Performance-Based Compensation: How an Oral History Can Inform Our Understanding of Accounting Partnership Income Allocation Models

Business School, University of Exeter, Accounting Working Paper No. 06/07

25 Pages Posted: 10 Aug 2008

See all articles by Rachel F. Baskerville

Rachel F. Baskerville

Victoria University of Wellington - School of Accounting and Commercial Law

John Beechey

affiliation not provided to SSRN

Date Written: February 27, 2007

Abstract

This research explores how an oral history can inform our understanding of accounting partnership income allocation models. Forty oral history interviews of CPA firm partners indicated a widespread impact from unclear and instable role definitions in performance-based compensation arrangements. The oral history interviews suggested partnerships adopted performance-based compensation systems without consideration of the extent to which the success of such systems depended on stable role specificity. This research has implications for corporations where the interests of the entity may be best served when top management undertake diverse or previously unspecified roles and activities, on an ad-hoc or opportunistic basis.

Keywords: New Zealand, Big 8, Big 4, accounting, income allocation, oral history, role definition, performance-based compensation

JEL Classification: M40, M50

Suggested Citation

Baskerville, Rachel F. and Beechey, John, Performance-Based Compensation: How an Oral History Can Inform Our Understanding of Accounting Partnership Income Allocation Models (February 27, 2007). Business School, University of Exeter, Accounting Working Paper No. 06/07 , Available at SSRN: https://ssrn.com/abstract=1213902 or http://dx.doi.org/10.2139/ssrn.1213902

Rachel F. Baskerville (Contact Author)

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand
006444636951 (Phone)
006444635076 (Fax)

HOME PAGE: http://www.victoria.ac.nz/sacl/staff/rachel-baskerville.aspx

John Beechey

affiliation not provided to SSRN ( email )

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