Reference no: EM131279911

A CEO of a company heard about your qualifications as an IS consultant, and approached you for advice. He told you that he is about to install information systems in the company, and he had a good candidate for heading this activity. This candidate was highly recommended by a friend of his. During the process of interviewing the candidate, he was impressed by her skills and personality and was about to offer her the job. At the conclusion of the interviews, the candidate told him that a condition for accepting the offer, she must be appointed CIO and have “a seat at the executive table”. In thinking through the consequences of appointing the IT manager as the CIO, the CEO realized that there were significant costs involved. The position at the executive level would entitle her to a higher salary, and other benefits which the other executive level executives receive. In the CEO’s view, as he told you, the other executives, (HR, finance, and operation VP’s), deserve the additional compensation since their contribution to the organization and its operation and performance is well defined and has been recognized and appreciated for many years. The contribution of IT is not as tangible. ”IT just provides some reports” he said, and these reports may not justify the cost. As a consultant that is fully aware of the business perception of IT, and of the difficult economic situation, you realize the importance of cost saving. What will be your advice to the CEO? Explain with rationale.