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CFO Insights — Should FX swings affect incentive compensation?

Published on: Jul 16, 2015

The recent strengthening of the US dollar has caused a significant impact on corporate earnings at many US-based companies with significant foreign operations. The magnitude of the change also caught a lot of companies by surprise.

Most companies decided not to make major changes to their incentive calculations. But the question remains: Should unanticipated FX swings affect incentive compensation?

This issue looks at the different views on the issue of addressing the FX impact on incentive compensation and discuss how CFOs can contribute to the fairness debate.


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