How Google will be affected when Ruth Porat becomes CFO
In mid-July, during the company's Q2 earnings conference call, Ruth Porat is expected to debut as Google’s first female CFO, according to Investor’s Business Daily.
Porat, the former CFO of Morgan Stanley, is set to replace Patrick Pichette, who will be retiring after seven years at the post. She has accepted a reported $70 million pay package to assume these new responsibilities.
The question, and cause for excitement, on everyone’s mind is: What will she do once she’s at the helm?
1. Continue diversification: Google began as a search engine and continues to be a dominant player in that industry. However, it has also been an aggressive buyer of organizations outside of search.
Quoted in Investor’s Business Daily, RBC Capital Markets analyst Mark Mahaney said, "We view Google as the largest portfolio of Internet investments (search, YouTube, a display advertising network, Google Play, wearable devices, IoT, the connected car, etc.) which requires a CFO who can handle substantial complexity."
Porat will surely engineer additional acquisitions. The excitement is over what they will be, exactly.
2. Manage Google’s substantial offers: Speaking on CNBC, Ivan Feinseth, of Tigress Financial Partners, estimated Google’s assets at $112 billion. "She has close to $80 billion in cash and about $32 billion in what we will call EBITDAR or cash flow. So, that's a lot of money to manage, to invest in R&D, to use for acquisitions to build the company," he said.
One major decision Porat will need to make is how Google will begin creating value for the shareholder. "They also have to make decisions about dividend policy; they don't currently pay a dividend. Stock buybacks – they have to make decisions on how are they going to turn this cash or create value for the shareholder," said Feinseth
3. Enhance Google's credibility on Wall Street: This may be Porat’s most important task and the one she was specifically recruited to do. She has the experience to follow through on this.
She was the lead banker on a number of tech IPOs, including Amazon, eBay and Priceline Group, earlier on her career. Most notably, she helped Morgan Stanley get back on its feet after the storm it endured during the financial crisis.
Quoted on investors.com, Rosenblatt Securities analyst Martin Pyykkonen said, "We look to her experience most recently in the financial industry and earlier in tech industry banking as a strong hybrid base for effectively deploying Google's capital going forward and enhancing credibility (with better transparency) with institutional investors."
Porat has a tall order to fill but she has the confidence of investors. "But it also requires a CFO who understands the investment needs and opportunities of a rapidly evolving technology sector leader. Porat fits the bill," concluded Pyykkonen.
Click here to read more about Ruth Porat in the latest edition Business Review USA
Marketing matters: from IBM to Kyndryl
Prior to joining Kyndryl as Chief Marketing Officer, Maria had a 25-year career at IBM, most recently as the tech giant’s CMO where she oversaw all marketing professionals and activities across North America, Canada and Latin America. She has held senior global marketing positions in a variety of disciplines and business units across IBM, most notably strategic initiatives in Smarter Cities and Watson Customer Engagement, as well as leading teams in services, business analytics, and mobile and industry solutions. She is known for her work with teams to leverage data, analytics and cloud technologies to build deeper engagements with customers and partners.
With a passion for marketing, business and people, and a recognized expert in data-driven marketing and brand engagement, Maria talks to Business Chief about her new role, her leadership style and what success means to her.
You've recently moved from IBM to Kyndryl, joining as CMO. Tell us about this exciting new role?
I’m Chief Marketing Officer for Kyndryl, the independent company that will be created following the separation from IBM of its Managed Infrastructure Services business, expected to occur by the end of 2021. My role is to plan, develop, and execute Kyndryl's marketing and advertising initiatives. This includes building a company culture and brand identity on which we base our marketing and advertising strategy.
We have an amazing opportunity ahead at Kyndryl to create a company brand that will stand apart in the market by leading with our people first. Once we are an independent company, each Kyndryl employee will advance the vital systems that power human progress. Our people are devoted, restless, empathetic, and anticipatory – key qualities needed as we build on existing customer relationships and cultivate new ones. Our people are at the heart of this business and I am deeply hopeful and excited for our future.
What experiences have helped prepare you for this new opportunity?
I’ve had a very rich and diverse career history at IBM that has lasted 25+ years. I started out in sales but landed explored opportunities at IBM in different roles, business units, geographies, and functions. Marketing and business are my passions and I landed on Marketing because it allowed me to utilize both my left and right brain, bringing together art and science. In college, I was no tonly a business major, but an art major. I love marketing because I can leverage my extensive knowledge of business, while also being able to think openly and creatively.
The opportunities I was given during my time at IBM and my natural curiosity have led me to the path I’m on now and there’s no better next career step than a once-in-a-lifetime-opportunity to help launch a company. The core of my role at Kyndryl is to create a culture centered on our people and growing up in my career at IBM has allowed me to see first-hand how to prioritize people and ensure they are at the heart of progress in everything Kyndryl will do.
How would you describe your leadership style?
I believe that people aren't your greatest assets, they are your only assets. My platform and background for leadership has always been grounded in authenticity to who I am and centered on diversity and inclusion. I immigrated to the US from Chile when I was 10 years old and so I know the power and beauty that comes from leaning into what makes you different from other people, and that's what I want every person in my marketing organization to feel – the value in bringing their most authentic self to work every day. The way our employees feel when they show up for themselves authentically is how they will also show up for our customers, and strong relationships drive growth.
I think this is especially true in light of a world forever changed by the pandemic. Living through such an unprecedented time has reinforced that we are all humans. We can't lead or care for one another without empathy and I think leaders everywhere have been reminded of this.
What’s the best leadership advice you’ve received?
When I was growing up as an immigrant in North Carolina, I often wanted to be just like everyone else. But my mother always told me: Be unique, be memorable – you have an authentic view and experience of the world that no one else will ever have, so don't try to be anyone else but you.
What does success look like to you?
I think the concept of success is multi-faceted. From a career perspective, being in a job where you're respected and appreciated, and where you can see how your contributions are providing value by motivating your teams to be better – that's success! From a personal perspective, there is no greater accomplishment than investing in the next generation. I love mentoring younger professionals – they are the future. I want my legacy as a leader to include providing value in work culture, but also in leaving a personal impact on the lives of professionals who will carry the workforce forward. Finding a position in life with a job and company that offers me a chance at all of that is what success looks like to me.
What advice would you give to your younger self just starting out in the industry?
I've always been a naturally curious person and it's easy for me to over-commit to projects that pique my interest. I've learned over years of practice how to manage that, so to my younger self I’d say… prioritize the things that are most important, and then become amazing at those things.