{"id":21224,"date":"2012-07-26t09:36:54","date_gmt":"2012-07-26t13:36:54","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=21224"},"modified":"2024-10-01t11:59:29","modified_gmt":"2024-10-01t15:59:29","slug":"20-decisions-for-your-firms-new-compensation-committee","status":"publish","type":"post","link":"\/\/www.g005e.com\/2012\/07\/26\/20-decisions-for-your-firms-new-compensation-committee\/","title":{"rendered":"20 decisions for your firm&#8217;s new partner compensation committee"},"content":{"rendered":"<p><strong>partners need to be something more than production machines.<\/strong> [checklist included.]<strong><br \/>\n<\/strong><\/p>\n<p><em>by marc rosenberg, cpa<\/p>\n<p>increasingly, cpa firms are adopting the compensation committee system for allocating partner income.\u00a0 firms are finding that systems such as formulas, pay based on ownership percentage or pay-equal no longer work.\u00a0 when we compare the usage of the compensation committee today to 5 years ago, the increase in usage ranges from 16% to 26%.<\/p>\n<p>if there is one overarching cause for this significant trend, it\u2019s that firms are understanding that their partners need to be something more than production machines.\u00a0 in addition to bringing in business, managing a client base and working billable hours (all of which <\/em><em>continue<\/em> to be important values in a compensation committee), partners need to excel in intangible areas such as helping staff grow and develop, developing specialized expertise and teamwork.\u00a0 the compensation committee is one of the best systems available to cpa firms to allocate income based on this diverse array of performance criteria.<\/p>\n<blockquote>\n<p style=\"padding-left: 30px;\"><strong>more marc rosenberg practice management trends and guidance:<\/strong> <a title=\"permanent link to: three ways to break partner gridlock in an accounting firm\" href=\"\/\/www.g005e.com\/2012\/07\/19\/why-one-partner-one-vote-isnt-always-the-best-way-to-run-a-firm\/\">three ways to break partner gridlock in an accounting firm<\/a>\u00a0 | <a title=\"permanent link to: what partners are entitled to\u2026\" href=\"\/\/www.g005e.com\/2012\/07\/12\/what-partners-are-entitled-to\/\">what partners are entitled to, and what they\u2019re not entitled to |<\/a> <a title=\"permanent link to how to make partner?\" href=\"\/\/www.g005e.com\/2012\/07\/05\/how-secrets-hurt-a-cpa-firm\/\">how to make partner?<\/a>\u00a0 |\u00a0 <a title=\"permanent link to why accounting firm partners are \u201cpopping prozac like m&amp;m\u2019s\u201d\" href=\"\/\/www.g005e.com\/2012\/06\/26\/why-accounting-firm-partners-are-popping-prozac-like-mms\/\">why accounting firm partners are \u201cpopping prozac like m&amp;m\u2019s\u201d\u00a0 |\u00a0 <\/a><a title=\"permanent link to the 15-item checklist for your next partner retreat\" href=\"\/\/www.g005e.com\/2012\/05\/29\/the-15-item-checklist-for-your-next-partner-retreat\/\">the 15-item checklist for your next partner retreat |\u00a0 <\/a><a title=\"permanent link to five key responsibilities for a new partner\" href=\"\/\/www.g005e.com\/2012\/05\/24\/five-new-responsibilities-for-the-new-partner\/\">five key responsibilities for a new partner<\/a><a title=\"permanent link to planning a partner retreat for real results\" href=\"\/\/www.g005e.com\/2012\/05\/07\/planning-a-partner-retreat-for-real-results\/\">\u00a0 |\u00a0 planning a partner retreat for real results\u00a0 |\u00a0 <\/a><a title=\"permanent link to 6 steps to get your business to the next level\" href=\"\/\/www.g005e.com\/2012\/04\/29\/6-steps-to-get-your-business-to-the-next-level\/\">6 steps to get your business to the next level<\/a><a title=\"permanent link to the 10 biggest mistakes in reading map statistics\" href=\"\/\/www.g005e.com\/2012\/03\/07\/rosenberg-10-mistakes\/\">\u00a0 |\u00a0 the 10 biggest mistakes in reading map statistics<\/a><a title=\"permanent link to re-engineering partner accountability\" href=\"\/\/www.g005e.com\/2011\/04\/26\/re-engineering-partner-accountability\/\">\u00a0 |\u00a0 re-engineering partner accountability\u00a0 |\u00a0 <\/a><a title=\"permanent link to marc rosenberg: why cpas aren\u2019t making more money [video]\" href=\"\/\/www.g005e.com\/2011\/02\/01\/marc-rosenberg-why-cpas-arent-making-more-money-video\/\">marc rosenberg: why cpas aren\u2019t making more money [video]\u00a0 |\u00a0 <\/a><a title=\"permanent link to marc rosenberg: slow learners need not apply\" href=\"\/\/www.g005e.com\/2010\/11\/02\/marc-rosenberg-slow-learners-need-not-apply\/\">marc rosenberg: slow learners need not apply<\/a>\u00a0 |\u00a0 <a title=\"permanent link to 10 to-do\u2019s for a partner buyout\" href=\"\/\/www.g005e.com\/2005\/04\/21\/firm-success-primping-for-a-partner-buyout\/\">10 to-do\u2019s for a partner buyout<\/a><\/p>\n<\/blockquote>\n<p>when firms begin operating their new compensation committees, there is a lot of initial confusion and bewilderment about how to get started.\u00a0 for example: <a href=\"\/\/www.g005e.com\/2012\/07\/26\/20-decisions-for-your-firms-new-compensation-committee\/#more-21224\" class=\"more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>partners need to be something more than production machines.<\/strong> [checklist included.]<strong><br \/>\n<\/strong><\/p>\n<p><em>by marc rosenberg, cpa<\/p>\n<p>increasingly, cpa firms are adopting the compensation committee system for allocating partner income.\u00a0 firms are finding that systems such as formulas, pay based on ownership percentage or pay-equal no longer work.\u00a0 when we compare the usage of the compensation committee today to 5 years ago, the increase in usage ranges from 16% to 26%.<\/p>\n<p>if there is one overarching cause for this significant trend, it\u2019s that firms are understanding that their partners need to be something more than production machines.\u00a0 in addition to bringing in business, managing a client base and working billable hours (all of which <\/em><em>continue<\/em> to be important values in a compensation committee), partners need to excel in intangible areas such as helping staff grow and develop, developing specialized expertise and teamwork.\u00a0 the compensation committee is one of the best systems available to cpa firms to allocate income based on this diverse array of performance criteria.<\/p>\n<blockquote>\n<p style=\"padding-left: 30px;\"><strong>more marc rosenberg practice management trends and guidance:<\/strong> <a title=\"permanent link to: three ways to break partner gridlock in an accounting firm\" href=\"\/\/www.g005e.com\/2012\/07\/19\/why-one-partner-one-vote-isnt-always-the-best-way-to-run-a-firm\/\">three ways to break partner gridlock in an accounting firm<\/a>\u00a0 | <a title=\"permanent link to: what partners are entitled to\u2026\" href=\"\/\/www.g005e.com\/2012\/07\/12\/what-partners-are-entitled-to\/\">what partners are entitled to, and what they\u2019re not entitled to |<\/a> <a title=\"permanent link to how to make partner?\" href=\"\/\/www.g005e.com\/2012\/07\/05\/how-secrets-hurt-a-cpa-firm\/\">how to make partner?<\/a>\u00a0 |\u00a0 <a title=\"permanent link to why accounting firm partners are \u201cpopping prozac like m&amp;m\u2019s\u201d\" href=\"\/\/www.g005e.com\/2012\/06\/26\/why-accounting-firm-partners-are-popping-prozac-like-mms\/\">why accounting firm partners are \u201cpopping prozac like m&amp;m\u2019s\u201d\u00a0 |\u00a0 <\/a><a title=\"permanent link to the 15-item checklist for your next partner retreat\" href=\"\/\/www.g005e.com\/2012\/05\/29\/the-15-item-checklist-for-your-next-partner-retreat\/\">the 15-item checklist for your next partner retreat |\u00a0 <\/a><a title=\"permanent link to five key responsibilities for a new partner\" href=\"\/\/www.g005e.com\/2012\/05\/24\/five-new-responsibilities-for-the-new-partner\/\">five key responsibilities for a new partner<\/a><a title=\"permanent link to planning a partner retreat for real results\" href=\"\/\/www.g005e.com\/2012\/05\/07\/planning-a-partner-retreat-for-real-results\/\">\u00a0 |\u00a0 planning a partner retreat for real results\u00a0 |\u00a0 <\/a><a title=\"permanent link to 6 steps to get your business to the next level\" href=\"\/\/www.g005e.com\/2012\/04\/29\/6-steps-to-get-your-business-to-the-next-level\/\">6 steps to get your business to the next level<\/a><a title=\"permanent link to the 10 biggest mistakes in reading map statistics\" href=\"\/\/www.g005e.com\/2012\/03\/07\/rosenberg-10-mistakes\/\">\u00a0 |\u00a0 the 10 biggest mistakes in reading map statistics<\/a><a title=\"permanent link to re-engineering partner accountability\" href=\"\/\/www.g005e.com\/2011\/04\/26\/re-engineering-partner-accountability\/\">\u00a0 |\u00a0 re-engineering partner accountability\u00a0 |\u00a0 <\/a><a title=\"permanent link to marc rosenberg: why cpas aren\u2019t making more money [video]\" href=\"\/\/www.g005e.com\/2011\/02\/01\/marc-rosenberg-why-cpas-arent-making-more-money-video\/\">marc rosenberg: why cpas aren\u2019t making more money [video]\u00a0 |\u00a0 <\/a><a title=\"permanent link to marc rosenberg: slow learners need not apply\" href=\"\/\/www.g005e.com\/2010\/11\/02\/marc-rosenberg-slow-learners-need-not-apply\/\">marc rosenberg: slow learners need not apply<\/a>\u00a0 |\u00a0 <a title=\"permanent link to 10 to-do\u2019s for a partner buyout\" href=\"\/\/www.g005e.com\/2005\/04\/21\/firm-success-primping-for-a-partner-buyout\/\">10 to-do\u2019s for a partner buyout<\/a><\/p>\n<\/blockquote>\n<p>when firms begin operating their new compensation committees, there is a lot of initial confusion and bewilderment about how to get started.\u00a0 for example: <a href=\"\/\/www.g005e.com\/2012\/07\/26\/20-decisions-for-your-firms-new-compensation-committee\/#more-21224\" class=\"more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":1339,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[2374,3120],"tags":[2429,575,93,572,38,1416],"class_list":["post-21224","post","type-post","status-publish","format-standard","hentry","category-pay-compensation","category-pro-member-exclusive","tag-earnings","tag-leadership","tag-management","tag-pay","tag-salary","tag-wages","membership-content","access-restricted"],"acf":[],"yoast_head":"<!-- this site is optimized with the 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