CEO and CFO: 3 Ways to Improve their Relationship

The relationship between Chief Executive Officers and Chief Financial Officers has evolved far beyond traditional financial stewardship. For multinational enterprises managing raw materials across continents, subsidiary operations in diverse markets, and complex multi-currency transactions, this partnership has become the cornerstone of global financial strategy.

The Modern Financial Leadership Paradigm

Recent data reveals a fundamental shift in C-suite dynamics. According to Deloitte's Q4 2024 CFO Signals survey, CFO confidence has surged dramatically, with finance chiefs showing marked optimism as they head into 2025. This confidence reflects not just economic sentiment, but the elevated strategic role CFOs now occupy.

The 2024 Global CFO & CIO Survey demonstrates this transformation quantitatively: nearly half of CFOs (49%) believe their improved relationship was the reason for improved business outcomes. For treasury managers overseeing global operations, this data underscores a critical insight: relationship quality directly impacts financial performance.

The Treasury Management Connection

What drives this correlation between executive relationships and business outcomes? For multinational organisations, the answer lies in complex financial orchestration. When CFOs and CEOs maintain aligned perspectives on currency risk, subsidiary performance, and international cash flow optimisation, companies achieve superior results across multiple performance metrics.

Consider the strategic complexity facing today's financial leaders:

• Managing foreign exchange exposure across 15-20 currencies
• Optimising subsidiary cash positions in real-time
• Balancing centralised treasury functions with local operational needs
• Coordinating acquisition strategies across multiple jurisdictions

Three Strategic Pillars for CEO-CFO Excellence

1. Complementary Strategic Positioning

The traditional model of visionary CEO paired with detail-oriented CFO remains powerful, but requires sophisticated enhancement for global operations. Modern effective partnerships integrate what Deloitte research identifies as complementary character types: guardian, pioneer, driver, and integrator. Significantly, almost 75% of effective partnerships include one driver.

For multinational treasury management, this translates into specific operational advantages:

The Strategic CFO Approach: Rather than simply complementing CEO vision, the modern CFO must anticipate global financial challenges. When raw material costs fluctuate in emerging markets, or when subsidiary performance varies due to currency movements, the CFO's analytical framework must provide strategic context, not just financial reporting.

Case Study Application: Consider a technology company sourcing components from Southeast Asia while serving European markets. The CFO's complementary role involves not just reporting currency impacts, but developing hedging strategies that enable the CEO's market expansion objectives. This requires understanding operational dynamics, not just financial metrics.

Treasury Management Integration: Finance chiefs can enhance their strategic positioning by developing expertise in:

• Multi-currency cash forecasting methodologies
• Cross-border payment optimisation strategies
• Subsidiary capital allocation frameworks
• Real-time foreign exchange risk assessment

2. Trust Through Operational Excellence

Trust between CEO and CFO transcends personal relationships—it represents operational reliability across complex global financial systems. When CEOs sign annual accounts, they rely on CFO assurance regarding subsidiary consolidation, foreign exchange position accuracy, and international compliance frameworks.

The stakes are particularly high for multinational operations. 42% of CEOs express optimism about the global economy, suggesting increased willingness to pursue international expansion. However, this optimism must be supported by robust financial infrastructure.

Treasury-Specific Trust Indicators:

• Accuracy of multi-currency financial reporting
• Reliability of foreign exchange hedging programs
• Effectiveness of international cash management systems
• Compliance with diverse regulatory requirements across jurisdictions

Building CEO Confidence: CFOs can establish trust through demonstrable competence in:

• Implementing sophisticated treasury management systems
• Developing accurate foreign exchange forecasting models
• Maintaining optimal liquidity across global subsidiaries
• Creating transparent international financial reporting frameworks

Risk Management Excellence: When evaluating acquisition opportunities in foreign markets, CEOs depend on CFO analysis of currency risks, regulatory complexities, and integration challenges. This dependency requires CFOs to develop expertise beyond traditional financial analysis.

3. Collaborative Global Strategy Development

The most sophisticated CEO-CFO partnerships integrate treasury management perspectives into core strategic planning. Rather than treating international financial management as operational support, leading organisations position treasury insights as strategic intelligence.

Strategic Coordination Framework: Board reporting becomes the ultimate test of CEO-CFO alignment. When presenting international expansion plans, both executives must demonstrate coherent understanding of:

• Currency risk implications for projected returns
• Subsidiary financing requirements and optimisation opportunities
• Cross-border regulatory compliance strategies
• International cash flow forecasting accuracy

Treasury-Driven Strategic Insights: Modern CFOs contribute strategic value by translating complex international financial dynamics into actionable business intelligence. This includes:

• Identifying optimal market entry timing based on currency conditions
• Recommending subsidiary structures that enhance tax efficiency
• Developing financing strategies that leverage global capital markets
• Creating hedging frameworks that support long-term strategic objectives

The Technology Amplification Factor

Recent survey data highlights technology's role in strengthening CEO-CFO partnerships. 42% of finance leaders believe technology partnerships contribute to improved business results. For treasury management, technology represents both opportunity and imperative.

Modern Treasury Technology Stack:

• Real-time multi-currency reporting platforms
• Automated foreign exchange hedging systems
• Integrated subsidiary cash management solutions
• Advanced analytics for international financial forecasting

Strategic Technology Integration: Leading finance organisations leverage technology not just for operational efficiency, but for strategic advantage. When CFOs can provide CEOs with real-time visibility into global cash positions, currency exposures, and subsidiary performance, strategic decision-making accelerates dramatically.

Future-Oriented Partnership Development

Looking ahead, successful CEO-CFO partnerships will be distinguished by their ability to navigate increasing global complexity. 47% of CFOs indicate their organisations intend to change benefits or transfer costs to manage employee expenses in 2025, suggesting continued focus on operational optimisation.

Strategic Imperatives for 2025:

• Enhanced international regulatory compliance capabilities
• Sophisticated foreign exchange risk management frameworks
• Integrated global cash optimisation strategies
• Advanced subsidiary performance measurement systems

Treasury Management Evolution: The most successful partnerships will position treasury management as a strategic capability, not just an operational function. This requires CFOs to develop expertise in:

• Global market dynamics and their financial implications
• International regulatory trends affecting multinational operations
• Technology solutions that enhance global financial management
• Strategic frameworks for international business development

Conclusion: The Strategic Partnership Imperative

For treasury managers and CFOs operating in global markets, the CEO-CFO partnership represents far more than internal collaboration—it embodies the strategic financial leadership essential for international business success. Companies that master this relationship gain competitive advantages in market expansion, risk management, and operational efficiency.

The data demonstrates clear correlation between executive partnership quality and business performance. For multinational organisations managing complex treasury operations, this relationship becomes the foundation for strategic financial management across currencies, jurisdictions, and markets.

Success requires moving beyond traditional complementary roles toward integrated strategic partnership, where treasury management insights inform core business decisions, and where global financial expertise enables international business expansion.