Posts Tagged ‘CPA-Partner-Compensation’
From Frustration to Growth: How to Shift to Performance-Based Pay
A firm I worked with this year said, “We have a pay-equal partner compensation system, and the cracks are starting to show! No one is taking advantage of it, but it is frustrating the high performers, and I have no leverage to improve my lower-performing partners. I want a comp system that rewards performance. How…
Read MoreGetting Buy-In on Partner Compensation Changes
You may have seen my interview earlier this year with Russell Shapiro on the topic of partner compensation. We spent close to 45 minutes discussing various aspects of allocating CPA firm income. One of the many topics we discussed was how to get buy-in on changes to a partner compensation system. Change management is the…
Read MoreDifficult Partner Dynamics Part 2: Compensation Effects and Silver Linings
Welcome back to our analysis of insights from the Difficult Partner Dynamics Quick Poll conducted in August 2025. If you missed our first blog in this series, catch up here. In this post, we explore how unresolved partner issues affect compensation and, more importantly, look at ways to resolve them. We’ll also share real-life examples…
Read MoreUpdating Partner Compensation Systems at Accounting Firms: How to Plan and Implement a Change
Originally produced by Levenfeld Pearlstein LLC. In a recent conversation on changing partner compensation systems in accounting firms, Russell Shapiro, Partner at Levenfeld Pearlstein LLC, speaks with Kristen Rampe, Managing Partner of Rosenberg Associates, about updating systems, including how to plan and implement a change and the questions that arise during these types of changes.…
Read MoreCPA Firm Partner Pay: Is Base Comp at Risk & How Much is Base Pay?
The complexities involved in allocating income to a group of owners is not for the faint of heart. With numerous decisions to create a plan that fairly rewards individuals for their contributions to the firm’s profits, it’s easy to fall back on what you’ve heard others doing. In some cases, those plans might work out…
Read MorePartner Comp Earnings Gap: What’s the Right Spread?
There are many reasons for a sizeable spread in partner income at a CPA firm. For example, at a firm that has 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. No spread…
Read MoreWho Decides How Partner Income Is Allocated?
Multi-partner CPA firms need to ensure the right person or people make comp allocation decisions. In addition to the mechanism used to allocate income, such as a formula or the criteria used in partner evaluations, firm owners need to specify who will determine the allocation. Sometimes that means “who’s on the comp committee,” but it…
Read MoreHow Partner Compensation Systems Have Changed in 20 Years
The CPA profession has witnessed profound transformations in firm management. This blog aims to shed light on the sea of changes in partner income allocation methods, showcasing how these changes have influenced the overall dynamics of CPA firms. We will reflect on the changes over the past 20 years and, more importantly, delve into the…
Read MoreWhy Most Firms Have a Big Gap Between Highest and Lowest Paid Partner
The challenge to us Several managing partners have recently asked us what spread between the highest and lowest paid partner is appropriate. We use the term “partner” to mean equity partner. First, some facts The latest Rosenberg Survey showed the ratio of highest to lowest paid partner: Over $20M – 3.9 to 1 $10–$20M –…
Read MoreLinking Employee Compensation to Performance
Firms use compensation as a standard reward for performance in areas such as meeting billable hours expectations, performing at a high technical level, delivering exceptional client service, taking on additional training or leadership duties, or mentoring staff. Just as importantly, firms use compensation to give employees something to look forward to. Employees are motivated to…
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