Shareholders’ ire over what they considered excessive executive compensation may have led companies to retreat from pay practices like tax gross-ups and to temper the value of severance packages, but stock-based compensation that can make executives very rich is still going strong.
In some part that’s because, in addition to being powerful performance motivators, stock and option awards are non-cash compensation. A company can record heavy bottom-line losses and still be a Wall Street darling, because of the weight savvy investors accord to free cash flow and to non-GAAP financial results that exclude stock-based compensation.
It’s a CFO’s worst nightmare: Expected and actual results fail to converge, and managers are left unable to understand the cause and adapt to the variance. Numerous “why” questions are asked, but often there are no good answers. Is there a fundamental problem with the appeal of our products/services? Did a competitor make a move we didn’t expect? Is it due to macro factors that are out of our control? How much does it matter to the next forecast on the future value of our business? It can be difficult to find viable signals amid the noise.
Moody’s says the job cuts will reduce DuPont’s Delaware workforce by a “significant” 24% and are a credit negative for the Wilmington area.
The luxury jeweler cut its earnings guidance for the fiscal year ended January 31, lowering adjusted earnings by about 10%.
There’s no excuse today for a finance chief to abdicate responsibility for security, says CFO Steffan Tomlinson.
Here are three prerequisites for understanding why forecasts miss their mark and producing more accurate ones.
Net income rose 9%, to $3.34 billion.
The oil markets could be left with a surplus of 1.5 million barrels a day in the first half of 2016, says the IEA.
WhatsApp is going to find a different way to monetize its 900 million monthly active users.
The U.S government budget deficit that the CBO is currently projecting is $130 billion higher than the one that the agency projected in August.
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