There is something about to happen that most companies are totally unprepared for with tax reform. How do I know? I was right in the middle of the impact of tax reform on corporations during President Reagan’s TRA (Tax Reform Act) of 1986. There is no doubt many of today’s CFOs and corporate tax executives are totally unprepared for what is to come under President Trump’s tax plan. President Trump’s tax reform is guaranteed to create many new jobs in corporate tax just like it did in 1986. Here is why…
Throughout Silicon Valley, I was being retained by company executives at Apple Computer, Hewlett Packard, Intel, Fairchild Industries and many others to hire more corporate tax experts to study the impact of tax reform on their organizations in 1986. The companies who hired in-house corporate tax professionals benefitted considerably from these initiatives. The reason is all of these changes have an impact and you need the resources to figure out how they affect each organization and its entities around the world. Tax reform will create many new tax jobs and opportunities for the tax experts in the profession. Companies unprepared will lose millions in tax savings to the government!
Tax experts have a much better handle on the impact of tax laws than anyone else in the market. They see the bottom line quicker than any other because they are interested in gathering the facts and looking at the results. There are likely some very interesting reforms in the new tax bill and the companies who hire the talent to figure it out will be way ahead in the long run. It is more important than ever that every CFO have the very best tax organization possible to protect them. This means having the very best corporate tax team and giving them the resources they need to succeed. The corporate tax department is where you want to increase your headcount if you are serious about keeping company profits!
The smart CFOs will start hiring now so they do not find themselves in the unenviable position of the war for tax talent that is to come. Do not leave your already overworked corporate tax executive with less help when more work is about to land on their desk. Finding top tax talent with a wide breath of technical experience is not easy. Years ago you could hire someone out of public accounting who had a wide range of skills, now the emerging talent pool has highly specialized tax skills in one area. The landscape has changed! While many born in the 1950s still work 60 hour work weeks, new generations are leaving the tax profession as they discover the demanding lifestyle. History is about to repeat itself and many of you will be unprepared for the war for tax talent!
Also, corporate tax professional’s compensation should not be confused with accounting and finance salaries. Pay corporate tax professionals well because the cost to an organization which loses tax executives is high. Our Corporate Tax Compensation Report provides an insightful view of what you should be compensating your senior tax executives. CFOs need to get it right with your tax organizations – or you will lose your best talent to other companies in the upcoming war for tax talent.
Stay ahead of the competitive environment that will arise with tax reform. It will affect us all! If you currently have a need for your tax organization, please contact firstname.lastname@example.org to discuss our highly specialized retained tax executive search services.
Have a question? Call 858.999.0053 or email me to arrange a time to discuss your needs. We are here to help you!