Paying the Managing Partner: Today’s Trends and Best Practices

Businesswoman holding giant dollar symbolHow firms are balancing base salaries against billable hours.

By Bill Reeb and Dominic Cingoranelli

The managing partner should have a compensation plan unique to that position focused on carrying out the strategic and tactical objectives of the firm.

MORE ON PERFORMANCE MANAGEMENT: How to Elect a Managing Partner … and How to Fire Them | Why Accountability Falls to Managing Partners | How to Implement Strategy, Step by Step | How to Decide Who Decides Pay | Accountability Includes Partners | Succession Plan Requirements | How Retired Partners Are Robbing their Own Firms | 4 Ways to Create More Capacity | Partner Retirement and the War for Clients | Succession: The Questions to Care About | Hazards of Not Reallocating Equity

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While there can be some individual performance goals assessed, the bulk of the managing partner’s incentive package and focus should be on overall firm performance. The key here is that you don’t want an incentive system for the managing partner that is overly focused on individual goals because the real value of this position is in driving firmwide change.