Global Accountancy Boss: Big Bonuses Are Toxic but CFO Personal Accountability is UnfairIBTimes UK

After the financial crisis and the flurry of banking scandals, governments have poured blame on bonuses and are holding more chief financial officers personally accountable for firms' misdemeanours.

However, speaking to IBTimes TV at the EIU CFO Summit, International Federation of Accountants CEO Fayez Choudhury said that while bonuses are partly to blame for the level of risk taking at companies, the extreme sway to holding senior management personally accountable for every company issue is unfair.

"The role of the CFO is currently in a state of flux as they evolved from bean counter to a fully fledged business partner that has led to questions over conflicts of interest and ethical practices," said Choudhury.

"However, the huge bonuses that executives have are toxic and can incentivise individuals to conduct unscrupulous behaviour. However, the CFO shouldn't be held accountable for every staff members action. I suppose though this is inevitably born out of any crisis that happens."

Choudhury added that the role has to be better defined in order for companies to remain complaint but to also install a healthy form of corporate culture.

"The minority think that CFOs should go back to balancing the books at a high level but for a successful company, there needs to be a balance between the controller over finances as well as being a steward in best practice," he said.