CFP Board has realized these accomplishments with 20 percent fewer FTE staff (62 today) than employed by the organization ten years ago (75 then). A survey of CFP® professionals (which reflects a statistically significant sample of CFP® professionals versus a few unnamed sources in Mr. Simonoff’s article) reveals that they recognize CFP Board’s recent accomplishments to advance the certification and profession:
• 91 percent say they are very satisfied with their career choice in financial planning – a six point increase from the 2011 survey;
• 92 percent say they are very satisfied with their decision to pursue CFP® certification; and
• nearly two-thirds (63 percent) of CFP® professionals report that the service they receive from CFP Board meets their expectations – a dramatic increase from 2011, when that number was 48 percent.
Although I appreciate Mr. Simonoff’s kind words for me and fellow board member, Joe Votava, articles such as this one – abounding in factual inaccuracies, loose interpretation of facts, anonymous quotes and unfounded speculation – do a disservice to the many dedicated leaders who have served and continue to serve the financial planning profession through CFP Board, including my other colleagues on the Board of Directors and Mr. Keller. I feel compelled to specifically address a few of the most egregious accusations.
Veiled suggestions that Mr. Keller has engaged in any conflicts of interest are patently wrong and offensive. The Board has complete confidence in Mr. Keller’s leadership. His salary is determined by the Board of Directors’ CEO Oversight Committee after a careful process that includes consideration of a report by an external compensation consultant that benchmarks executive compensation for similarly situated non-profit financial services organizations. The fact that Mr. Keller’s salary has increased since 2009 (which is incorrectly reported by Mr. Simonoff) solely reflects the successful execution of Board-established CEO goals and marketplace benchmarks.
Mr. Simonoff also irresponsibly mischaracterized CFP Board’s limited and appropriate work with the Financial Planning Standards Board (FPSB), which owns the CFP mark outside of the United States. As the largest member of FPSB (45 percent of all CFP certificants worldwide are in the U.S.), two to three top leaders of CFP Board attend two annual FPSB meetings per year (the remainder of the work is done by teleconference) to help other countries grow to create a worldwide profession, as well as protect the potential reputational harm to the CFP brand and to preserve our most important asset: ownership of the CFP marks in the U.S. All travel, whether international or within the U.S., is consistent with corporate travel policies that ensure costs are appropriate and reasonable.
But most offensive are Mr. Simonoff’s misguided and inflammatory charges that the Board of Directors is not fulfilling its oversight obligations. Our organization has rigorous governance policies and procedures in place, including review and oversight of the budget and CEO salary. The Board is vigilant in exercising its fiduciary obligation to ensure that CFP Board’s policies, procedures, operations and expenditures are aligned with Board priorities, are consistent with best practices for a non-profit organization, and are singularly aimed at CFP Board delivering on its mission.
CFP Board is committed to transparency and effective communication with CFP® professionals, others in the financial planning profession and the public. We are proud of our outstanding work, and remain devoted to furthering our mission. The strength of the CFP® certification is a direct result of CFP Board’s resolution to ensure that the requirements remain thorough and relevant, as well as the dedication of our CFP® professionals to abide by CFP Board’s high standards. CFP Board will continue to pursue those efforts that are in the best interest of both the financial planning profession and the public – today and for years to come.
Ray Ferrara is chairman of the CFP Board.