and visibility.
  • Saving Trees and Fees
    Chico's reduced its costs and its monthly pile-up of paper statements by going electronic and analyzing its bank charges.

Careers

Profile

  • Full Agenda Ahead For RIMS Prez
    RIMS’ nearly 10,000 members represent more than 3,500 business, charitable and government entities globally. It has 81 chapters in the U.S., Canada, Mexico and Japan.
  • Charging Ahead
    After cutting costs while continuing to invest in new technology, MasterCard CFO Martina Hund-Mejean looks to the future of payments.

People on the Move

  • Careers
    Matthew Foehr; Greg Smith; Frank Dellaquila; David Reith; John Gebo; Peter Hancock; Julie Connors; Krystyna Lack; Scott Ullem; Steven Wood; Jeffrey Harris; J. Scott Di Valerio
  • Careers
    David Denton; Peter Klein; Jay Rasulo; Edward Fitzpatrick; Robert Falzon; John Fleurant; Susan Carter
  • Careers
    William Weideman; Jason Aiken; Christopher Swift; Jeff Agosta; David Turner; John Sheehan
  • Financial Executives: Keeping Track
    Douglas Braunstein; Robert Biglin; Robert Hombach; John Thomas III; Eric Hession; Michael Lucareli; Maximiliane Straub; Mitchell Butier; Alan Haughie; Sachin Mehra; Michael Neborak; Brandon Pedersen
  • Careers
    Ruth Porat; Ronald Dissinger; Robert Woods; Catherine Neel; Juan Figuereo; Thomas Mangas; Doran Schwartz; Steven Bensinger; Kenneth Luk; Ronald Pasek; Dennis Norman; Carey Hendrickson

Opinion

Editor's Desk

  • Yo-yo Days
    Finance execs are still cautious about the outlook for the economy.
  • Getting Past Future Tense
    As the wait continues for an economic rebound, North American companies are less optimistic than those overseas.
  • The Big Fix
    The reform of the financial regulatory system, and the risks that may entail, are top of mind for finance executives.
  • Bird's-Eye View
    A new book argues that companies' biggest risks involve their assumptions about everything from the business environment to the outlook for their industry
  • Survival Strategy
    Recovering from disasters takes time, whether it's the financial crisis or the Gulf oil spill.

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