Incentives Ought to Make the CFO's Job Easier

Ericson, Richard
June 2003
Financial Executive;Jun2003, Vol. 19 Issue 4, p47
Academic Journal
The article reveals that appropriate incentives aid in the financial function's mission within the corporation. Bonuses generally depend on performing against budget-based goals. The longtime planning may be harmed by pay-related biases. With the right incentives, managers know they are spending their own cash when they offer big capital outlays, acquisitions, new products or other initiatives. This ownership dynamic can be achieved using a range of value-base designs, by factoring in capital while setting incentive goals and by increasing the effective time frame of the company's incentive policy.


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