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Peter Yeeda, a partner in a large CPA firm, has been approached by Katrina Yang, a manager, with the following recommendation for incentive bonuses for

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Peter Yeeda, a partner in a large CPA firm, has been approached by Katrina Yang, a manager, with the following recommendation for incentive bonuses for staff members. Yang recommends that the firm continue to pay each staff member a straight annual salary (which has been traditionally the only payment made) plus a bonus based on the staff member's ability to achieve a 10% reduction in time spent on each client's work. The firm would also pay a 5% finder's fee for any new client the staff member brings into the firm. Yang believes this will motivate the staff to work more efficiently, to sell the firm to new clients, and to service more clients in any given time period. This should also generate more revenue for the firm. How would you advise Peter Yeeda? What ethical issues should she consider? Peter Yeeda, a partner in a large CPA firm, has been approached by Katrina Yang, a manager, with the following recommendation for incentive bonuses for staff members. Yang recommends that the firm continue to pay each staff member a straight annual salary (which has been traditionally the only payment made) plus a bonus based on the staff member's ability to achieve a 10% reduction in time spent on each client's work. The firm would also pay a 5% finder's fee for any new client the staff member brings into the firm. Yang believes this will motivate the staff to work more efficiently, to sell the firm to new clients, and to service more clients in any given time period. This should also generate more revenue for the firm. How would you advise Peter Yeeda? What ethical issues should she consider

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