CAs occupy an estimated 10% of other top positions, such as chair, CEO, chief operating officer (COO), and president. This share of the market is growing, albeit slowly. As mentioned earlier, the presence of CAs on corporate boards is seen as a necessity in today's environment. The need to reassure and satisfy investors about an organization's financial health may also lead to the appointment of more CAs to CEO positions.
Some senior non-CFO positions in which credibility and assurance are key are held almost exclusively by CAs; these include: chief accountant, accounting policy, chief internal auditor/internal audit group, financial reporting and controller. Increasingly, CAs share a number of positions with tax lawyers, masters of business administration (MBA) holders and chartered financial analysts (CFAs), such as: investor relations, treasurer, vice-president (VP) finance, taxation, insurance, and risk management.
While CAs are found in management reporting, cost groups, corporate resources and operational divisions, these roles are dominated by certified management accountants (CMAs) and MBAs. Lower-level positions are populated by a wide range of designations, including CMAs, CFAs, and certified general accountants (CGAs). At the entry level, non-designated candidates are often encouraged to obtain a CFA or CGA.
In the government and non-profit sectors, the higher-level positions belong to CAs; however, at the lower and entry levels all designations are often considered equal. Within smaller companies and for individuals, the market is very open, and market confusion is increasing.
CAs seen as having many strengths梐nd some weaknesses
CAs are viewed as experts who are intelligent, skilled, hard-working, and quick to learn. They are seen as achievers who bring rigour and competence to their roles and act with integrity and objectivity. Interviewees also cited CAs' high level of expertise in accounting and finance, and their autonomy, assertiveness, independence, and unique way of looking at problems.
The research also indicates that there is more consistency in the CA brand than in other designations or degrees. 揅A?is seen as a reliable brand that stands for reliable people. Its holders are seen to have broader experience and deeper knowledge than any other designation. The CA designation is also synonymous with credibility and trust. That being said, there is a growing perception that very good CMAs and CGAs are also available.
The screening process to enter the CA program contributes to the recognition of the CA designation because it guarantees intelligence, a strong work ethic, and an overachiever profile. Executives and recruiters also attribute the strong demand for CAs to the breadth, rigour, and consistency of CAs' education and experience. The experience CA students receive is more valued when acquired in a major urban centre, with major clients, in a global environment.
Although softer skills are increasingly important at top levels, the designation is still the key, and the CA designation is of utmost importance when it comes to CFO and VP finance positions, as well as other assurance-related positions. CAs are considered by industry to be better equipped to handle complexity and changes occurring in the financial world. They also have significantly more experience in a regulated environment, which is obviously a top priority for public companies and other public entities at this time.
Since CAs are considered more competent in these key areas than other financial designations, they are more likely to be promoted. However, interviewees also cited some weaknesses affecting CAs in top jobs, including lack of flexibility, resistance to change, difficulty acting as facilitators, and a tendency to identify problems instead of providing advice and solutions. While CAs are seen to be highly specialized, some interviewees identified weaknesses in the area of operational tasks.
CAs are also perceived as weaker in the corporate and management context when it comes to human resources management, leadership, and negotiation and communications skills. As a result, they often wield less strategic or political influence and do not see the bigger picture of the business strategy and dynamic. While those interviewed said that some CAs are strong in these areas, this was attributed more to individual personality and career path than to designation.
CAs are seen to have increased their overall competence on the strategic side of organizations over the past ten years, though this is based more on experience than training. CAs are also sufficiently qualified and trained from the start to accumulate such meaningful experience.
Growing competition and eroding global market share
My research indicates that, due to today's emphasis on credibility and the quality of corporate reporting, CAs are the first choice to fill the most senior financial positions, and most recent recruits are CAs. This applies to the vast majority of CFOs and VPs finance recently recruited by large public and private corporations. A small proportion of these recent recruits is made up of MBAs. CAs hold about 80% of very senior-level positions in finance, with MBAs and CMAs holding the remaining 20%.
However, when it comes to filling such positions as controller, accounting manager, treasurer, etc., there is increasing flexibility on the client side, with a growing number of CMAs and CGAs being recruited (new positions are split roughly 50/50 between CAs and CMAs). While CAs were once controllers, they are increasingly moving to strategic analysis and decision-making positions, where there is the greatest increase in demand. CMAs and CGAs are increasingly occupying the controller positions, which require skills that are often of a more technical nature.
CA is still perceived as a premium brand, but some companies are willing to take an alternate梠r less expensive梤oute and consider a CMA or CGA instead. Some interviewees also expressed concern that CAs recruited to lower or middle-level operational positions might become bored and leave after a few years.
In the investment world, people still prefer to deal with a CA, but CFAs and MBAs have made major inroads due to the perceived value of their business and finance skills. When compared to CFAs and MBAs, CAs are not seen as having as sound a business sense or being as strong in putting deals together.
CAs are also under pressure from the competition for lower-level financial jobs. Holders of bachelor of commerce degrees, engineers with industry experience, and MBAs are becoming strong competitors. In many cases, CMAs, MBAs, and CGAs are now thought to have the same basic skills as CAs, although CAs' proven expertise still places them as the premium designation in the job market. The research also indicates that CAs tend to hire CAs, while CMAs tend to hire CMAs.
CMAs have substantially increased their market share and have positioned themselves well. They are perceived as a hybrid between a CA and a MBA because of their training, and their program is very well regarded, although the CMA designation is still considered much easier to earn than the CA designation. That being said, interviewees said it is becoming more difficult to earn a CMA designation, and they believe that CMA training is improving.
CMAs are increasingly competing for the same jobs as CAs (except within publicly traded companies) but, generally, employers prefer CMAs in management reporting positions. Employers, even in small and medium-sized enterprises do not see CMAs as genuine competition for CAs, saying they work in different positions with different responsibilities. Notwithstanding the aforementioned perceptions that CAs could have stronger strategic skills, they are still perceived as more strategic when compared to CMAs, who are seen to be more involved in day-to-day operations.
CMAs have found their niche in management and processes. They generally work at the operational level, in controller positions, industry settings, budgeting, and administrative positions, though not exclusively in accounting and finance. CMAs are easily integrated within tactical jobs, but are not usually found at higher-level, corporate finance positions.
In operational positions, CAs have failed to keep up with CMAs. CMAs are considered to be very good employees and are working their way up the ladder because of their branding effort, enhanced program, and the quality of the people who earn the designation.
