{"id":51612,"date":"2017-03-29t09:00:35","date_gmt":"2017-03-29t13:00:35","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=51612"},"modified":"2021-10-28t20:09:42","modified_gmt":"2021-10-29t00:09:42","slug":"13-points-good-compensation-plan","status":"publish","type":"post","link":"\/\/www.g005e.com\/2017\/03\/29\/13-points-good-compensation-plan\/","title":{"rendered":"13 points of a good compensation plan"},"content":{"rendered":"

\"man<\/a>does your plan pit partners against each other?
\n<\/strong><\/p>\n

by august j. aquila<\/i>
\nwhat makes a great partnership<\/i><\/a><\/p>\n

during the last 13 years i have focused a large part of my practice on helping firms develop compensation plans.<\/p>\n

more on great partnerships:<\/b> how mps can make a real difference<\/a> | 10 steps to transitioning to a new mp<\/a> | what managing partners should be doing<\/a> | do your partners pay their own way?<\/a> | 7 keys to becoming an equity partner<\/a> | how and why to achieve partner unity<\/a>
\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

a critical element in keeping partners engaged is having a compensation system that rewards them for doing the right things. here\u2019s what i found to be some of the best practices.
\n<\/p>\n

    \n
  1. every compensation plan should be constructed to help the firm enhance its ability to service clients, achieve its strategic goals and attract, reward and retain the right people. if a firm\u2019s plan does not accomplish these objectives, it needs to be restructured.<\/li>\n
  2. in my experience, there is no perfect compensation system. and we are not trying to create one. however, there are some systems that are better suited for keeping partners engaged, achieving the firm\u2019s strategic initiatives and vision, and rewarding for competency and character.<\/li>\n
  3. many practitioners ask about different compensation systems and their impact on individuals and firm performance. i am increasingly being asked about whether pay for performance\/merit-based systems works, given the move by a lot of firms to incorporate some element of performance-based pay and my answer is \u201cyes, but it depends.\u201d<\/li>\n
  4. different firms have different compensation systems that seem to work, but the systems firms adopt typically reflect their different cultures or the dominant personality of the managing partner.<\/li>\n
  5. a base pay that is competitive in the local\/regional\/national marketplace.<\/em> determining base pay is often a difficult exercise and the major questions that firms grapple with in determining base pay include:<\/li>\n<\/ol>\n