37 Pages Posted: 22 Feb 2012
Date Written: January 20, 2012
This study investigates the impact of job complexity and firm, as well as CFO-specific performance, on CFO compensation. We find job complexity and overall firm performance affects both CFO salary and bonus, while CFO-specific performance affects CFO bonus. Specifically, we find that CFOs are not only rewarded when their firms meet or beat earnings targets, but they get incremental rewards for managing earnings and/or expectations to allow their firms to meet or just beat those targets.
Suggested Citation: Suggested Citation
Balsam, Steven and Irani, Afshad J. and Yin, Jennifer, Impact of Job Complexity and Performance on CFO Compensation (January 20, 2012). Accounting Horizons, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1989006
By Ray Ball