Impact of Job Complexity and Performance on CFO Compensation

37 Pages Posted: 22 Feb 2012

See all articles by Steven Balsam

Steven Balsam

Temple University - Department of Accounting

Afshad J. Irani

Washington and Lee University

Jennifer Yin

University of Texas at San Antonio

Date Written: January 20, 2012

Abstract

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

Balsam, Steven and Irani, Afshad Jeevan 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

Steven Balsam

Temple University - Department of Accounting ( email )

306 Speakman Hall
Philadelphia, PA 19122
United States
215-204-5574 (Phone)
215-204-5587 (Fax)

HOME PAGE: http://www.sbm.temple.edu/~drb/

Afshad Jeevan Irani

Washington and Lee University ( email )

204 West Washington Street
Lexington, VA 24450
United States
5404588628 (Phone)

Jennifer Yin (Contact Author)

University of Texas at San Antonio ( email )

Department of Accounting
San Antonio, TX 78249
United States
210-458-7090 (Phone)
210-458-4322 (Fax)

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