Gary Adamson, Adamson Advisory
It’s a process.
by Gary L. Adamson
Adamson Advisory
There is a constant topic of conversation both inside firms and at almost every conference. It is the age-old question of partner compensation and “how do you do it”. As our firm grew, we evolved from everyone is equal, to the “slip of paper” approach, to a more goal driven, performance based system. Every firm is a little bit different but the issues surrounding how you split the pie are pretty consistent.
How you choose to solve the partner comp question in your firm depends on a number of things including size, number of partners and where you are on the firm age/evolution spectrum. There is a movement to more performance and goal driven systems even in smaller practices, and moving away from “we’re all the same.” We all know that the reality is that we’re not.
There is also a movement away from formula based systems. It is very difficult if not impossible to find the mathematical equation that will consistently result in a fair outcome. There are just too many variables that don’t fit well in a formula.
Regardless of the details of your plan, several rules or themes will hold true:
CONTINUE READING – SOURCE CPA Trendlines email 5/2/2012
