partner comp earnings gap: what’s the right spread?
how do you get it right at your firm?
by kristen rampe
partner comp: art & science
there are many reasons for a sizeable spread in partner income at a cpa firm. for example, at a firm with both a founder nearing retirement and a first-year partner, the spread would be wide. some firms are the opposite, with two to four founding partners agreeing to share all profits equally. there is no spread there.
more on partners: thirteen traits of partners you’ll want to keep | six rules for keeping partners happy and productive | five keys in compensating new managing partners | top 20 tough choices for the partner comp committee | voting on ownership basis? three better methods | what partners do and don’t deserve | tell potentials what partnership takes | five steps to transition to partnership
exclusively for pro members. log in here or 2022世界杯足球排名 today.
for most multipartner and multigeneration accounting firms, the situation gets more complicated. you’ll have some high performers and some who are on cruise control. you’ll have ones contributing notably more dollars to the bottom line and more to future leaders’ development.
but what about two partners who contribute relatively the same? should their income allocation be similar? how similar?
read more →