Dive Brief:
- British engineering and consulting firm John Wood Group said Wednesday that Arvind Balan, who became CFO of the company last year, has resigned following revelations that he incorrectly described his professional qualifications within “various statements in the public domain.”
- The company’s board of directors accepted the resignation “with immediate effect,” according to a press release.
- “Regrettably, I made an honest oversight with respect to the description of my professional qualification as a chartered accountant instead of a certified practicing accountant,” Balan said in the release.
Dive Insight:
Balan’s description of himself as a chartered accountant instead of a certified practicing accountant represents a “bold embellishment,” according to Shawn Cole, president of executive search firm Cowen Partners.
“In the U.K., a CA is far more prestigious and is the gold standard for senior finance roles,” he said in an email. Such a misrepresentation, “especially in a CFO role, is a major red flag. CFOs are expected to be precise and truthful, as their credibility directly impacts investor confidence and corporate governance,” Cole said.
The Wood Group’s release didn’t explain how Balan’s incorrect claims about his qualifications came to light or how the company missed the error. A company spokesperson declined to comment.
The news comes just days after the Wood Group found itself in the spotlight over financial troubles. On Friday, the company forecast negative cash flow for another year, which triggered a 40% nosedive in its stock price, according to Reuters. The company is listed on the London Stock Exchange.
Balan took over the finance reins of the engineering firm in April 2024, following the retirement of his predecessor, David Kemp.
Before joining the Wood Group, Balan served in finance leadership roles at Rolls-Royce and Shell.
A Wood Group press release announcing Balan’s appointment in October 2023 described him as a “chartered accountant” with an MBA from the Indian Institute of Management.
In Wednesday’s announcement, Balan said he decided to resign to minimize “distraction at this very pivotal time with our investors and lenders.”
“I continue to believe in the long-term potential of the company and its people,” he said.
The company said it will make an announcement on Balan’s successor in “due course.”
