Selecting the best partner compensation method; pay should be structured to achieve a firm's goals.
Journal of Accountancy › Vol. 172 Nbr. 6, December 1991
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Selecting the best partner compensation method; pay should be structured to achieve a firm's goals.
The issue of how partners should be compensated--and for what services or efforts--can cause contention at CPA firms. Disagreement frequently erupts along these lines:
FOUNDING PARTNER: "I started this firm with one $200 client and worked very hard--and starved--for years to build it. If not for that, the younger partners wouldn't even have a job here. And the reputation I have built brings in most of the clients. So I should always get the highest partner compensation." NEW PARTNER: "I acknowledge your efforts and sacrifices to start and build the firm. But you did that for yourself, not for me. And you've already b...See the full content of this document
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