Question

Describe how a chief financial officer(CFO) position for a professional football team should receive pay increases over time (consider different pay for performance strategies or seniority based pay increases). Explain a specific compensation structure that would motivate an individual in this position.

Answer 1

The pay of the CFO of a professional football team should receive pay increase based on seniority. This is a more logical and sensible way of increasing the pay of the CFO. The term compensation means the amount of money that is paid to an employee of the organization for the performance of his/her duties and responsibilities. The CFO has the following responsibilities:

• He manages the company's finances,
• Plans the finances of the company
• Manages financial risks
• Maintains records
• Carries out financial reporting

If a person performs these duties properly then he/she should receive the deserved amount of compensation. The CFO of a professional football team should therefore get his/her compensation based on seniority. The more experienced a person is in the field, the money they deserve to be paid. The experience makes them expert in the field and they are able to carry out their work in a better manner.

In order to motivate a CFO of a football team, profit sharing can be done. In other words, the better the football team plays and the more number of matches it wins will lead to earning more profit. The CFO can be given a portion of the profit earned by the team through the performance.