Rewarding Partners for Seniority: Pros and Cons

What best serves the firm?

By Kristen Rampe

In our work with CPA firms on partner compensation, we have asked countless partners what they think about various performance criteria and whether or not they should factor into a partner’s allocation of income. Some examples of the performance criteria include firm management, business development, client service and billable hours. Another criterion we ask about is seniority or tenure.

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Some partners respond to our questionnaire indicating that seniority or tenure should be a factor in income allocation. Many partners believe it has no place. So, who’s right?

Posted on November 28, 2021

Kristen Rampe

About the Author

Kristen Rampe, CPA is the founder of Rampe Consulting. She works with CPA firms and practitioners across North America in the areas of practice management, leadership development, and partner advisory.

She is co-author of The Role of the Managing Partner.

Kristen started her career in public accounting and spent ten years helping companies report their financial results and comply with regulations. In 2011, she switched tracks to serve the CPA industry as a management consultant. She’s been awarded Woman to Watch by the California Society of CPAs/AICPA, 20 Under 40 by CPA Practice Advisor, and Ones to Watch (part of the Top 100 Most Influential list) by Accounting Today.

Today Kristen works with progressive CPA firm leaders and teams on projects such as partner compensation, partner agreements, individual coaching, workshops, and strategic retreat facilitation.

When not working with the accounting industry, you can find Kristen spending time with her family, enjoying the outdoors, or taking improv classes.

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