CFO, The Magazine for Senior Financial Executives articles from November 1998

CFO, The Magazine for Senior Financial Executives archives from November 1998

Protect the spillover effect. (health insurance)
November 1, 1998... WHY HEALTH CARE INNOVATION CURES COMMUNITIES - AND WHY IT MUST BE PROTECTED. At this time of year, many employers reassess their current employee health benefits, and actively explore alternatives that promise greater affordability,...

Inflating golden parachutes. (financial benefits for executives)
November 1, 1998... Pulling the ripcord on golden parachutes can be an expensive decision for some executives whose weighty contracts trigger hefty excise taxes. But a recent survey by New York-based human-resources consultancy William M. Mercer Inc. finds that, as...

The SEC decries special charges. (earnings restatements and financial reporting concerns)
November 1, 1998... Excite Inc. recently paid $96 million to Netscape in a two-year Internet-access deal, but then wrote off two-thirds of the new "asset" in the same quarter in an effort to reduce the deal's drag on earnings. Excite is not alone in attempting such...

Starwood's stock sees stars. (Starwood Hotels and Resorts Worldwide Inc)
November 1, 1998... To deal with major changes in its assets, federal tax law, and the business climate, management at Starwood Hotels & Resorts Worldwide Inc. felt it had to change. But its proposed transformation has alienated investors and left analysts baffled....

Calling the right exchange. (Bell Atlantic Corp.s' offering of exchangeable notes)
November 1, 1998... Bell Atlantic notes offer a blueprint for monetizing noncore assets without a pooling mess. Companies looking to jettison noncore assets on a tax-free basis without riling the regulators might ring up Bell Atlantic Corp. for its answer:...

As good as it gets. (results of compensation survey for financial executives in 1997)(includes related article on survey details)(Cover Story)
November 1, 1998... THE 1998 COMPENSATION SURVEY In terms of compensation, these are the good old days. A 10 percent spurt in short-term incentive payouts gave a solid boost to compensation packages for finance executives in 1997. The average CFO took home...

The globe and a hard place. (foreign business ventures in a global financial crisis)
November 1, 1998... Growing turmoil in emerging markets has U.S. companies gaining control over their foreign ventures. But will that compound the risk? Even as the global financial crisis deepens, many U.S. companies see the current malaise as a fine opportunity...

The road to excess. (joint ventures and government corruption)(includes related article on bribes)
November 1, 1998... Joint ventures are an effective vehicle for bribing foreign officials. But with investors starting to notice, so may the authorities. The turmoil that has swept Asia, has descended upon Russia, and now threatens Latin America raises a question...

Thirsting for credit. (bank loans)(includes related article on bank mergers)
November 1, 1998... With banks focusing on profits and mergers, and with markets in a whirl, a credit crunch looms. When Keith McBride and his treasury team at The Mead Corp. sat down last year to renew the Dayton-based company's $500 million revolving line of...

Straight from the screen. (electronic procurement systems)
November 1, 1998... Newfangled software may revolutionize procurement, but not without some old-fashioned reengineering. Holger Huels, CFO of pharmaceuticals giant Boehringer Ingelheim, has a dream of freedom - from paper. "I really don't want to see paper...

Unloading credit risk. (managing credit derivatives)(includes related article on credit derivatives)
November 1, 1998... Credit derivatives aren't just for banks anymore, but the new instruments aren't without their own faults. Confident about your company's ability to weather a downturn, but not so sure how your customers or suppliers would fare? You could...

USG remodels its balance sheet.
November 1, 1998... Why Triple B to this building-materials supplier means: Big, Bad, and Back. Hanging on the wall of Rick Fleming's office at USG Corp. headquarters in Chicago is a mock cover of this year's annual report. The bold display type features three...

Superfund struggles. (environmental liability insurance)
November 1, 1998... Old environmental liabilities can give even the most powerful company fits. Just ask GE. With $8 billion in net income last year, General Electric was the nation's most profitable corporation. And it is considered one of the best managed as...

Pay for Performance.
November 1, 1998... It's official--the good times are here. Or at least they were last payday. Our latest compensation survey (see "As Good as It Gets," page 40) indicates that average CFO total cash compensation has jumped to $362,100, 6 percent more than in our...

Inflating Golden Parachutes.
November 1, 1998... Pulling the ripcord on golden parachutes can be an expensive decision for some executives whose weighty contracts trigger hefty excise taxes. But a recent survey by New York- based human-resources consultancy William M. Mercer Inc. finds that,...

Is the SEC on the Defensive?
November 1, 1998... Here's another twist to insider trading laws, courtesy of a California federal appeals court. When deliberating trial outcomes, jury members must decide whether or not defendants factored their knowledge of nonpublic corporate information into...

The SEC Decries Special Charges.
November 1, 1998... Excite Inc. recently paid $96 million to Netscape in a two-year Internet-access deal, but then wrote off two-thirds of the new "asset" in the same quarter in an effort to reduce the deal's drag on earnings. Excite is not alone in attempting...

Starwood's Stock Sees Stars.
November 1, 1998... To deal with major changes in its assets, federal tax law, and the business climate, management at Starwood Hotels & Resorts Worldwide Inc. felt it had to change. But its proposed transformation has alienated investors and left analysts...

IRS Ruling Irks Taxpayers.
November 1, 1998... Has this year's IRS Restructuring and Reform Act created a more flexible Internal Revenue Service? Not likely, say tax experts. In fact. the IRS recently issued a notice that could make resolving tax disputes more complex, sparking criticism by...

Blame the System.
November 1, 1998... Sue 'em all and let the courts sort it out. That appears to be the motto of a former $5 billion wholesale drug distributor that has sued everyone connected to the installation of a computer system it blames for its financial ruin. A...

Euro Travel 2000.
November 1, 1998... Planning a business trip to Europe in 1999? American Express Co. doesn't want you to leave home without its new eurodenominated travelers' checks. AmEx will begin issuing the checks on January 1, 1099, to help travelers during the...

Financial Job Network.
November 1, 1998... www.fjn.com Need a new job? If you can't find a suitable one on CFO magazine's Web site, try this one. The Financial Job Network claims to be the first Web site devoted exclusively to global job opportunities for finance executives. It...

Exec-U-Net.
November 1, 1998... www.execunet.com. Exec-U-Net is another online job search and career site. Although it is not specific to finance, it does cater to senior-level executives, particularly those with salaries of $100,000 and up. The site claims to post about...

For Form 1099's Sake.
November 1, 1998... As readers know administering Form 1099s can be a huge headache. Generally, a form must be submitted to the IRS for annual payments (except salaries and product purchases) to a nonincorporated entity exceeding $600, for anything from interest...

May the Sales Force Be with You.
November 1, 1998... As sales force automation software becomes more sophisticated, an increasingly important component is a module that helps manage variable sales force compensation. Pacific Scientific decided to add the Oracle Sales Compensation module to...

Calling the Right Exchange.
November 1, 1998... S.L. Mintz is New York bureau chief of CFO. Bell Atlantic notes offer a blueprint for monetizing noncore assets without a pooling mess. Companies looking to jettison noncore assets on a tax-free basis without riling the regulators...

Thirsting For Credit.
November 1, 1998... Jeannie Mandelker is a freelance writer based in Montrose, New York. With banks focusing on profits and mergers, and with markets in a whirl, a credit crunch looms. When Keith McBride and his treasury team at The Mead Corp. sat down...

Straight from the Screen.
November 1, 1998... Bronwyn Fryer is a freelance writer based in Santa Cruz, California. Newfangled software may revolutionize procurement, but not without some old-fashioned reengineering. HOLGER HUELS, CFO of pharmaceuticals giant Boehringer Ingelheim,...

USG REMODELS ITS BALANCE SHEET.
November 1, 1998... Stephen Barr is a CFO contributing editor. Why Triple B to this building-materials supplier means: Big, Bad, and Back. Hanging on the wall of Rick Fleming's office at USG Corp. headquarters in Chicago is a mock cover of this year's...

SUPERFUND STRUGGLES.
November 1, 1998... Michelle Celarier is a freelance writer in Croton-on-Hudson, New York. Old environmental liabilities can give even the most powerful company fits. Just ask GE. With $8 million in net last year General Electric was the nation's most...

SLIPPERY SLOPE.(Brief Article)(Illustration)
November 1, 1998... Average completion of IT projects on time, on budget less than 30 82% 30 to 90 67% 90 to 360 65% >360 54% Project Duration(Days) Source: The Hackett Group Best Practices Benchmark Study of IT

As Good As It Gets.(Statistical Data Included)
November 1, 1998... Linda Corman is a freelance writer in New York. THE 1998 COMPENSATION SURVEY In terms of compensation, these are the good old days. A 10 percent spurt in short-term incentive payouts gave a solid boost to compensation packages for...