Perhaps it is why they have not been promoted to CEOs. A survey of CFOs show that they are taking the odd position that the economy is getting better.

According to Reuters, "Compared with the previous quarter, 28.5 percent said they were more optimistic about the U.S. economy, up more than 7 percentage points from June." The poll was taken by Duke University and CFO Magazine and covers 1,300 financial chiefs from around the world.

Since the upbeat sentiment is hard to believe, it might be attributed to wishful thinking. Economists have been slow to call the current economic situation a recession, perhaps because they are hoping it won't be. Corporate officers usually forecast their results will get better and often tell the public that. It happened with several bank and brokerage executives last April. Things are improving, they said, but they were wrong.

Any normal executive looking at high commodity prices and rapidly dropping consumer demand would say that conditions will get worse for several quarters. Access to capital, even for large companies, is worse than at any time in over a decade. Banks do not want to risk capital even on "safe" lending.

If wishes were horses, all the beggars would ride. Someone is out of touch.

It is either CFOs or everyone else.

Douglas A. McIntyre is an editor at 247wallst.com.

Coming soon to investor email and mail boxes will be annual reports and proxy voting materials, complete with this year's shareholder resolutions. Hot topics this annual meeting season include the ever popular "say-on-pay." Shareholders are incensed that average or even sub-par executive performance and decision making is being handsomely rewarded with gigantic salaries and perks while they make due with crumbs. According to a recent article in CFO Magazine, 76 shareholder proposals dealing with executive compensation have made it onto the ballot.

Also on many ballots are shareholder resolutions dealing with socially responsible investing, particularly on matters revolving around the issue of global warming and/or climate change. So far, 56 shareholder resolutions have made it onto ballots. At least nine companies have taken steps to negate the need for such shareholder resolutions by rolling out policies addressing how the companies will cut back on greenhouses emissions and otherwise "go green."

As this is a presidential election year, there are at least 50 shareholder resolutions to force companies to disclose political contributions. These resolutions probably won't gain the necessary traction to force any action, but any resolution favoring greater corporate transparency is to shareholders' advantage.

New this year are numerous resolutions requesting senior management to disclose a company's exposure to subprime mortgage losses and secondary purchases in the mortgage market. This is a hot topic among investors right now, and many pension fund investors have taken hits. Look for union members to pressure their pension funds manangers on this one.

How will you vote on these subjects?

Investors will want to read the brief interview with Charles Schwab Corporation (NASDAQ: SCHW) CFO Joseph Martinetto in the March issue of CFO Magazine. Thanks in large measure to Joseph Martinetto and his predecessor, Schwab has not been battered much by the subprime mortgage mess. Despite being chided in The Wall Street Journal (subscription required) and other financial newspapers, Schwab passed on investing in subprime products. It is refreshing to read about a CFO who states up front that subprime products do not meet the risk/return profile Schwab needs in order to act on behalf of their clients, therefore Schwab has no intention of investing regardless of public mockery. Who's laughing now?

For FY 2007, Schwab stock price is up 32%, income from continuing operations in up 26%, and total client assets under management are up 17% to $1.4 trillion. A measurable chunk of those increases comes from new client business from investors burned by other financial services companies that seem to have forgotten how to price risk appropriately. Martinetto states that Schwab processes about $1 billion in securitites transactions daily, so there is enough operating risk in the business without seeking out additional financial risk. According to Martinetto, the US economy is in for another 4-6 quarters of uncertainty due to the fallout from the housing market slump and credit crunch. Schwab stock currently trades under $19 and may provide a suitable investment for more conservative investors seeking a measure of stability.

Investors will want to read a brief article by Marie Leone on this question in CFO Magazine. There are 4 main ways a company can choose to utilize its cash flow. Of course, a company can choose to reduce its debt load in order to preserve or raise its credit rating. Bondholders would certainly agree with this approach, though shareholders would more likely tolerate a higher leverage of net debt to EBITDA (Earnings before interest, taxes, depreciation and amortization). A company can also use its free cash flow to invest in opportunities that are an acceptable combination of growth potential vs. risk. A company can also choose to put some money back in shareholders' pockets by paying out a dividend or by repurchasing its stock.

There is not one single approach that is optimal in all circumstances. What matters most is that a company in fact has a transparent cash management policy in place that factors in the direct relationship between a company's target debt level and its share repurchases. It also matters that investors can find out what the company policy is.

'Tis the season to shop for just the right gift card. While gift cards may be a good deal for consumer recipients, depending upon state laws and company policies, gift cards may have a short-term downside for investors. As gift card giving becomes more popular, the liability problem of what to do about unredeemed gift cards grows as well. In some states, the value of an unused or partially used gift card must be turned over to the state as unclaimed property. The value of the gift card stays on the company's books as a liability. According to a recent article in CFO Magazine, 27% of all gift cards go unused, and perhaps as many as 50% are used only partially.

In states that do not have unclaimed property laws that apply to gift cards, companies must develop their own policies as to when an unused gift card can be moved over to operating income on the balance sheet. This transfer is called "breakage." There is currently no SEC regulation on breakage, so investors need to scan company balance sheets to determine the amount of rbeakage, which can be large. Ruth's Chris Steak House (NASDAQ: RUTH) claimed $2.2 million in breakage as operating income, dwarfed by the $39 million in breakage Best Buy (NYSE: BBY) transferred by analyzing historical patterns of gift card usage. Best Buy determined that after two years, an unused gift card is likely never to be used and can come off the liability side of the equation. Ben Bridge Jeweler, owned by Berkshire Hathaway (NYSE: BRK.A), has little problem with breakage. Most of its customers are only too happy to use their high value gift cards very promptly.