CFO's for small cap publicly traded companiesThe recent postings about the settled law suit brings to mind the challenge any small publicly traded company faces in hiring and retaining an appropriate person to take on the very critical role of Chief Financial Officer. This would generally require, even for a small company like Verde, a fully qualified CA or CPA with all the relevant experience with the public securities market rules, regulations and reporting/disclosure requirements. This kind of talent does not come cheaply, and appropriately qualified professionals are hard to find, attract and retain by companies like Verde. You will often see several smaller companies "sharing" a CFO, who allocates a limited portion of their time to each one - again not an ideal solution.
It is an ongoing challenge for a CEO of a small enterprise - the enterprise absolutely needs the brightest and the best CFO, but is not yet at the size and complexity that it can really afford to recruit the necessary person. Trying to get by with a hard working accountant who lacks the requisite qualifications and experience can and does sometimes lead to conflict and challenges, as I am suggesting might have been the case with Verde back in 2012-2014.
A common solution is to add an experienced and qualified CA or CPA to the Company's Board of Directors and to rely on this individual to oversee and mentor the "CFO" function using the full depth of their very valuable experience and insight. This is not required on a day-to-day basis, but at critical times of the quarterly and annual reporting cycle, or at critical financing or capital raising transactions, absolutely essential.
My two cents as a retired CFO for what it is worth. And no, I am not proposing myself as a candidate for the Verde Board.
Cheers.
S