Thai Airways to get first-ever CFO from outside the company

[webfact]

Thai Airways to get first-ever CFO from outside the company
BAMRUNG AMNATCHAROENRIT
THE NATION

BANGKOK: -- THAI AIRWAYS International, the national carrier, will employ a professional chief financial officer from outside to help turn the airline's financial fortunes around, following last year's loss of Bt12 billion.

It will be the first time in THAI's 54-year history that the CFO post has been filled by someone from outside the airline.

The search for a suitable person will be carried out by a selection committee chaired by Rungson Sriworasat, the Finance Ministry's permanent secretary.

The appointee will fill the position left vacant by Wasukarn Visansawatdi, who served as the company's executive vice president for finance and accounting. He resigned on April 15.

Air chief Marshal Prajin Juntong, chairman of the board of directors, said the recent board meeting had given the green light to open applications for the post.

The successful candidate will be hired on a four-year contract, and the selection process will be finalised over the next two months, he said.

As to the post of THAI president, which is also vacant, the selection committee will finalise its work in September, he added. The panel is chaired by Areepong Bhoocha-oom, secretary-general of the Office of the Public Sector Development Commission.

Kanit Sangsubhan, an independent THAI director, said the person chosen as the new executive vice president for finance and accounting would be a professional, who would help analyse the company's overall finances.

Financial analysis will also be applied to operational management, especially in regard to the launch of a cost-saving programme to save the carrier, he said.

However, Kanit added that getting a qualified candidate for the CFO job would be made more difficult because it attracted a lower salary than similar positions at other large companies.

General Prin Suvanadat, the caretaker deputy transport minister, said it was essential for THAI to have a professional CFO as the airline does business in 50 foreign currencies. It also suffered a big loss last year and is shouldering long-term debt from aircraft leasing.

Prajin, meanwhile, spoke to the media late on Tuesday after the end of a marathon nine-hour annual general shareholders' meeting, at which shareholders expressed concern over the company's governance and also mismanagement by the previous chairman, Ampon Kittiampon.

They also opposed Ampon's return as a board member.

Prajin said there had been no trouble with the 15-member board following the comeback of Ampon. The board's members work as a team and have their different roles to fulfil via committees, he added.

Shareholders criticised the qualifications of some of the board members, as well as the number of people on the board.

They said having 15 persons was excessive, as Singapore Airlines, for example, had just nine board members, while some of the THAI directors were not considered to be professionally qualified to help the carrier's operations.

Kanit disagreed with the shareholders on this point and argued that board members' qualifications did not lag those of any other airline.

In regard to fuel risk management, the board committee has handled the matter successfully, he insisted.

Prajin acknowledged that this year was a difficult time for the company, which was putting a huge effort into returning to profitability.

However, he said he believed that the company would survive last year's loss, while earnings would be seen next year. A 2-per-cent increase in sales revenue is predicted for 2015.

Last year's sales revenue came in at Bt211.6 billion and, due to THAI posting a loss of Bt12 billion, no dividend will be paid to shareholders.

Prajin said the company would tackle its weaknesses and increase its competitiveness, as well as maintaining synergy with Nok Air - in which it has a 39.2-per-cent stake - in order to strengthen its performance.


-- The Nation 2014-05-01

[draftvader]

I initially thought the headline read "...country". Then I remembered! Oh well, maybe next time.

[CWMcMurray]

Hire a well qualified professional that has the capability to actually do the job required... What a novel idea...

And only took 54 years and a loss of 12 billion for this idea to spring to mind...

Actually though, this is a good thing and hope they find a great candidate and they completely turn the airline around and make it profitable

As nothing is a better teacher than success

If this works well maybe other agencies will also see what a good idea it is to hire those who are qualified for the job

Sent from my iPhone using Tapatalk

Edited April 30, 2014 by CWMcMurray

[NongKhaiKid]

i can't see them hiring someone who isn't connected somehow and therefore who can be controlled.

Imagine a very competent, independent candidate wanting to do the job as it should be done and not as instructed just to suit some.

Yes, just imagine !

[JohnThailandJohn]

Hire a well qualified professional that has the capability to actually do the job required... What a novel idea...

And only took 54 years and a loss of 12 billion for this idea to spring to mind...

Actually though, this is a good thing and hope they find a great candidate and they completely turn the airline around and make it profitable

As nothing is a better teacher than success

If this works well maybe other agencies will also see what a good idea it is to hire those who are qualified for the job

Sent from my iPhone using Tapatalk

You realize you are talking about an airline that was profitable probably near 50 of their 54 years in business. Not sure how many other airlines had a 40 year run of consecutive profits through the 70s, 80s, 90s and 00s. Airlines are a tough business to be in all around the world.

Edited May 1, 2014 by JohnThailandJohn

[ezzra]

Ok, good news, now let's see how long he will last there before he will be outset by some

bogus accusations, big money at play there and many, many grabby hands are holding

on to bag...

[Elfin]

All was looking good until this clanger:

"However, Kanit added that getting a qualified candidate for the CFO job would be made more difficult because it attracted a lower salary than similar positions at other large companies."

Surely if you want to get someone good who can make tough decisions independantly, you would invest in them with an appropriate salary, in order to steer this ailing airline back into profitability?

[draftvader]

All was looking good until this clanger:

"However, Kanit added that getting a qualified candidate for the CFO job would be made more difficult because it attracted a lower salary than similar positions at other large companies."

Surely if you want to get someone good who can make tough decisions independantly, you would invest in them with an appropriate salary, in order to steer this ailing airline back into profitability?

Yes, that would make sense. It is amazing how many people, globally, don't get this concept and think that their "budget" version will work out.....

[ginjag]

All was looking good until this clanger:

"However, Kanit added that getting a qualified candidate for the CFO job would be made more difficult because it attracted a lower salary than similar positions at other large companies."

Surely if you want to get someone good who can make tough decisions independantly, you would invest in them with an appropriate salary, in order to steer this ailing airline back into profitability?

Yes, that would make sense. It is amazing how many people, globally, don't get this concept and think that their "budget" version will work out.....

" Chairman Air Chief Marshall" --amazing company, CFO, should be CEO and not THAI, and private company to do any good.

Where do you get a Thai government man, this is what he will be to run finances well, this is out of fashion at the minute.

[scorecard]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

All was looking good until this clanger:

"However, Kanit added that getting a qualified candidate for the CFO job would be made more difficult because it attracted a lower salary than similar positions at other large companies."

Surely if you want to get someone good who can make tough decisions independantly, you would invest in them with an appropriate salary, in order to steer this ailing airline back into profitability?

I wonder about an additional point.

Developing actual business strategy is not the same as keeping the financial records.

There is truth that very professional very experienced financial officers can add strong value and in most cases today should be adding strong & valuable contribution to discussions about business strategy. But it's not normal that the Chief Financial Officer is the position / person with the highest level of responsibility for development and sign off of actual business strategy. That's absolutely the CEO's decision / responsibility.

If actual business strategy is poor or inappropriate, or misaligned to organization capability / the market etc., then the CFO cannot wave a magic wand and make revenues, margin, market share, bums in seats etc., higher.

[khwaibah]

Donald Sterling of the LA Clippers is available.

[seabass69]

I'm going to send them my resume. Here is my vision: I will employ hot flight attendants, introduce proper pricing for airfares, and get my wife to do the catering. The increase in costs for these improvements will be absorbed by me skimming only 10% of the annual budget into my private account.

[bulekee]

i can't see them hiring someone who isn't connected somehow and therefore who can be controlled.

Imagine a very competent, independent candidate wanting to do the job as it should be done and not as instructed just to suit some.

Yes, just imagine !

[gchurch259]

Yes, It is important to have a CFO who can se where the money is going. But, In my the two more important position are COO and President. Why do I feel that way. I spent 32 years in different level of Management within the Aircraft Maintenance parrt of the airline. I saw "Been Counters drive four of the five airlines driven into bankruptcy by poor Management and most of them were put i their postions by Bankers and Bean Counters. Hiring top people fro m outside the industry did not help ~!!

Jerry

[h90]

I initially thought the headline read "...country". Then I remembered! Oh well, maybe next time.

I read the same as you first....

[chainarong]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

i can't see them hiring someone who isn't connected somehow and therefore who can be controlled.

Imagine a very competent, independent candidate wanting to do the job as it should be done and not as instructed just to suit some.

Yes, just imagine !

Not an outsider NKK , a local outsider, two very different things, for awhile there I thought the CFO from Qantas was being headhunted.

[chainarong]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Yes, It is important to have a CFO who can se where the money is going. But, In my the two more important position are COO and President. Why do I feel that way. I spent 32 years in different level of Management within the Aircraft Maintenance parrt of the airline. I saw "Been Counters drive four of the five airlines driven into bankruptcy by poor Management and most of them were put i their postions by Bankers and Bean Counters. Hiring top people fro m outside the industry did not help ~!! Jerry

Bean counters have a knack of doing this , mining in OZ is run by them ,they took a open cut /decline quick ore mentality, other countries took decline / shaft, if the ore opens a depth, it is now to costly now for a shaft ,so there go's a good ore body, Bankrupted some good companies and closed some good deep deposits.

[kinmaew]

I don't think a competent finance professional would touch this. First salary is too low, second, they would be dealing with Thai bureaucracy day in and day out, trying to implement changes and no one wants to play ball. Its best Thais sort out their own mess otherwise change the whole board to majority foreigners and then there will be some real changes.

[shaurene]

I was to quick I also thought it said outside the country but I see they are still unprofessional and mind set on people must be Thai to run our companies. They will never be any different until they find a CEO from outside the country.

Ah well leave them to it.

And on the comments by John ThailandJohn those years they all made money because the oil price was stable Thai started losing with all of the others because of the oil prices they could not buy forward oil wisely.

[kingstonkid]

Well it will be interesting to see. You never know some CFO or asst in a different cold country might like the sun and fun. Then again i am sure they will want to keep it Thai so that will rule out the idea of soemone with airline experience applying.

too bad

[Thai at Heart]

So does he get to analyse the perks expenses.and benefits?

[The Deerhunter]

It will be interesting to see if he/she lasts. What if management refuse to carry out his/her recommendations? If they have a successful background in airlin-appropriate finance then it will be just what TG needs. They just have to swallow the bitter medicine without claiming Thainess prevents them making the necessary changes. Start with axing the freebies & upgrades for the self-important politicians of all colours & people with certain letters in their surnames who think they are important.

[The Deerhunter]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

All was looking good until this clanger:

"However, Kanit added that getting a qualified candidate for the CFO job would be made more difficult because it attracted a lower salary than similar positions at other large companies."

Surely if you want to get someone good who can make tough decisions independantly, you would invest in them with an appropriate salary, in order to steer this ailing airline back into profitability?

I wonder about an additional point.

Developing actual business strategy is not the same as keeping the financial records.

There is truth that very professional very experienced financial officers can add strong value and in most cases today should be adding strong & valuable contribution to discussions about business strategy. But it's not normal that the Chief Financial Officer is the position / person with the highest level of responsibility for development and sign off of actual business strategy. That's absolutely the CEO's decision / responsibility.

If actual business strategy is poor or inappropriate, or misaligned to organization capability / the market etc., then the CFO cannot wave a magic wand and make revenues, margin, market share, bums in seats etc., higher.

Agree. Should be CEO, not CFO!!!!!! A new & experienced IMPORTED vision of the kind of beans they want to grow is more important that counting them.

Edited May 1, 2014 by The Deerhunter

[Soutpeel]

All was looking good until this clanger:

"However, Kanit added that getting a qualified candidate for the CFO job would be made more difficult because it attracted a lower salary than similar positions at other large companies."

Surely if you want to get someone good who can make tough decisions independantly, you would invest in them with an appropriate salary, in order to steer this ailing airline back into profitability?

I wonder about an additional point.

Developing actual business strategy is not the same as keeping the financial records.

There is truth that very professional very experienced financial officers can add strong value and in most cases today should be adding strong & valuable contribution to discussions about business strategy. But it's not normal that the Chief Financial Officer is the position / person with the highest level of responsibility for development and sign off of actual business strategy. That's absolutely the CEO's decision / responsibility.

If actual business strategy is poor or inappropriate, or misaligned to organization capability / the market etc., then the CFO cannot wave a magic wand and make revenues, margin, market share, bums in seats etc., higher.

Agree. Should be CEO, not CFO!!!!!! A new & experienced IMPORTED vision of the kind of beans they want to grow is more important that counting them.

Irrespective of whether a CEO or CFO, any foreigner brought in to head this up is doomed to failure, too many vested interests, from the current régime running the company, this is a window dressing move only, and if and when it fails blame the foreigner

[Thai at Heart]

All was looking good until this clanger:

"However, Kanit added that getting a qualified candidate for the CFO job would be made more difficult because it attracted a lower salary than similar positions at other large companies."

Surely if you want to get someone good who can make tough decisions independantly, you would invest in them with an appropriate salary, in order to steer this ailing airline back into profitability?

I wonder about an additional point.

Developing actual business strategy is not the same as keeping the financial records.

There is truth that very professional very experienced financial officers can add strong value and in most cases today should be adding strong & valuable contribution to discussions about business strategy. But it's not normal that the Chief Financial Officer is the position / person with the highest level of responsibility for development and sign off of actual business strategy. That's absolutely the CEO's decision / responsibility.

If actual business strategy is poor or inappropriate, or misaligned to organization capability / the market etc., then the CFO cannot wave a magic wand and make revenues, margin, market share, bums in seats etc., higher.

Agree. Should be CEO, not CFO!!!!!! A new & experienced IMPORTED vision of the kind of beans they want to grow is more important that counting them.

Irrespective of whether a CEO or CFO, any foreigner brought in to head this up is doomed to failure, too many vested interests, from the current régime running the company, this is a window dressing move only, and if and when it fails blame the foreigner

Who said foreigner ?

[Soutpeel]

All was looking good until this clanger:

"However, Kanit added that getting a qualified candidate for the CFO job would be made more difficult because it attracted a lower salary than similar positions at other large companies."

Surely if you want to get someone good who can make tough decisions independantly, you would invest in them with an appropriate salary, in order to steer this ailing airline back into profitability?

I wonder about an additional point.

Developing actual business strategy is not the same as keeping the financial records.

There is truth that very professional very experienced financial officers can add strong value and in most cases today should be adding strong & valuable contribution to discussions about business strategy. But it's not normal that the Chief Financial Officer is the position / person with the highest level of responsibility for development and sign off of actual business strategy. That's absolutely the CEO's decision / responsibility.

If actual business strategy is poor or inappropriate, or misaligned to organization capability / the market etc., then the CFO cannot wave a magic wand and make revenues, margin, market share, bums in seats etc., higher.

Agree. Should be CEO, not CFO!!!!!! A new & experienced IMPORTED vision of the kind of beans they want to grow is more important that counting them.

Irrespective of whether a CEO or CFO, any foreigner brought in to head this up is doomed to failure, too many vested interests, from the current régime running the company, this is a window dressing move only, and if and when it fails blame the foreigner

Who said foreigner ?

Apologies your correct no mention of a foreigner

[wileycoyote]

Improved Accountability

[spermwhale]

Maybe what they need is a western executive to run the company, but you know that won't ever happen in this racist society.

[Ulic]

Unlikely to make much of a difference as there are too many politicians at the feeding trough.

[makkam]

'The successful applicant will have extensive experience in

• giving and receiving bribes
• giving high paid positions to people with no experience, qualifications or ability whatsoever
• never under any circumstances accepting blame