6 ms·
The CFO leaving is always a big deal. It can mean nothing but it can also mean a really spectacular blowup is about to take place.
by revel 3y ago
The CFO leaving is always a big deal. It can mean nothing but it can also mean a really spectacular blowup is about to take place.
- andreygrehov 3y agoIt's always a big deal, but can also mean nothing? So, pure speculation?
- cududa 3y agoThe vast majority of the time it’s a big deal, which makes it newsworthy. As well, any well run company would announce at least a few quarters in advance that the CFO is leaving. They don’t abruptly quit or get fired after 13 years without something brewing
- andreygrehov 3y agoWith respect, I do not think this is a newsworthy case. > Mr. Kirkhorn will continue to serve Tesla through the end of the year to support a seamless transition. Absolutely zero things to discuss here.
- projectazorian 3y agoThis isn’t the own you think it is. C-level execs are often contractually obliged to serve out lengthy notice periods, a quarter and some change is nothing unusual.
- whinenot 3y agoYou must be new here. Many companies keep ex-C-levels nominally employed as 'consultants' so their stock can vest (which is typically the bulk of their compensation) and avoid any expensive/public lawsuits. It's paying them off to quietly go away without spending any cash.
- Kranar 3y agoActually the vast majority of the time it's not at all a big deal. The average tenure of a CFO among the S&P 500 is 3.5 years. It's really not a big deal.
- concordDance 3y agoCare to make a wager?
- asdfman123 3y agoYes, this thread is obviously speculation. That's the purpose of it.
- Kranar 3y agoThat seems like a contradiction. How can something always be a big deal if it can mean nothing?
- deleted 3y ago[deleted]
- nlowell 3y agoE.g. The fire alarm going off is always a big deal even if there is not always a fire.
- Kranar 3y agoInteresting, almost every case I know of where a fire alarm has gone off, no one really cared. I even remember a fire alarm going off in an actual movie theater and no one budged. I'm going to maintain my position that a precondition for something always being a big deal is that it must always be meaningful. Fire alarms are sometimes a big deal, but sometimes they are just noise. I think the CFO of Tesla stepping down is also just noise as well, but you are welcome to think otherwise.
- conductr 3y ago13 years is a long tenure as CFO, on surface this means nothing.
- mtmail 3y agoI think it's 13 years at Tesla, 4 years as CFO.
- conductr 3y agoGot it. Still not a red flag though. CFO tenure is rather low. This thread points out more so how Musk has become a villain in the tech sphere and people are looking for reasons to vilify him and anything he’s associated with.
- wpietri 3y agoExactly. Since CFOs are in charge of the numbers and can be legally on the hook for them [1], their departure always gets people to perk up a bit. Even if there isn't crime involved, when they guy who knows the financials best decides he'd rather be elsewhere, it can be a sign that there's a coming plateau or downturn. That's especially interesting in the case of Tesla, whose stock is down something like 40% from peak, and who is facing increasingly stiff competition from basically every automaker in the world. [1] e.g., "fraud by negligence": https://www.reuters.com/business/sec-charges-smart-window-maker-view-ex-cfo-over-accounting-fraud-2023-07-03/ https://www.reuters.com/business/sec-charges-smart-window-ma...
- panick21_ 3y agoThat is just flat out factually wrong. CFO just like ever other position sometimes switch jobs.