100 years of CFO experience representing close to 1000 employees within the domains of product, software, analytics and life sciences came together during an Atlanta CEO Council CFO only gathering.
The CFOs:
Scott Rosenberg CFO Vector Solutions
Tuan Pham CFO Case-Mate
Andy Williamson CPO Kaizen Analytix
PR Subramanian CFO NIIT USA
Murali Anantharam CFO Moonlight Therapeutics
The Atlanta CEO Council‘s mission is to connect CEOs & CXOs to capital, customers, talent and each other. We execute this through memberships and 14 annual events. We are directly affected by the COVID19 environment but that hasn’t stopped our CXOs from gathering, helping and inspiring. On a couple evenings, several CFOs gathered to share their stories.
More than management, CFOs are putting more pressure on themselves during the global pandemic. All CFOs are in liquidity preservation mode. Employee safety, liquidity, China and securing capital were top of mind.
Employee furloughs and unemployment are becoming difficult decisions to plan and deliver. Employee empathy, morale and personal situations are affecting productivity and driving the fluidity of office re-opening timelines and execution. The novelty of working from home is resulting in three productivity levels: higher, same or lower than before the pandemic.
A company’s liquidity maintenance is priority. CFOs are calling it ‘liquidity sustenance’ or ‘cost avoidance’. Examples include pause on merit increases and 401k match, reschedule customer events and revisit all travel policies.
Back in q1, Chinese manufacturers were closed and began opening in early q2 but overseas retailers were not ready. Products were not able get out of China as planes were not coming in frequently enough and the current planes were full of medical cargo, all other cargo was waiting in line. Product company CFOs agree that there is no real replacement for the manufacturing supply chain in China. For example, Vietnam, Mexico and other countries need 10-15 years to catch up with respect to infrastructure and quality to scale operations.
Companies with diversified banking relationships fared better for securing any source of additional pandemic related capital. Community banks floated to the tip of every CFO’s tongue. After the panic of securing the PPP loan and in the 2nd half of the 8 week coverage payroll period. LOAN FORGIVENESS rules are top of mind as CFOs track loan spending. CFOs mentioned that calculating PPP by ‘hand’ proved more accurate than the payroll data from providers.
CFOs discussed a relevant List of Capital Infusions: Main Street Lending Program (based on EBITDA), Paycheck Protection Plan PPP(forgivable) and Economic Injury Disaster Loan EIDL and it’s grant advance (non forgivable) Paypal, Square, Fundera, Unemployment Insurance, Stimulus Checks, Line of Credit.
Thanks for spending time reading the Atlanta CEO Council CFO recap. Be safe, be well.
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