top trends in comp for new partners and lateral hires

$100 bill jigsaw puzzle with piece missingplus a stern warning.

by marc rosenberg
partner comp: art & science

pay for newly merged-in and laterally hired partners invites special consideration.

more on partner compensation: paying part-time partners | how to pay non-equity partners | 5 types of partner evaluations | how large and small firms allocate income | partner pay: recapping the compensation systems | 5 other systems for paying partners | why firms use partner comp formulas | 3 tiers of compensation | partner compensation: an art, not a science | why most partner comp systems are performance-based
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merged-in partners working full time who are not retirement-minded are commonly paid no less than they made at their own firm.
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what partnership gets you (and doesn’t)

now or later keys shows delay deadlines and urgencyalso: the eligibility, costs, obligations and benefits of partnership.

by marc rosenberg

sometimes partners ask for more than they reasonably should expect. here’s a rundown of what a partner is and is not entitled to:

more on partnership: equity vs. non-equity partners | new partner vs. manager: what’s the difference? | research results: how firms pay new partners | keys to bringing in new partners

 

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a partner is entitled to:
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paying part-time, work-at-home partners

woman smiling with boy with backpackhow to handle perks, vesting and other issues.

by marc rosenberg
partner comp: art & science

among the unique partner compensation issues that arise at cpa firms are when partners choose to work part time.

more on partner compensation: how to pay non-equity partners | 3 rules for promotion to partner | should the mp be the highest paid partner? | integrating partner comp with strategic planning | partner pay: the declining importance of book of business | 3 non-performance-based comp systems | 3 subjective compensation systems | partner compensation 101 | how partners view compensation: it’s not all about the money

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the following chart summarizes how firms compensate two major types of part-time partners:
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cpa firm partners: equity vs. non-equity

apple and orange on a seesawand why you might need both.

by marc rosenberg
how to bring in new partners

there are reasons to have both equity and non-equity partners.

more on partnership: new partner vs. manager: what’s the difference? | 23 key provisions in a partner buyout | what does buy-in buy? | how to structure partner buy-in

browse all at partnerinsider.com

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let’s run down both and then look at a comparison.

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how to pay non-equity partners

businessmen standing on dollar billdeferred compensation is on the rise.

by marc rosenberg
partner comp: art & science

there are obvious differences between equity and non-equity partners, including how they are compensated.

more on partner compensation:3 rules for promotion to partner | the 8 basics for data-based partner performance evaluations | how to set the managing partner’s compensation | crash course: operating a compensation committee | partner pay: open vs. closed compensation systems | the 3 best partner compensation formulas

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however, the differences aren’t as great as many people think.

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