Presented by
Rey del Valle
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Speaker introduction
Large vs. small companies What is common
What are the differences
Where are the job opportunities
What is right for you? Points to consider
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Over 20 years Finance experience
Roles as: Divisional CFO
VP Finance and Planning
VP Strategy and Planning
In a variety of industries Banks, Travel, Shipping and Entertainment
VP Finance and Planning at Disney’s Cable Networks ($4 billion in revenue) Divisional role Consolidating Long Range Plans, Budgets and Forecast
across multiple businesses in over 128 countries Reviewing and developing business plans Liaising with Corporate and other Media business units
Previously with MTV Networks, FedEx and Norwegian Cruise Line Primarily in business units reporting to “Corporate”
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Most recently with Youbet.com as VP Strategy and Planning ($500 million in wagers; $100 million in revenue) Long Range Plans/Budgets/Forecasts
“Corporate” role, working directly with CEO, Board of Directors, Wall Street analysts
Joint Ventures – working with third parties
Quarterly Earnings releases – Auditors and outside IR firm
M&A – worked with Investment Bankers and outside Counsel
Closed on the sale of Youbet to Churchill Downs in June 2010
Have also been CFO in pre-funding startups
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Metrics/Key Drivers focus
Managing people and processes
Team work
Attention to detail
Broad time span Short term tactical pricing Quarterly earnings impact Investing in opportunities with > 1 year gestation
Excellence Youbet team from Ticketmaster, Disney, Orbitz, Yahoo, Harrah’s,
MCI
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We’ll review in the next slides Resources
Processes
Planning Horizons
Positioning/Communication
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Limited in a smaller company Expenses more likely to have an EPS impact
40 million shares vs. 2 billion
Need to effectively prioritize Focus on high impact projects and initiatives
No “Corporate” reporting alleviates workload Stoplights, EVA and other reporting not used internally
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Large Company Defined processes in place
Models already developed
Focus on refining (Six Sigma, etc)
Small Company Few established processes
Develop models from scratch
Inherit vs. Invent – provides opportunity to be recognized
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Large Company Deadlines distributed a year in advance
Determined by Board dates
Less flexibility
Twice quarterly forecasts
Small Company Deadlines can move
Board dates more flexible
Driven by bank requirements
Sometimes ad hoc
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Large Company Initiatives tend to be internally focused for Senior management
reviews and approval
Air Traffic Control: Keep information flowing across various constituencies with the message evolving
Start by challenging then becoming advocate
Small Company Tend to be geared toward Board approval
Value creation and EPS impact
Street and Investor perceptions matter
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Number of FPA Staff Large Companies: Corporate and Divisional
Examples:
Disney Cable Networks ($4B) staff of 10
Additional Staff in Regions and Business Units
ABC Family ($300m) 3 Planners, splitting with acctg duties
Small companies
Many more small companies than large
Fewer pure FPA roles in small companies
Smallest companies may not plan or are directly managed by Controller
Youbet –$100m revenue across two segments- 2 planners
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Job Security
Compensation
Interaction
Flexibility/Structure
Career Development
Recognition
Prestige/Brand Association
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Large Companies Layoffs and
Reorganizations
Small Companies Layoffs and
failures
Not as likely to get press
Implication – not really safe anywhere. Need to keep your skills sharp and your network active
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Salaries vary widely, but tend to be lower in smaller companies
Bonuses in small companies can fall into a broad range Factor of 6x from 2008 to 2009
Stock based compensation at smaller public companies present significant upside due to size of grants and volatility
Implication –Need to know your own tolerance or aversion for risk (Home run Vs Singles)
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100
200
300
400
Mid Large
Th
ou
san
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Size Company
VP Finance Salary
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50
100
150
2008 2009
Bonus Volatility
Large company Can be more diverse and offer more opportunity for social interaction with
people from different backgrounds Tend to work within your FPA team (think of where your department sits) Most senior level of exposure typically with SVPs or division management Easier to fade into the crowd
Small company Opportunity to interact directly with CEO and others on the senior
management team Work across multiple disciplines - marketing, engineering, legal, accounting More intimate setting, you’ll know your colleagues better Can’t hide
Implication – Right setting depends on your preferred type of social interaction
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New initiatives Large Company
Criteria set Multiple layers of review
Small Company Opportunities can arise suddenly and require quick analysis Approval criteria more fluid Once the management team is on board, reviewed with the
Board
Implications In a smaller setting, person needs to be comfortable with ambiguity
and must be a self starter Larger companies require patience and perseverance
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Large companies offer formal technical training Leadership training Tuition reimbursement
Smaller companies offer on-the-job training and opportunities to move into broader roles Prepare for general management
Implication - Need to be certain of your career goals and personal development plans
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Large Company More process driven, less opportunities to stand out
Promotions often delayed by time in grade requirements
Recognition mostly within your own business unit
Need to “Go with the Flow”
Small company Ability to produce high impact work
Good work is often recognized by C-level execs and Board of Directors
Flexibility to reward outstanding work with promotions
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Large Company Recognizable brands bring instant credibility with recruiters and
hiring managers
Sense of belonging, pride
Could also suffer from negative connotation
Think “Enron”
Small company Need to “sell” and explain what company does
Opportunity to build next Facebook or Google
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What’s right for you depends on several factors Where you are in your career
Size organization that fits your personality (Think: What size school you attended)
Work ethic - happy to just put in time vs. action orientation
Process orientation vs. “Free Thinker”
Big company “Brand” association
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Vs.
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