Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown • Hacker News Board

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#41

Post by travisoneill1 » Thu, Jan 31, 2019, 8:18 PM UTC

relaunched wrote: post #24

This is a huge red flag, in my opinion. A CFO is legally responsible for compliance to exchange regulations, SEC, etc. Reporting is based on judgement, regarding the interpretation of very complex rules. I would have liked to see someone with external experience that has a frame of reference as to how other companies do things, in a high-pressure, regulated environment; a la Ruth Porat. Musk is a big personality, wit…

It is a red flag, but it has been going on so long at Tesla that I don't think it is hiding any kind of fraud. That would come out quick. Tesla is under too much scrutiny and its finances are too simple to hide much. I would guess that it is just high turnover because nobody wants the job. Most public company CFO's don't have to deal with what they would at Tesla.

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#42

Post by travisoneill1 » Thu, Jan 31, 2019, 8:23 PM UTC

gamblor956 wrote: post #25

jklinger410 wrote: post #15

Earlier quoted context omitted.

>the worrisome implication is that TSLA has trouble attracting and retaining senior talent given the work pressure and thin financial margin A lot of "senior talent" are probably entitled, slow, and pedestrian. A lot of companies like these people because they are good at maintaining a caste system and shaking hands. I think Tesla, as a disruptor, both needs and hates these employees. They need someone who has "done…

Yes, I work with senior talent all the time. Musk is precisely the bad kind of senior talent--imperious, oblivious, and completely unwilling to listen to advice from others even when he's been shown to be wrong. The senior talent that's spent the last 3 years leaving Tesla? They've got documented success at other companies within their respective niches. With Finance, especially, you want someone with experience and…

> Musk is precisely the bad kind of senior talent

Tell that to the investors. He has made them a fortune in every enterprise he has ever run. What kind of senior talent would you want? You talk about documented success, but who has more of that than Elon Musk? It's a short list. If you don't like him, just say it, but don't make ridiculous claims.

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#43

Post by rchaud » Thu, Jan 31, 2019, 8:25 PM UTC

danhak wrote: post #3

He seems pretty well-known within the company. First joined Tesla 9 years ago, Wharton undergrad, Harvard MBA. He’s obviously qualified, what’s with all the ageist comments? 34 years old is a “kid” now? On HN of all places? Who cares if he’s a “relative unknown” according to WSJ. Is notoriety an important qualification for CFO?

Because it sounds suspiciously like a battlefield promotion. The ex-CFO is 'retiring' at age 56, shortly after returning to the company? And the guy replacing him had just been appointed to a VP role mere weeks ago. Pretty big step up.

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#44

Post by rm_-rf_slash » Thu, Jan 31, 2019, 8:31 PM UTC

fatlasp wrote: post #39

Pharmakon wrote: post #31

Earlier quoted context omitted.

I’m starting to get worried myself. Seeing finance people who would have to take responsibility for things like signing the financials over to audit leaving is not unlike seeing rats dive off the deck of a ship. Maybe they’re just tired of the ride, but maybe they’re aware of something the crew isn’t. Either way, ignoring that sign and making excuses because of love or Tesla is a bad move. A lot of major financial im…

In grad school I had a corporate finance professor that said when you see the CFO leaving it's almost always a bad sign. Finance guys don't leave when everything looks like it's going to be smooth sailing for years to come

I generally agree with that assessment, but to be fair, any qualified CFO would likely have lower-risk, comparable-reward option elsewhere.

I believe in Tesla and hope to the heavens that they succeed in what they are doing, but if I were a star CFO being headhunted for this job, I would probably see myself looking at the prospect of working brutal hours with an uncertain payout, and a possible reputational vulnerability should things go south. Only true believers need apply.

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#45

Post by [deleted] » Thu, Jan 31, 2019, 8:35 PM UTC

fatlasp wrote: post #39

Pharmakon wrote: post #31

Earlier quoted context omitted.

I’m starting to get worried myself. Seeing finance people who would have to take responsibility for things like signing the financials over to audit leaving is not unlike seeing rats dive off the deck of a ship. Maybe they’re just tired of the ride, but maybe they’re aware of something the crew isn’t. Either way, ignoring that sign and making excuses because of love or Tesla is a bad move. A lot of major financial im…

In grad school I had a corporate finance professor that said when you see the CFO leaving it's almost always a bad sign. Finance guys don't leave when everything looks like it's going to be smooth sailing for years to come

[deleted]

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#46

Post by kgwgk » Thu, Jan 31, 2019, 8:37 PM UTC

sailingparrot wrote: post #10

kgwgk wrote: post #4

Earlier quoted context omitted.

Would you be so cool if he was replacing Musk while he did a reconnaissance trip to Mars or something?

Why not? Not being famous makes you a bad CEO? Who knew about Satya Nadella except MS employee before he was named CEO?

Nadella had been for a few years the president of the servers and tools division (revenue $20bn, profits $8bn), getting a $700k salary. I’m pretty sure many people outside Microsoft had heard of him.

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#47

Post by kgwgk » Thu, Jan 31, 2019, 8:43 PM UTC

nickik wrote: post #18

berberous wrote: post #7

Earlier quoted context omitted.

When the last CFO left in under 2 years, and many other senior execs seem to be fleeing, the worrisome implication is that TSLA has trouble attracting and retaining senior talent given the work pressure and thin financial margin, so they are instead turning to a relatively green home-bred 34 yo. At the end of the day, I'm not personally worried about this and think this guy will likely do just fine, but this is suffi…

The narrative that Tesla has a 'fleeing execs' is mostly false. For years every-time somebody lefts there are articles claiming that managers a fleeing. Overall however the turnover rate is not very exceptional and somehow Tesla still has highly performing managers after years of 'fleeing execs'. Tesla is continuing to grow at a high rate threw all that so its really hard for me to see this as anything other then nar…

https://twitter.com/IsFunkyMonkey/status/1090778355664805891

“To be fair, finance positions typically are the hardest to fill.

With it being a new science, the lack of codified rules/schools, & the propensity for finance people to want to spend time with their families at every waking moment.

Tesla's doing better than usual w/ retention.”

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#48

Post by ecpottinger » Thu, Jan 31, 2019, 8:57 PM UTC

gamblor956 wrote: post #25

jklinger410 wrote: post #15

Earlier quoted context omitted.

>the worrisome implication is that TSLA has trouble attracting and retaining senior talent given the work pressure and thin financial margin A lot of "senior talent" are probably entitled, slow, and pedestrian. A lot of companies like these people because they are good at maintaining a caste system and shaking hands. I think Tesla, as a disruptor, both needs and hates these employees. They need someone who has "done…

Yes, I work with senior talent all the time. Musk is precisely the bad kind of senior talent--imperious, oblivious, and completely unwilling to listen to advice from others even when he's been shown to be wrong. The senior talent that's spent the last 3 years leaving Tesla? They've got documented success at other companies within their respective niches. With Finance, especially, you want someone with experience and…

Right /S

Paypal, Tesla, SolarCity, SpaceX and still other companies in startup modes.

WE NEED MORE BAD TALENT LIKE THIS!

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#49

Post by jklinger410 » Thu, Jan 31, 2019, 8:58 PM UTC

gamblor956 wrote: post #25

jklinger410 wrote: post #15

Earlier quoted context omitted.

>the worrisome implication is that TSLA has trouble attracting and retaining senior talent given the work pressure and thin financial margin A lot of "senior talent" are probably entitled, slow, and pedestrian. A lot of companies like these people because they are good at maintaining a caste system and shaking hands. I think Tesla, as a disruptor, both needs and hates these employees. They need someone who has "done…

Yes, I work with senior talent all the time. Musk is precisely the bad kind of senior talent--imperious, oblivious, and completely unwilling to listen to advice from others even when he's been shown to be wrong. The senior talent that's spent the last 3 years leaving Tesla? They've got documented success at other companies within their respective niches. With Finance, especially, you want someone with experience and…

>Musk is precisely the bad kind of senior talent--imperious, oblivious, and completely unwilling to listen to advice from others even when he's been shown to be wrong.

That's just like, your opinion, man. Steve Jobs was an awful boss to some, but a visionary to others. Same with others throughout history.

>They've got documented success at other companies within their respective niches...The CFOs and other CxOs that have left Tesla have done good jobs at other companies

And the CFO before them was doing a good job too. And the CFO after them will do a good job too. I think manning the helm of a big self-steering monolith is a different game than running a disruptor.

>No CFO of a publicly traded company leaves the job voluntarily if everything's fine.

This is a common trope that never gets called out when it ends up not being true. It only sounds good when a CFO leaves, never when the company they left doesn't go bankrupt or die off because they left.

Re: Elon Musk’s Surprise Pick for Tesla CFO Is a Relative Unknown

#50

Post by ecpottinger » Thu, Jan 31, 2019, 9:00 PM UTC

SECProto wrote: post #12

skh wrote: post #5

Earlier quoted context omitted.

I think it is noteworthy given the notoriety of Musk and the high pressure situation being CFO of a company whose CEO makes numerous unsubstantiated claims. If I were an investor in TSLA this would not be welcome news to me. Is this person, relatively young for CFO, in a position to stand up to Musk? Is this person going to be just a yes man so to speak?

> Is this person, relatively young for CFO, in a position to stand up to Musk? Is this person going to be just a yes man so to speak? My guess: Musk would be more likely to listen to someone who knows the company inside and out and has been with them for years, as opposed to a qualified outsider.

A qualified outsider who in turn is really unqualified as being an outsider means they know little about how the company really works.