The recession has caused all sorts of difficulties for CFOs: falling earnings, tumbling stock prices and, occasionally, knotty negotiations with lenders.
For most of them, it has also brought tougher targets for earning their bonuses. Many companies, as part of their CFO bonus plans, also adopted earnings targets of zero or a number just above zero during the recession, according to a study by Michal Matejka, an accounting professor at the W. P. Carey School of Business. Thus a CFO would have received no bonus if his firm reported a loss.
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