CEO pay and non-GAAP reporting are linked, study shows

Mon, 10 Dec 2018

By Jenny Ruth Dec. 10 (BusinessDesk) - The more highly paid the chief executives of publicly listed companies, the more likely they are to use figures that don’t conform to generally accepted accounting principles, according to a University of Otago study. Not only is the use of such non-GAAP figures increasing, but managers are more likely to use them when they miss their GAAP earnings benchmarks, the study found. “Firms experiencing a decrease in earnings demonstrate a stronger association between CEO cash compensation and the likeli...

Unlock all stories free for 10 days

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

We won’t charge for 10 days. You can cancel anytime with two clicks, an email or a phone call. Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].interval) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

You will be charged in 10 days unless you cancel beforehand.
We will remind you three times before charging you.
All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Politics

NZ-Thai partnership ‘significant’ in scope

An Asia expert says deal between nations is significant because of its breadth.

Dileepa Fonseka 4:20pm

Markets

'Wrong time for a pay rise?': NZX directors get 38% bump

Shareholders have approved a hike to NZX director fees despite opposition.

Oliver Lewis 4:00pm

'Wrong time for a pay rise?': NZX directors get 38% bump

Environment

Rainy 2022 drove down NZ's greenhouse gas emissions

Gross emissions fall for the third year in a row but are still above 1990 levels.

Greg Hurrell 4:00pm

Rainy 2022 drove down NZ's greenhouse gas emissions

Sponsored

Auckland's new "Midtown" taking shape

5-star hybrid workspaces, combined with the City Rail Link, are creating a revitalised inner-city zone designed to motivate workers back to the office.

Alberts

Sponsored

Building confidence and capability is the key to boosting productivity

In the pack houses of Hawke’s Bay apple growers, smart cameras scan the apples looking for blemishes and grading the fruit to ensure only the best is selected for domestic and international markets.

ASB