Aspiring finance chiefs missing Ivy League levels can take some consolation in a current examine which discovered that Massive Ten faculties educated extra sitting CFOs than some other U.S. sports activities convention, based on the chief search agency Crist|Kolder Associates’ Volatility Report.
Of the 657 present finance chiefs with identified undergraduate instructional backgrounds in Fortune 500 and S&P 500 corporations this 12 months, the largest share of CFOs (14%) got here from worldwide establishments, whereas 10% and 9%, respectively, got here from Massive Ten and Atlantic Coast Convention establishments, and almost 8% hailed from the Ivies, based on the newest subject of the examine which reviewed knowledge from public filings and different sources by Aug. 15.
When it got here to the CEO seat, the Ivy League — comprised of eight establishments which are among the many nation’s most prestigious and selective universities resembling Harvard, Yale and Princeton universities — rose to the highest within the U.S. Of the 662 sitting CEOs within the Fortune 500 and S&P 500 this 12 months with identified instructional backgrounds, the largest chunk (16%) hailed from worldwide faculties, whereas the Ivy League (10%) educated extra chief executives than some other home sports activities convention, adopted by Massive Ten faculties (9%).
The Massive Ten’s robust exhibiting within the CFO seat didn’t come as a serious shock to consultants in company finance. The convention — composed of 14 largely public universities together with Pennsylvania State College, Michigan State and Ohio State College — usually have extra strong accounting packages than Ivy League and another personal faculties, they mentioned.
“A few of the finest accounting packages within the nation are from public universities. And that’s nonetheless the commonest main for CFOs to have studied in class, even whether it is altering,” mentioned Jack McCullough, founder and president of the CFO Management Council.
“Whereas Ivy league faculties completely deserve their reputations, not many college students go there for accounting,” he mentioned. “The preferred majors are economics, pc science and social sciences. Nice fields of examine, however not an apparent start line for a future CFO.”
The examine discovered that the highest 5 public faculties that produced sitting CFOs are: (1) College of Virginia with 11; (2) Pennsylvania State College with 10; (3) College of Texas at Austin with 9; (4) Indiana College with 8; and (5) College of Connecticut with 8. The highest 5 personal faculties that graduated sitting CFOs are: (1) College of Pennsylvania with 15; (2) College of Notre Dame with 12; (3) Duke College with 12; (4) Stanford College with 10; and (5) Harvard College with 8.
The wide-ranging Crist-Kolder examine was initially launched late final month, previous a number of the drama that arose this week as U.S. Information & World Report revealed its carefully scrutinized and infrequently criticized rankings of undergraduate faculties.
The publication shook up its methodology, and a few faculties’ locations within the rankings this 12 months, because it put better emphasis on social mobility by including such metrics as commencement charges of scholars with federal Pell Grants, which goal low- and moderate-income populations, Trade Dive sister publication Greater Ed Dive reported.
The higher CFO exhibiting of the Massive Ten faculties could partly replicate the extra egalitarian nature of the job by which abilities and acumen play an enormous function. “CFOs are anticipated to have particular monetary and accounting abilities, which could be objectively evaluated by expertise and {qualifications},” mentioned Nick Araco Jr., founding father of The CFO Alliance, a community of greater than 9,000 CFOs and monetary executives. “Due to this fact the main target for CFO choice is commonly on their skilled experience somewhat than their alma mater.”
Nonetheless, the truth that general a slim majority of each CEOs (57%) and CFOs (55%) hailed from public establishments somewhat than personal faculties or universities was a shock to some.
“I am really blissful to see that,” mentioned Jack Castonguay, an assistant professor in accounting at Hofstra College in New York, noting that he was considerably stunned to listen to that the general public college graduates maintain so many CEO and CFO spots. “It exhibits public universities are doing the work and getting folks to the highest with out the identify!”
