How Business Entity Type Affects Partner Income

Hands tear money isolated on white backgroundNot as much as you might think.

By Marc Rosenberg
Partner Comp: Art & Science

Here’s the challenge: Firms are rarely able to complete their internal accounting in time to finalize their income and make final partner distributions prior to the end of their fiscal year, which for 90 percent of all firms is Dec. 31.

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On Dec. 31 of each year, firms still have a sizeable bonus pool to allocate. By the time the entire compensation process is completed, it could be February or March.