Jeff Epstein discusses why effective boards focus their time on decisions not yet made, drawing on his experience as a former public company CFO, board member at Autodesk, AvePoint, Okta, and Twilio (previously at Kaiser Permanente and Booking Holdings), and operating partner at Bessemer Venture Partners, where he leads Bessemer’s CFO Council and works closely with portfolio company CEOs and CFOs to share best practices.
(0:00) Intro
(1:45) About the podcast sponsor: The American College of Governance Counsel
(2:31) Start of interview
(3:04) Jeff's origin story. Began career in investment banking at First Boston before transitioning to a 25-year run as CFO across media companies (King World, Nielsen) and tech (DoubleClick, Oracle).
(7:16) Transitioning to Bessemer Venture Partners.
(8:40) Focusing on his board career and audit committee member. ValueClick, Priceline (Booking Holdings).
(11:06) Growth in Public vs. Private Markets
(12:49) The State of European Entrepreneurial Ecosystem
(13:41) The Role of BVP CFO Council
(15:31) Understanding California and Silicon Valley's Unique Culture
(18:44) AI's impact on the CFO role
(20:54) Dynamics Between CEOs and CFOs
(23:12) CFOs in Startups vs. Public Companies "We've observed that about 5% of the headcount of any co' at any size is in the finance dpt.")
(25:25) CFOs as Board Members
(27:35) Board decisions on CEO hiring and firing. "The CEO's role is to articulate an effective strategy, to hire a great team, and then to execute that strategy well using that great team." "If over five years the CEO has never changed their mind based on board input, you have the wrong board."
(30:36) On effective Board Composition
(32:41) Navigating Shareholder Activism, including his experience at Twilio
(37:35) The Debate: Stay Private or Go Public. "There are three ownership structures: public companies, PE-owned companies (where PE controls CEO), and founder-controlled private companies" "I think you're going to see quite a few companies stay private forever or for decades."
(39:30) Preparing for the Future of Venture Capital
(41:13) Optimizing Board Meeting Content. "Effective boards: 2/3 of time on未made decisions. Ineffective boards: show and tell." "Best-run companies: CEO encourages board members to meet with executives outside board meetings."
(45:50) Books that have greatly influenced his life:
(47:07) His mentors
(50:50) Quotes that he thinks of often or lives his life by "You want to live your life to have a seamless web of deserved trust" by Charlie Munger
(53:15) An unusual habit or an absurd thing that he loves. Reading adventure stories from G.H. Henty
(54:01) The living person he most admires: Warren Buffett
Jeff Epstein is an operating partner of Bessemer Venture Partners where he leads BVP’s CFO Council. He is a former CFO of Oracle and currently serves on the boards of Autodesk, AvePoint, Okta, and Twilio (previously at Kaiser Permanente and Booking Holdings).