C-Suite CAs continue to deliver returns

Each year, the CICA checks to see how many CAs occupy top positions at companies in the Globe and Mail’s Report on Business 1000. As usual, this year’s study shows CAs not only hold many of these top jobs (chair, CEO, president, CFO, chief operating officer and corporate secretary), but also bring significant advantages to their employers.

ROB 1000 companies with a CA at the helm (generally CEO or president) performed better on several key financial measures including return on equity, return on capital and return on assets. These findings are not a fluke — they have been consistent since the study’s inception in 1998. Companies with top financial officers who are CAs also outperformed businesses with non-CA CFOs.

Not surprisingly, the executive position CAs are most likely to hold is that of CFO. Nearly six in 10 (58.7%) CFOs in the 2008 ROB 1000 are CAs. This compares with 59.6 last year, 57.9% in 2006, 58.1 in 2005, 56.8% in 2004, 55.1% in 2003, 54.5% in 2002 and 53% in 2001. Although the percentage of CFO CAs dropped slightly in 2008 from 2007, it remains higher than in prior years.

Other C-suite positions frequently held by CAs include chair (11.1%), CEO (9.9%), president (9.2%), secretary (15.3%) and chief operating officer (7.5%).

John Tabone is CICA’s manager of member value and research services