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CFOs: We’ll Start Hiring Just as Soon as We Hit Our Unreachable Revenue Goals

Posted on by Caleb Newquist

Sound good to everyone?

Chief financial officers at large North American companies polled by Deloitte LLP said it would take a 20% surge in revenue before they felt comfortable adding to their payrolls.

The quarterly survey released Thursday found that nearly half of respondents would seriously consider adding employees if revenues rose 20%, but few would be moved by a 5% increase. A 10% bump in revenue would only be a major hiring consideration for 11% of CFOs.

Worse yet, perhaps, actual growth isn’t expected to reach such heights: respondents estimate top line growth at North American companies will be just 8.2% this year. (This is, however, a rosier picture than the fourth quarter when respondents forecast 6.5% for the coming year.)

And don’t bother trying to bait them with tax reform, revisions to the healthcare reform bill or payroll tax incentives because they’re all non-starters.

CFOs: Revenue Surge Needed to Boost Hiring [WSJ]

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Will Apple’s Accounting Encourage Others to Drop Non-GAAP Measures?

A tipster pointed us to Apple’s transcript from last night’s earnings call, noting that the company has indicated that they will no longer be providing non-GAAP measures. This is a result of the solid that the FASB did for Apple back in September:

We are very pleased by the FASB’s ratification of the new accounting principles as we believe they will better enable us to reflect the underlying economics and performance of our business and therefore we will no longer be providing non-GAAP financial measures.


Our tipster noted that since using non-GAAP measures are a commonly used by companies and analysts, Apple’s declaration that they would not be “providing non-GAAP financial measures,” could potentially change things. It’s one thing if say, Koss were to say they’re not going to provide non-GAAP numbers, but this is Apple.
The company enjoys a top of the mind position, so other companies may embrace this method of engaging with analysts and other users. And since Apple isn’t shy about controlling the information they provide (e.g. Steve Jobs’ pancreas) this seems to be another way for them to dictate the information they are providing.
It’s not a stretch to say that many companies try to emulate Apple; whether or not they will emulate Apple’s financial reporting methods remains to be seen. Strange, because we figured they were just innovative on the gadget front.

Any Budding CFOs Who Had Dreams of Being an Astronaut Should Get Their Résumés in Order

Virgin Galactic is racing to be the first company to launch a commercial space flight and since these sort of things usually need someone that’s good with numbers, the company is CFO shopping:

Virgin Galactic, a leader in the race to launch commercial space flights, is looking to hire the first CFO in a brand-new industry sector. “It’s a historic thing,” says George Whitesides, the former NASA chief of staff who is the company’s chief executive. “The executives here are thinking back to the early days of aviation, when companies like American Airlines were getting started. For the right person, it would be tremendously exciting.”

Naturally, this particular job isn’t for just any ol’ finance and accounting sage. You need experience in aerospace, raising both private and public money, and a little exuberance might be nice:

The right person will have strong experience in raising funds from private-equity investors and public offerings, ideally some prior experience or relationship with the aerospace industry, and a hint of merriment.

Virgin Galactic wants a CFO who “fits the Virgin brand,” which means someone who is hard-working but also dynamic and able to integrate work and fun, à la company founder and committed thrill-seeker Richard Branson. Yes, this will not only be the first CFO in a new sector, but quite possibly the first one to rocket into space.

So for you buttoned-up types, just keep moving along. Virgin will be needing for someone who won’t be ashamed by wearing adult diapers and projectile vomiting in front of the billionaire boss.

Virgin Territory for One Lucky CFO [CFO]

Weatherford CFO Not Taking $500 Million Accounting Error Well; CEO Slightly More Upbeat

WTF WFT CFO Andrew Becnel needs a hug:

Weatherford International Ltd. Chief Financial Officer Andrew Becnel called a $500 million accounting error disclosed by the oilfield-service company late Tuesday an “embarrassment,” the damage of which is “impossible to quantify.”

But you know who’s taking this whole snafu in stride? CEO Bernard Duroc-Danner that’s who! BDD told investors on a conference call today that nothing is fucked and that this will all be yesterday’s news in no time:

Chief Executive Bernard Duroc-Danner said there is no risk of a U.S. government investigation or of any tax penalties or fines related to what he characterized as a mistake in calculating the tax rates on dividends moved from one subsidiary to another.

Geez. Give the SEC some credit wouldja? Just because they missed a few things here and there doesn’t mean they won’t ask any questions about your material weaknesses.

Weatherford Finance Chief Calls Accounting Error an ‘Embarrassment’ [WSJ]