Question

In a meeting, the CEO tried to convince every senior executive to do their very best to “maximize the company’s overall profit”. As a CFO, comment on what the CEO said above and illustrate your point with an example.

Answer 1

As a CFO, my comment on the statement "In a meeting, the CEO tried to convince every senior executive to do their very best to “maximize the company’s overall profit” is given below:-

CEO's believe that they can include the most incentive in their companies by making, conveying, and observing an expilcit arrangement of controls, financial, social, or both—that guarantee uniform, unsurprising practices and encounters for clients and employees. CEO's trust that their organizations' prosperity relies upon the capacity to give clients a predictable and hazard free understanding. Therefore, these senior executives go through their days taking care of exceptions to their company's controls, for example, quarterly results that are beneath desires or a project that has gone far from deadline. What's more, they dedicate additional time than different sorts of CEOs to creating detailed, prescriptive arrangements, techniques, and compensations to fortify desired practices. At long last, these officials will in general worth seniority inside the association, regularly promoting individuals with numerous long periods of service to the corporate group and once in a while employing high level administrators from outside the organization.

Senior executives are ultimately responsible for each and every decision and action of every stakeholder of the company, also those decisions and actions of which they were not aware. These CEO's believe that in their particular companies, success reliais on superior execution,decision making, interaction with clients, bring out new products in market, or make plans to defeat the competition.