10 Questions for Palo Alto Networks CFO Michael Lehman
Mon, January 09, 2012
IDG News Service — Name: Michael Lehman
Age: 61
Time with company: 1 year, 9 months
Education: Bachelor's degree in business administration from the University of Wisconsin
Company headquarters: Santa Clara, California, with several sales and support offices in Europe and Asia
Revenue: The company announced in August 2011 that it is well ahead of US$200 million in bookings run-rate
Number of countries: Customers in more than 50 countries
Number of employees total: 500
Number of employees the CFO oversees: 70
About the company: Palo Alto Networks is a network security company that offers next-generation firewalls that allow granular policy control of applications and content.
1. Where did you start in finance and what experiences led you to the job you have today?
I started with public accounting right after college when I went to PriceWaterhouse. I was there 13 years. They told me I wasn't going to be a partner and I was devastated because I wanted to be a partner, so I had to leave. Then I went to Sun Microsystems. I was there for six years before I became CFO and I had six different jobs while I was there. The most notable one is that I lived and worked in Hong Kong as finance director of Asia. That gave me a great window into how to do business in Asia and how to live outside of the United States. That role set me apart from everyone else when it came time to be CFO.
2. Who was an influential boss for you and what lessons did they teach you about management and leadership?
I would say the most influential boss for me was a gentleman named Kevin Melia. He was the CFO at Sun right before me, so he was my predecessor. He really taught me my fundamental philosophy, which is to hire great people who are as good or better than you and allow them to do their job. Give them the support they need and the resources they need and let them do their job, which frees me up to go do many other things.
In my career, what happened was the CEO gave me more and more responsibility. I went from being just CFO to managing HR, facilities, information technology, corporate planning and development, even our public planning efforts, [and] legal. I essentially broadened my role dramatically, so we actually wound up creating a role called vice president of corporate resources.
3. What are the biggest challenges facing CFOs today?
It's a combination of two things. Right now there is so much economic uncertainty that makes it difficult for CFOs and companies to plan long term. The volatility in the market, the volatility of customer demand -- it makes it more challenging than in any other three- to five-year period. That's one. I'd also say there is continued regulation and oversight that makes it difficult as well -- managing the demands for inspection and oversight from outside and adapting to the volatility in the market.
