How to Operate a Compensation Committee

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“Over the years, I have purchased several of your resources. Your newsletter topics and teasers are always timely regarding issues I am handling at my firm. It's like you're reading my mind, thank you!”

Janet Hartung Renfert, CPA, Managing Shareholder
Porter & Sack CPAs
Madison, WI

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Increasingly, CPA firms are realizing that the old compensation formulas no longer work, that performance “intangibles” need to be recognized, and that their compensation systems need to be performance-based. As a result, more and more firms are adopting compensation committees. This book answers the questions: What are Compensation Committees? How do they work? Why have they become so popular?

Topics include:

  • Characteristics of a good system
  • Structuring partner compensation
  • The link to strategic planning
  • Data reviewed by the CC
  • Communication is key
  • The role of partner evaluations
  • The role of the firm’s core values
  • Partner goal setting
  • Make-up of the committee
  • Examples of partner roles
  • Performance criteria for partners
  • Open vs. closed compensation systems
  • Decisions that the CC needs to make
  • Compensation Committee Timetable

 

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