Through the years with the controller, then financial executive.

This first in a series compiled by the editors highlights some key developments in the internal and external environment for financial executives via looking back at articles published in past issues of the magazine. Featured here: June 1934 (the first year), 1964, 1984 and 2004.

1934, June, The Controller, Editorial Comment:

"The excessive cost of preparing reports, statements and questionnaires for various government and state agencies is claiming the attention of controllers, on whom this increasing burden is falling.

"The problem is being studied by The Controllers Institute of America. In April, the members of that organization, at their spring conference, devoted a period to discussion of the subject, which brought out startling facts as to the cost of preparing these reports and questionnaires, to say nothing of the difficulties of trying to interpret the real meaning of the involved and in some cases pointless questions asked by government agencies."

"High Cost of Complying with Complex Regulations Now Large Factor," by Judge William L. Ransom:

"Legislation and litigation have combined to give an ever increasing importance and dignity to those responsible for the books, accounts and records of American industry.

"In an earlier and perhaps happier day, all of the energies of an industrial or commercial enterprise were centered on selling its products or rendering its service.

"Today it often seems that the primary task of the managers of an enterprise must be to conduct and record its transactions so as to comply with a multitude of complex requirements and regulations, imposed by all manner of public authority; then if any time or energies are left for production and selling, the enterprise is fortunate."

1964, June, Financial Executive, "SEC Looks at the Year 1964:"

"Business expenditures on new plant and equipment in 1964 are expected to amount to a record $43.2 billion, ten percent or $4 billion higher than 1963, according to the latest survey conducted in February by the Securities and Exchange Commission.

"Realizations of these programs would mark the third successive year of advance from the low in 1961; more significantly, the expected rise in 1964 is larger than those experienced in the previous two years."

November, 1984, Financial Executive: "The State-of-the-Art CFO," by Ferdinand Nadherny, president, Russell Reynolds Associates Inc., from a speech given to the Boston Chapter of the Financial Executives Institute, Nov. 16, 1983:

"A quick survey of the literature concerning the qualifications employers look for in their financial officers suggests that firms expect a lot more from their chief financial officers (CFOs) than they did in the past. For example, they're looking for more international 'savvy,' and they're emphasizing the 'control' side over the 'treasury' side.

"... 12 years ago, not a single one of our clients explicitly insisted on international experience and know-how. Currently ... at least half are citing international competence as a basic requirement.

"... As for the 'control' function, the results are even more striking. Again, there was not any mention of this a decade ago, whereas now it's stressed more often than not. Obviously, companies are more concerned with cost containment and balance sheet management.

"... two areas that jump out of the statistics and hit you right in the face. They're too glaring and obvious to ignore. The first is the demand for, the insistence on, personal qualities, a combination of a congenial personality and a strong leadership ability."

"The New CFO: Walking Today's Financial Tightrope," by Brady Means, director, International Business and Productivity Analysis Group, Coopers and Lybrand:

"How companies come to grips with the new international focus and the price sensitivity of the U.S. market will dramatically redefine approaches to corporate management and planning and may suggest entirely new roles for the chief financial officer (CFO).

"Traditional financial functions such as auditing, financial reporting, and tax planning will continue to be important (certainly one of the hottest political debates next year will be over fundamental changes in tax policy).

"The most effective CFOs, however, will be those who understand the rising importance of both productivity/ cost improvement and overseas markets and grasp the initiative in helping to discharge these newly important business functions."

2004: In "Embracing Financial Transparency: The New Era for Financial Executives," FEI's President and CEO Colleen Cunningham wrote: "Companies that subcumbed to scandal were awash in lethal brews of overly aggressive financial targets, coupled with a tone at the top that not reaching those targets was unforgivable. ... Improving the transparency of financial reporting means going beyond what is required, and disclosing what is meaningful. ... we make transparency the objective ..."