Chief Financial Officer (CFO), supervises all financial functions and
sets overall
financial strategy. Basically, CFO is a senior executive, one of the
highest financial position,
who is responsible for managing the financial actions of the company and
it includes financial
planning, management of financial risk and analyzing the company's
financial strengths and
weaknesses and proposing corrective actions. The CFO plays a vital role
in the company as he is
the one who directs the company’s financial goals, objectives and budget.
The chief financial
officer is a member of the C-suite, a term used to describe the most
important executives in a
company together with CEO, COO, and CIO.
Shareholders desire wealth maximization. Shareholders are individuals who
own shares
of stock of the company and basically they are the owners of the
corporation. Thus, they are the
one who have potential to gain profit if the company is doing well or
they can also be at risk if
the company is having a loss. In nature, the shareholders prioritize
maximizing the wealth of the
company because they will be the one who can benefits of it. Wealth
maximization of the
company which is gaining more profit, in such case it will also increase
the dividends paid out to
each common stock of the shareholders