Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 35

Compensation for top executives (e.g., CEOs and CFOs) has become more variable over time. For example, recent data show that in large corporations only 20 percent of CFO pay is fixed and 80 percent is variable, based on companywide performance. Explain why you believe this type of reward plan has been chosen for CFOs of large companies.