OUTLOOK & ANALYSIS

Two CPA Firm Committees that Need Explaining: Management and Executive

What to do when democracy no longer works.

When firms are still small or just starting out, the partners often share a culture of democracy, shared burdens, personal freedom, and the opportunity for high earnings. But all that changes if the firm becomes successful.

In this article, Marc Rosenberg, author of “CPA Firm Management and Governance:”

  • Identifies four key factors of a start-up firm’s culture.
  • How those factors change with success and growth.
  • The development of management and leadership committees.
  • The functions and roles of a management committee.
  • The functions and roles of an executive committee.
  • How they differ.
  • Where a compensation committee fits in.
  • 11 key duties for the executive committee.
  • 5 major decisions reserved for the full partner group.