Two more financial executives inducted into FEI's Hall of Fame.
Tom Jones has dealt with multiple accounting standards for most of his 52-year finance career, including senior positions at ITT Corp. and Citicorp, so it is understandable why he has devoted the past 10 years with the International Accounting Standards Board (IASB) and its predecessor organization, the International Accounting Standards Committee (IASC), to a converged set of accounting standards. "We are within view of comparable standards worldwide," he predicted in his acceptance speech.
Jones was introduced by former Federal Reserve Board Chairman Paul Volcker, who brought Jones to IASC during his term as chairman of IASC's board of trustees. "Tom has played an enormously important role over many years in the development of international accounting standards," Volcker said.
Samuel Siegel began his career with what later became Nucor Corp., in 1961. He became the controller in 1964, and was named CFO the following year. When he retired in 1999, he was honored in a closing-bell ceremony at the New York Stock Exchange. He served the company for 38 years, and is credited with reorganizing the company into what is now the largest steel producer in the U.S.
Nucor Corp. was featured as a case study in the 1998 Financial Executives Research Foundation (FERF) research publication, Changing Roles of Financial Management: Integrating Strategy, Control, and Accountability, (authored by Steve Jablonsky and Pat Keating), when Nucor was the U.S.'s number two steel producer. In that case study, Dan DiMicco was vice president and general manager of the Nucor-Yamato Steel jointly owned facility. Today, Dan DiMicco is president and CEO, and he introduced Siegel at this Hall of Fame ceremony.
Siegel's acceptance speech was brief and to the point, and he emphasized that "culture matters--people and relationships matter." What he did not mention, but what is described in the FERF case study, is that Nucor operates one of the leanest corporate organizations in the nation. According to the Nucor website: "A typical Fortune 500 company has a triple-digit corporate staff. Nucor, which ranked No. 189 on the list in 2005, has about 75 corporate employees." In fact, Nucor has only five levels of management:
* President & CEO
* Executive Vice President
* General Manager
* Department Manager
* Supervisory Professional
Again, according to the Nucor website: This streamlined chain of command allows the general managers at each Nucor division to operate their facility as an independent business. It is one of the main reasons that Nucor has maintained a strong entrepreneurial spirit, even as annual sales grew into the multi-billions.
Siegel had a hand in developing this streamlined organizational structure. The FERF case study described how the financial organization, headed by Siegel as CFO, supported open communication throughout the company.
Bob Walker, FEI Past Chair and chairman of the 2007 Hall of Fame Selection Committee, noted that the Selection Committee had limited its search to individuals who had retired from senior financial leadership positions. "We selected Sam Siegel and Tom Jones as outstanding examples of how CFOs can transform not only their own organizations, but the broader landscape of American enterprise," Walker explained.
He continued: "Sam Siegel demonstrated how a CFO, working in close partnership with his or her CEO, can change the business model of an entire industry. During Sam's tenure as Nucor's CFO, the American steel industry moved from large, integrated facilities to small, nimble plants where empowered managers make decisions and the corporate headquarters is a very small team that supports the plants. Tom Jones was a highly effective CFO who, like Sam, worked closely with his CEO as Citibank introduced significant changes into the American banking system. After his service with Citibank, Tom moved to IASB, where he has been a key driver of creating today's IASB and moving the world toward a single set of accounting standards."
Financial Executives Research Foundation Inc. would like to acknowledge and thank the Sponsors of the 2007 FEI Hall of Fame
Deloitte & Touche USA LLP
American International Group
Amper, Politziner & Mattia
FEI NJ Chapter
FEI NY Chapter
General Electric Co. Inc.
Resources Global Professionals
Robert Half International