An Accounting Program Merit Pay Survey

Abstract

Basing the compensation of accounting professors on merit pay in order to encourage better teaching, research and service is controversial. Before the effectiveness of merit-based salary plans can be examined empirically, it must be determined which accounting programs use such a system. In this study, the 852 accounting programs in the United States were surveyed to identify the methods in use to adjust the salaries of individual professors. Initial findings indicate that schools using a merit system usually do not also offer time in grade increases and that doctoral granting schools and AACSB accredited schools are more likely to use a merit system.