Financial Executives International (FEI) was founded in 1931 (previously Financial Executives Institute, and originally the Controllers Institute of America). FEI is a member service-oriented organization for senior-level financial executives in companies of all sizes, both public and private, and in all industries. FEI operates a separate nonprofit foundation: Financial Executives Research Foundation, which acts as a financial resource for members and foundation supporters. The FEI headquarters and full-time staff are located in Morristown, N.J.

History

FEI was founded in New York City in 1931 as the Controllers Institute of America. The organization renamed itself in 1962 to Financial Executives Institute to reflect the growth of responsibilities among financial executives into policy-making areas. As the global economy continued to expand in the 1960s, the group helped form the International Association of Financial Executives Institutes. By 2000, the organization had opened membership to financial executives from around the world and, thus, underwent another name change – Financial Executives International. In 1944, FEI created a separate foundation, Financial Executives Research Foundation (FERF), which performs impartial and independent research on financial and strategic-management topics. In 2011, FEI has 85 chapters in cities across the United States and Canada. Some of the organization’s largest chapters are located in Boston, Silicon Valley, New York, Dallas and Chicago. FEI is headquartered in Morristown, N.J., with an office in Washington, D.C. FEI Canada was established in 1973 to serve the needs of the growing Canadian membership and in 2011 consists of 11 chapters.

FEI counts senior-level business leaders among its members. Some notable members of FEI include:

• Lynn E. Turner, Senior Advisor and Managing Director, Forensic Accounting Practice, LECG; former SEC Chief Accountant;

• Jamie Miller, Vice President and Controller, General Electric Co.;

• Laura Wright, Senior Vice President Finance and Chief Financial Officer, Southwest Airlines Co.:

• Gerald Urichv, Director, External Reporting and Compliance, The Hershey Co.;

• John Davidson, Senior Vice President, Controller & Chief Accounting Officer, Tyco International Ltd.;

• Frank Brod, Corporate Vice President, Finance and Administration and Chief Accounting Officer, Microsoft Corp.;

• Mary Jo Green, Senior Vice President and Treasurer, Sony Corporation of America;

• Gracia Martore, President and Chief Operating Officer, Gannett Co., Inc.;

• Stephen Patrick, Chief Financial Officer, Colgate-Palmolive Co.;

• William Shenkir, Professor, University of Virginia’s McIntire School;

• Charles M. Holley, Chief Financial Officer, Wal-Mart Stores Inc.;

• Nick Cyprus, Vice President, Controller and Chief Accounting Officer, General Motors Co.;

• Stephen Cosgrove, Vice President, Corporate Controller and Chief Accounting Officer, Johnson & Johnson;

• Chris Ballinger, Chief Financial Officer, Toyota Financial Services (About FEI, 2011)

• Mark Buthman, Senior Vice President and CFO, Kimberly-Clark Corp.

Advocacy

One of FEI's missions is to support advocacy

Advocacy

Advocacy is a political process by an individual or a large group which normally aims to influence public-policy and resource allocation decisions within political, economic, and social systems and institutions; it may be motivated from moral, ethical or faith principles or simply to protect an...

 within the financial sector. FEI’s advocacy efforts include the activities of its national advocacy committees as well as its Government Affairs staff in Washington, D.C., and Accounting Policy staff in Morristown, N.J. FEI staff members are involved in information gathering and dissemination on a range of public policy and regulatory issues affecting financial executives. Advocacy topics have included:

• Corporate, pass-through and other areas of taxation and the tax system;
• Accounting/auditing standards and financial reporting;
• Finance and information technology;
• Pensions and health care;
• Government contracting; and
• Policy, including: energy, international trade, the federal budget and economic.

FEI was involved in the design of the Chief Financial Officers (CFO) Act in 1990. The organization traditionally supports legislation that enhances the business climate on local, national, and international levels.

FEI has also expressed its support for the Securities and Exchange Commission’s proposed roadmap for companies to file statements according to International Financial Reporting Standards (IFRS) by 2014. In a 2008 statement, FEI maintained that “as companies prepare to move forward with such a significant project [SECIFRS], a clear understanding of the end requirements are necessary before companies can develop the necessary systems and procedures to address the critical business issues.”

Sarbanes Oxley Act

The Sarbanes Oxley Act of 2002, also known as the “Public Company Accounting Reform and Investor Protection Act” is a U.S. federal law

Law of the United States

The law of the United States consists of many levels of codified and uncodified forms of law, of which the most important is the United States Constitution, the foundation of the federal government of the United States...

 that sets new or enhanced standards for all U.S. public company

Public company

This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...

 boards, management and public accounting firms. FEI became involved in this act due to the extensive research done on the matter by its foundation (FERF). (New York Times, 2007)

Center for Audit Quality Partnership

FEI has partnered with the Center for Audit Quality

Center for Audit Quality

The Center for Audit Quality is an autonomous public policy organization dedicated to enhancing investor confidence and public trust in the global capital markets...

 along with the Institute of Internal Auditors

Institute of Internal Auditors

Established in 1941, The Institute of Internal Auditors is a guidance-setting body. Serving members in 165 countries, The IIA is the internal audit profession's global voice, chief advocate, recognized authority, and principal educator, with global headquarters in Altamonte Springs, Fla., United...

 and the National Association of Corporate Directors

National Association of Corporate Directors

The National Association of Corporate Directors is an independent, not-for-profit membership organization, dedicated to serving the corporate governance needs of directors of public, private, and non-profit organizations. Founded in 1977, NACD is headquartered in Washington, D.C. and serves...

to develop fraud-fighting training tools. (Accountancy, 2011) Such training tools include a series of fraud hypotheticals, which will be customized for five sectors, including financial services, manufacturing, retail, telecommunications and technology. This program is set to launch in the fall of 2011.

FERF

The Financial Executive Research Foundation (FERF) was established in 1944 as a separate 501(c)(3) nonprofit educational organization. It serves as a source of financial solutions for the financial management profession. Its objectives include indentifying, developing and providing content through objective research to the FEI member and Foundation supporter in an accessible and practical format. (About FERF, 2011)
FERF staff members perform impartial and independent research on topics identified as of interest to FEI members.

External links

• http://www.financialexecutives.org
• http://www.ferf.org
• http://www.feicanada.org
• Trade Only Today, http://www.tradeonlytoday.com/home/513941-survey-cfos-optimistic-about-economic-growth, 2011
• Accounting Today, http://www.accountingtoday.com/news/28984-1.html, 2008