The significance of role definition and specificity on performance-based compensation: the case of accounting partnerships
Baskerville, Rachel F.; Beechey, John
Date: 1 June 2007
Presentation
Abstract
The objective of this research is to explore the impact of the failure of provision of clear and stable role definitions on performance-based compensation arrangements. A recent historical perspective on compensation agreements in CA partnerships revealed an unexpected instability, diversity, and a range in the roles undertaken by ...
The objective of this research is to explore the impact of the failure of provision of clear and stable role definitions on performance-based compensation arrangements. A recent historical perspective on compensation agreements in CA partnerships revealed an unexpected instability, diversity, and a range in the roles undertaken by partners in CA firms. This report provides documentation of this instability, and suggests 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.
Finance and Accounting
Faculty of Environment, Science and Economy
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