Corporate talent much sought after in China
SHANGHAI: Minutes after the news he had quit as chief financial officer of KongZhong Corp, J.P. Gan took a call from a headhunter.
On offer was a top spot at a venture capital-backed Chinese company with plans for an overseas initial public offering.
Chief financial officers and top level executives are in high demand across the globe as cash-rich investment companies put their money to work buying companies, changing management teams, and growing the businesses.
In China, the effect is amplified. Young, western savvy CFOs who have language skills, regulatory knowledge and international experience are highly sought after and hard to find. “Talent is limited, in general. That’s just the way things are in China,” said Jixun Foo, a Shanghai-based managing director of venture capital company Granite Global Ventures.
Aggravating the shortage is the flow of Western educated executives out of the corporate and investment banking sectors and into private equity firms and hedge funds.
While talented chief executives are in demand in China, many investors view equally talented CFOs as more significant and harder to find, given the increased accounting demands required by global securities markets.
Chinese companies need CFOs who can put in place or modernise their financial infrastructure to satisfy investors and regulators.
Gan is leaving KongZhong, a US$250mil Chinese wireless services company, for venture capital firm Qiming Venture Partners in Shanghai. He said he knew at least 10 venture-backed companies hunting for CFOs.
One key executive requirement is solid English skills.
A CFO of a foreign-listed or Hong Kong-listed Chinese company can expect to earn anywhere from US$150,000 to US$500,000, plus options, said several people interviewed for this article, with CEO’s earning slightly more.
Also fuelling CFO demand is a string of successful new China listings, which have sparked a rush to the initial public offerings market. – Reuters