{"id":46294,"date":"2016-02-23t05:01:54","date_gmt":"2016-02-23t10:01:54","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=46294"},"modified":"2018-03-05t23:26:00","modified_gmt":"2018-03-06t04:26:00","slug":"involved-retired-owners","status":"publish","type":"post","link":"\/\/www.g005e.com\/2016\/02\/23\/involved-retired-owners\/","title":{"rendered":"how involved should retired owners be?"},"content":{"rendered":"

\"senior<\/a>those still doing work should be under contract.<\/strong><\/p>\n

by <\/span><\/i>bill reeb<\/span><\/i><\/a> and <\/span><\/i>dominic cingoranelli<\/span><\/i><\/a>
\n卡塔尔世界杯常规比赛时间 \/ succession institute<\/span><\/i><\/a><\/p>\n

regarding involvement of retired owners in the firm, we asked this question: \u201cwhich of the following best describes the involvement of retired owners in the firm?\u201d some 42\u00a0percent\u00a0say they have no influence and no involvement.<\/p>\n

more on growth & succession for pro members<\/a>:<\/b> firms say what would change retirement pay<\/span><\/a> | <\/span>how to find a partner\u2019s replacement<\/span><\/a> | <\/span>best practices for mandatory retirement<\/span><\/a> | <\/span>7 succession questions to ignore for now<\/span><\/a> | <\/span>the pitfalls of equity allocation and reallocation<\/span><\/a> | <\/span>what having your employees\u2019 backs means<\/span><\/a><\/p>\n

\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

but the answers to a dozen other questions were more interesting\u00a0and potentially problematic. we think there are only five possible “right” answers. the rest just make things complicated and undermine a firm’s ability to advance.<\/p>\n

here are the results of the\u00a0survey:<\/strong>
\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
answer<\/th>\n% in 2012<\/th>\n% in 2008<\/th>\n% in 2004<\/th>\n<\/tr>\n
retired owners have no involvement and no influence in firm operations.<\/td>\n42%<\/td>\n36%<\/td>\nna<\/td>\n<\/tr>\n
retired owners are still active in the community and have a formal role of being an ambassador for our firm.<\/td>\n20%<\/td>\n16%<\/td>\nna<\/td>\n<\/tr>\n
retired owners continue to manage client relationships.<\/td>\n19%<\/td>\n16%<\/td>\n26%<\/td>\n<\/tr>\n
retired owners do what they have always done, but just work fewer\u00a0hours.<\/td>\n17%<\/td>\n17%<\/td>\nna<\/td>\n<\/tr>\n
retired owners still work on some of their old clients, but as a manager because another partner handles the relationship.<\/td>\n17%<\/td>\n23%<\/td>\nna<\/td>\n<\/tr>\n
retired owners are on an annual contract with the firm that has to be renewed each year with specific allowable activities they can perform.<\/td>\n17%<\/td>\nna<\/td>\nna<\/td>\n<\/tr>\n
the firm, as a sign of respect, allows retired owners to continue working even to the point of their skills diminishing, but we closely monitor their work.<\/td>\n8%<\/td>\n4%<\/td>\nna<\/td>\n<\/tr>\n
retired owners do not operate under a special agreement and are allowed to continue working for the firm until they are asked to leave.<\/td>\n6%<\/td>\n10%<\/td>\nna<\/td>\n<\/tr>\n
retired owners are invited to board\/management meetings, but don’t have a vote.<\/td>\n6%<\/td>\n7%<\/td>\n9%<\/td>\n<\/tr>\n
retired owners are invited to board\/management meetings and while they don’t have a vote, they are still very influential.<\/td>\n5%<\/td>\n3%<\/td>\nna<\/td>\n<\/tr>\n
retired owners are commonly invited to board\/management meetings and still vote.<\/td>\n1%<\/td>\n2%<\/td>\nna<\/td>\n<\/tr>\n
retired owners still do pretty much what they did before they retired.<\/td>\n4%<\/td>\n4%<\/td>\nna<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

in our opinion, the right answers to this question are:<\/p>\n

    \n
  1. retired owners should have no involvement or influence in firm operations; they should not be members of leadership groups, nor should they be attending board\/management meetings.<\/li>\n
  2. retired owners should be active in the community and acting as an ambassador for our firm as long as they are being paid a retirement benefit.<\/li>\n
  3. retired owners should not manage client relationships \u2013\u00a0<\/span>except it is not uncommon for firms to allow a nominal amount of revenue to continue to be managed by the retired owner, made up of clients who are 1) specifically identified, 2) very small clients (no large clients), 3) long-term friends or family of the retiring owner and 4) not deemed important to the firm.<\/li>\n
  4. retired owners can still work on some of their old clients, but only as a manager because another partner handles the relationship.<\/li>\n
  5. retired owners are on an annual contract with the firm, with specific allowable activities they can perform and that has to be renewed each year.<\/li>\n<\/ol>\n

    now if you compare the right answers to the answers that we captured in the survey, as you can see, there are a number of policies that need to be put in place right away to protect the firm and position the retiring partner to continue to provide value in retirement.<\/p>\n

    the larger the firm, the more likely it will be that some retired owners continue to work with the firm under annual contracts, performing specific, delineated duties. this is a good practice.<\/p>\n

    the smaller the firm, the more likely the retired owners can continue to do what they\u2019ve always done, but simply work fewer\u00a0hours, and the more likely they will be involved in or influencing firm operations. these are bad practices. so all firms should take a lesson from the playbook of the larger firms who, while they will find a specific role for talented owners to continue to work, simply don\u2019t allow retired owners to be part of or influence leadership.<\/p>\n

    when it comes to compensation of retired owners, the statement the respondents completed was, \u201cour firm\u2019s compensation system …\u201d<\/p>\n

    and the answers are:<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
    answer<\/th>\n% in 2012<\/th>\n% in 2008<\/th>\n% in 2004<\/th>\n<\/tr>\n
    has been\/is made available to retired partners only if both the retired partner still wants to work and the firm wishes to retain him\/her in some capacity.<\/td>\n41%<\/td>\nna<\/td>\nna<\/td>\n<\/tr>\n
    will pay retired owners a salary to continue working for the firm.<\/td>\n35%<\/td>\n24%<\/td>\n26%<\/td>\n<\/tr>\n
    will pay retired owners a percentage of their billings or collections for client work.<\/td>\n32%<\/td>\n23%<\/td>\n28%<\/td>\n<\/tr>\n
    will pay retired owners to bring in new business.<\/td>\n30%<\/td>\n14%<\/td>\n20%<\/td>\n<\/tr>\n
    has been\/is made available to every retired partner if they wish to continue working in some capacity within the firm.<\/td>\n14%<\/td>\n21%<\/td>\nna<\/td>\n<\/tr>\n
    will pay retired owners to remain active in the community as ambassadors for the firm; serve on boards of directors; be involved in charity events, etc.<\/td>\n12%<\/td>\n5%<\/td>\n6%<\/td>\n<\/tr>\n
    will pay retired owners for the book of business they continue to manage after retirement.<\/td>\n10%<\/td>\n4%<\/td>\nna<\/td>\n<\/tr>\n
    is the same for retired partners as it is for active partners.<\/td>\n5%<\/td>\n2%<\/td>\nna<\/td>\n<\/tr>\n
    pays retired owners for other; please specify.<\/td>\n9%<\/td>\n15%<\/td>\n11%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

    by this time in the process, the retiring owner should:<\/p>\n

      \n
    1. have properly transitioned his\/her clients,<\/li>\n
    2. no longer be managing clients (all clients who were assigned to them prior to retirement, except for the possibility of a few very small, nominal clients, should now be managed by the partners who were designated by the firm to take over the various client accounts)<\/li>\n
    3. not be involved in the leadership of the firm or attending, unless invited to a specific meeting, any leadership meetings<\/li>\n
    4. not be competing with the firm by setting up shop somewhere else<\/li>\n
    5. be under an annual contract with specific terms and duties described. the contract should automatically expire each year. without a renewal, the retired owner will know that his or her\u00a0tenure working for the firm is over.
      \ncommon acceptable terms of this contract are:<\/li>\n<\/ol>\n