Meanwhile, stock-price appreciation depends partly on attracting and satisfying a contingent of investors who are in it for the long haul, observes Stanley Meresman of Silicon Graphics. It is the CEO who must convince outsiders to buy into a company s vision. Wanting to convey expertise may lead some senior executives to be too quick on the draw with responses, says Britton Murdoch, CFO of Airgas. Sometimes it is better to say you do not know or that you will get back to someone. Overall, honest communication and mutual respect emerge as the most critical factors in CEO-CFO collaboration.
Familiarity is also important.
We can criticize each other. Sources of Confusion Much of the preceding is based on common sense. Yet when it comes to maximizing share price, many CEOs continue to wander in the dark, maintaining allegiance to outdated concepts. Many have not read the recent literature from the academic community that debunks the links between cash flow and other operating factors, on the one hand, and share price, on the other. Moreover, too many CEOs are overly influenced by sell-side analysts.