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CFOs Set Priorities: Tax Reform, Education, Immigration, Infrastructure

Jun 26, 2014

Earlier this month The Wall Street Journal  held its fourth annual CFO Network conference, an invitation-only gathering of more than 100 chief financial officers of the world’s largest companies, many who serve under the CEOs who comprise Business Roundtable.

It comes as no surprise then that the recommendations from the various CFO task forces align closely with those of the Business Roundtable, with similar policy changes recommended as a means to revive economic growth. From "CFOs' Top Management and Policy Priorities: What Attendees at the CFO Network Conference Really Want, Starting With Tax Reform":

1. Reform Corporate Tax Policy

Revise U.S. tax policy to be globally competitive. Create a territorial system and lower the corporate rate to allow companies to better invest capital where they see fit. The business tax code should encourage job creation, hiring and investment in the U.S., instead of encouraging American firms to move cash, investment and jobs abroad.

2 Focus on Value Creation

CFOs should sharpen their focus on the markets, customers, business units and products that have the strongest potential for consistent sustainable growth, rather than focusing on quick hits. They should bring discipline to resource allocation so as to drive value creation. CFOs need to strategically manage the company's portfolio—including ownership of mergers and acquisitions—to drive value creation and change.

3 Revamping Education

To improve competitiveness, raise living standards and reduce inequality by improving opportunity, the U.S. education system must be changed to better meet the diversity of talents among students and skill demand among employers, and to harness technology. To equip workers for the ever-changing workplace, teaching STEM—science, technology, engineering and math—is particularly important.

4 Immigration Reform

To improve the prospects of the U.S. economy, the business community should embrace comprehensive immigration reform and actively pressure Congress to get it done immediately. It should address skilled and unskilled labor, while acknowledging the workers who are already here.

5 Invest in Infrastructure

Now is the time to invest in our nation's crumbling infrastructure, while borrowing costs are low and labor is plentiful. It would put people to work and provide a foundation for future economic growth. Well-structured private-public partnerships are part of the solution.

Agreed, agreed, agreed, agreed and agreed. 

Separately, Gerard Baker of the Journal interviewed Indra K. Nooyi, Chairman and CEO, of PepsiCo on the leadership path from CFO to CEO:

 

 

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