Impact of Job Complexity and Performance on CFO Compensation

Balsam, Steven; Irani, Afshad J.; Yin, Jennifer

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Impact of Job Complexity and Performance on CFO Compensation

Accounting Horizons, Forthcoming

37 Pages Posted: 22 Feb 2012

See all articles by Steven Balsam

Steven Balsam

Temple University - Department of Accounting

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: 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