At DFIN’s second annual Activate Executive Summit, CFOs and finance leaders from various industries gathered amidst a backdrop of optimism and economic momentum. With the U.S. stock market nearing record highs, discussions of interest rate cuts and a recovering IPO market dominated the news. In addition, DFIN’s recently released CFO Outlook 2025 Survey showed widespread optimism among CFOs, with many eager to pursue M&A activity in the coming year.
As we kicked off the conference, Alyssa Levin of Nkarta, Johanna Mylet of Poseida Therapeutics, and Alan Stewart of SoundThinking joined our CFO Insights Unleashed panel to share their perspectives on the forces that will drive business decisions in 2025.
Panel moderator, Laura Petti, a media consultant and seasoned television producer who spent more than a decade working for CNBC, CNN, ABC News, and Fox, dove right in.
Image by Josh Edelson Photography
Tackling Major Market Concerns Head-On
Petti noted that while optimism about growth is strong, CFOs also face significant concerns. According to our survey, inflation tops the list, followed closely by cybersecurity risks, AI, and ESG regulations.
Levin said the concerns highlighted in the survey align with areas she is watching, pointing to pay inflation as one of the larger expenses for CFOs. Stewart echoed these concerns around paying and retaining employees, emphasizing that capable people are very expensive. Meanwhile, Mylet noted she is keeping an eye on the presidential election and how it will impact the market.
On cybersecurity, all the CFOs agreed - it is a critical expense and emphasized the need for strong, comprehensive programs, remarking that major costs in this important area are related to insurance, staffing, tools, and remediation. Stewart added that working with outside providers helps reduce cybersecurity expenses and insurance costs, and he noted that companies should not be afraid to turn to outside counsel for help.
All panelists emphasized the importance of partnering with companies like DFIN, whose robust cybersecurity, risk reduction, and time saving features provide peace of mind while keeping costs in check. “ActiveDisclosure is a great tool,” Mylet added. “The higher the cost of human capital goes up, the more we look to some of this software to help create efficiencies.”
Driving Business Forward with Tech Investments
The discussion naturally shifted to the technology solutions driving business outcomes. All panelists expressed enthusiasm for continuing investments in regulatory compliance software and tools like ActiveDisclosure that enhance efficiency and improve data analysis. Concerning the high cost of skilled workers, Stewart applauded his company’s use of innovative software to achieve more with less. “Since going public, I’ve only needed to hire five people,” Stewart said. “Once they’re trained, we rely on multiple software solutions to get things done efficiently and to be more compliant with various regulations.”
ESG compliance was another hot topic. While the SEC's stayed ESG regulations give some breathing room, Levin and Mylet noted that early-stage biotech is typically a low-carbon industry and has seen less pressure from stakeholders on climate disclosures. Stewart highlighted that SoundThinking will continue to build an ESG program, but not just for compliance with pending SEC climate disclosures. SoundThinking is also prioritizing the social component of ESG.
As a public safety company, SoundThinking tries to help communities become safer and avoid gun violence. “We put a lot of information about this in our ESG report,” said Stewart. “And we get this information by going out and speaking with these communities so we can accurately report on their needs and our impact.”
Shareholder communication was top of mind for the panelists and conference attendees.
To kickoff Activate, DFIN revealed its latest product innovation, ActiveDisclosure for Proxy, which helps DFIN clients deliver well-designed, brand-aligned proxy statements while saving time and money. In addition, we unveiled our 12th annual Guide to Effective Proxies, which offers best practices for companies creating their proxy statements.
The panelists emphasized the importance of proxy statements in showcasing their business to stakeholders. Levin said she plans to consult the Proxy Guide to address Say on Pay shareholder voting; while Mylet, whose company is now subject to the SEC’s new cybersecurity disclosures, is eager to leverage the resource. “DFIN is an incredible resource,” Mylet said. “If I need anything, I call my rep, and they point me in the right direction of what I’m looking for as it relates to my proxy. It’s that easy.”
Image by Josh Edelson Photography
Accelerating Growth in a Favorable Market
In the final segment, the CFOs shared their outlook on M&A activity. The CFO Outlook 2025 survey revealed a bullish stance from finance decision-makers, particularly CFOs, driven by favorable interest rates. Levin anticipates a rise in M&A, noting, “There are a lot of companies who are sitting on boatloads of cash because of the success of some of their products. They are out there looking to expand their pipelines and grow. There’s a lot of opportunity, so our outlook is positive.”
Mylet agreed, “My guess is that all of the pharma companies are out there doing their modeling and trying to determine when will be the right time to make a move.” Both Levin and Mylet have invested in innovative technologies to support scaling and readiness and said it’s important to be ready to transact at any time. “The stakes are high,” Mylet added. “Investors are looking under the hood, so companies will need to have more than an idea and a buzz word in the S1.”
Stewart, whose company has traditionally been on the buy-side of M&A deals called out how difficult it has been for smaller, private companies to secure funding, which may put them in a position of being purchased. Highlighting the role of collaborative technology in expediting deals, Stewart said, “You must be ready. It’s all under a cone of silence until the last minute, but when the time comes, you need to demonstrate real value to shareholders.”
As the panel concluded, moderator Laura Petti asked, “What will be the top issue for CFOs a year from now?” Collectively, the group believed that cybersecurity and the rapid advancement of technology will continue to be top of mind in 2025.
Mylet said, “amid the geopolitical issues happening right now, we need ready if there is a cyber-attack. We also need to be thinking about AI, how that’s going to change the workforce and when we will be willing to take on the risk of adopting AI.”
“We are on the cutting edge of automation, “Levin added. “This is going to create new labor dynamics, and these will be more apparent in a year’s time.”
Stewart added, “Generative AI is changing. There’s a ton of companies who say they are AI right now, but really aren’t. We all need to figure out how to build the right team of people who are going to help us best utilize AI and respond to cybersecurity incidents.”
