To win big compensation packages, CFOs need their firms to win small

Media Outlet: 

strategy+business magazine

To earn large compensation packages, it pays for chief financial officers to aim low — meeting or just beating earnings expectations. According to a study led by Temple Fox School of Business Accounting Professor Steven Balsam, when CFOs manage earnings and expectations so that their firm’s results meet or slightly beat analysts’ targets, they receive about 40 percent more in bonus pay than they do when their company falls short of the mark.