The Struggles of Hitting Market Compensation … Fairly

Four empty metal bucketsAvoid the temptation to "sprinkle" among "buckets."

By Domenick J. Esposito
8 Steps to Great

For the most part, managing partners at a large number of the best-run Top 100 firms below the Giant Four do an excellent job in splitting up their compensation pies.

MORE ON STRATEGIC PLANNING: Ineffective Partners and How to Address Them | Develop Home-Grown Future Leaders | How to Capitalize on the Trusted Business Advisor Opportunity | Leadership Must Be Persistent and Consistent | Using a High-Performance Business Framework | What a Client Service Plan Can Add | 36 Consulting Services You Might Be Overlooking | How to Drive Consistent Partner Behavior | CPA Firm Partner Performance: Different Activities, Different Metrics
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Their partner compensation system rewards performance and, at the same time, nurtures rising stars with lots of potential.
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Ineffective Partners and How to Address Them

Three office workers glaring at cameraConsider not just the current impact, but the future.

By Domenick J. Esposito
8 Steps to Great

Most accounting, tax and advisory CPA firm professionals who have demonstrated that they can help perpetuate an organization become partners between the ages of 35 and 42. In many cases, these same professionals retire from their firms as they approach the age of 60, 65 and 70.

MORE ON STRATEGIC PLANNING: Develop Home-Grown Future Leaders | Who Will Be the Next Category Killer? | Why Is Strategy Execution So Difficult? | Time Running Out for Succession Planning | The Benefits of a Client Situation Review | Capital Markets 101 | How to Implement Industry Practice Groups | What Is ‘Acceptable’ Performance?
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Many emotional and physical changes happen to us humans over the course of 25, 30 or 35 years. Sometimes for the good and sometimes for the bad, our personal lives, energy levels and productivity at the age of 35 usually are different than our personal lives, energy levels and productivity at the age of 65.
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How to Develop Home-Grown Future Leaders

A development academy might be your answer.

By Domenick J. Esposito
8 Steps to Great

When it’s time to make decisions about new partner admissions, here is what senior leadership at many small and mid-sized CPA firms often hear:

  • “If Mary doesn’t make audit partner this year, she will leave the firm. We can’t afford to lose her as she gets all the work done at ABC Manufacturing Corporation, who pays us over $300,000 a year. Without Mary, this client will leave the firm” and
  • “We need to make Joe a tax partner this year because he is the only one in the firm who understands 'C.' Without him, we will have a big hole in our tax department capabilities. It could put a big hurt on the firm.”

MORE ON STRATEGIC PLANNING: Who Will Be the Next Category Killer? | The Dangers of Low-Hanging Fruit | 10 Common Leadership Traps | Expand Your National and Global Geographic Reach | Show Clients How to Improve Working Capital
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In their guts, these leaders know that, while both Mary and Joe are solid professionals, there is little chance that either of them will develop beyond client service partners.
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Who Will Be the Next Category Killer?

Man climbing upward arrowsThe opportunity is there.

By Domenick J. Esposito
8 Steps to Great

Going from a merely good firm to a mid-market sustainable brand requires a tremendous amount of discipline and leadership.

MORE ON STRATEGIC PLANNING: The Dangers of Low-Hanging Fruit | How to Capitalize on the Trusted Business Advisor Opportunity | Leadership Must Be Persistent and Consistent | Using a High-Performance Business Framework | What a Client Service Plan Can Add | 36 Consulting Services You Might Be Overlooking | How to Drive Consistent Partner Behavior
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

The business, the basic governance and economic model, and its priorities are simple on the surface until the complexity of a partnership comes into play. Tried and true traditional business practices like strategy planning, performance management and compensation plans can take on unusual twists and turns when pulled out of shape by competitors and strong-willed partners.
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The Dangers of Low-Hanging Fruit

Pan of apples in woman's hands over green grassSeven questions to ask about new clients.

By Domenick J. Esposito
8 Steps to Great

It’s 2017 (hard to believe).

MORE ON STRATEGIC PLANNING: How to Capitalize on the Trusted Business Advisor Opportunity | Why Is Strategy Execution So Difficult? | Time Running Out for Succession Planning | The Benefits of a Client Situation Review | Capital Markets 101 | How to Implement Industry Practice Groups | What Is ‘Acceptable’ Performance? | 6 Measures of Partner Performance | Is HR Ready for Your Partner Pipeline? | Is Your Pyramid Upside Down? | Taking a Balanced Scorecard to Your Partners
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

Many mid-market firms are finalizing their numbers for 2016 and it appears to be shaping up to be a pretty good year with

  • organic growth averaging at 4 percent to 6 percent,
  • equity partner compensation seeing a modest increase principally through technology enhancements,
  • more and more work being shifted to India and
  • intense expense control.

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