New exec hits the C-suite

Companies involved in transactions such as mergers and acquisitions are adding one more “C” executive to their rosters: the corporate development officer.

The CDO role evolved because chief financial officers, who traditionally held responsibility for such transactions, are now focusing on financial reporting and regulatory compliance, an Ernst & Young study finds.

According to the study, Striving for Transaction Excellence: The Emerging Role of the Corporate Development Officer, 37% of CDOs report directly to the CEO or corporate boards, as is common in other C-suite positions. Further- more, CDOs were most often named by executives as the company’s leader in M&A and monetization transactions such as sales of subsidiaries and spin-offs, and 86% are considered a primary source for generating such transaction opportunities.