Why firms need comp committees and how some of them do it right.
by Marc Rosenberg, CPA
Author of How to Operate a Compensation Committee
CPA firms are increasingly turning to the use of formal compensation committees for a number of reasons. Chief among them: It’s the best way to achieve a balance between recognizing traditional production accomplishments and rewarding intangibles.
The compensation committee approach aligns the firm’s (1) strategic plan and core values with how partners are (2) evaluated and how they are (3) compensated. It motivates partners to produce what the firm needs them to produce.
Related: Compensation Issues for the New Managing Partner | 20 Decisions for Your Firm’s New Partner Compensation Committee | Three Ways to Break Partner Gridlock in an Accounting Firm | What Partners Are Entitled To, and What They’re NOT Entitled To | How to Make Partner? | Why Accounting Firm Partners Are “Popping Prozac like M&M’s” | More…
At most firms, there is a disconnect between these three functions. But at the better managed firms, they are integrated.
TO READ THE FULL ARTICLE
