Marc Rosenberg is a nationally known consultant, author and speaker on CPA firm management, strategy and partner issues. He is President of his own consulting firm, The Rosenberg Associates, Ltd.
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Category Archives: Partner Compensation
The heart and soul of the Compensation Committee (CC) method for allocating partner income is this:
The system can only work if the people being judged are
willing to trust the judges. Period. If the partners aren’t
comfortable with this, then they should not use the CC. Continue reading
I RECENTLY RECEIVED THIS QUESTION: In developing a new partner compensation system, you have spoken about how most firms break down total partner income into three tiers: Interest on capital, base salary and bonus. We seem to be stuck on how to determine what the base salaries should be for each of us. What are other accounting firms using as a base salary?
A reader queries: We are trying to restructure our compensation plan. I was wondering if you have any insight on “compensation theory” that might help us?
Rosenberg replies… Continue reading
Except for periodic economic downturns, most firms evolve through many growth stages over time. Firm size changes often trigger modifications of their management practices. The system for allocating partner income is a prime example. Here are several best practices for partner compensation … Continue reading
When firms are small or in their early stages of evolution, the focus is necessarily on survival and production. But as firms enter their “mature” phase of evolution, more is needed from the partners than production. How can a firm align partner compensation with strategic planning goals?
If partner compensation isn’t THE most frequent topic on conference agendas, it certainly is near the top. Why is this subject so enduringly fascinating?
Here are some observations based on my experiences consulting with hundreds of CPA firms on partner compensation. Continue reading
For those of you hooked by the title of this blog, I’m sorry to disappoint you with that answer.
In allocating partner income, a firm needs to look at all performance attributes of each partner. Continue reading
To many, it’s almost impossible to separate “partnership” from “democracy.” Many partners in CPA firms believe strongly that the firm should be managed in a highly democratic manner.
Democracy is a good thing. But like most good things, if taken to the extreme, the results can be disastrous.
Here’s an example….
Increasingly, CPA firms are adopting the Compensation Committee system for allocating partner income. Firms are finding that systems such as formulas, pay based on ownership percentage or pay-equal no longer work. When we compare the usage of the compensation committee … Continue reading
Baby boomer partners are rapidly approaching retirement age, creating a huge demographic shift within their firms. One result of this is a dramatic increase in new managing partners at firms. Many firms are skipping a generation and turning the reins … Continue reading