pay & compensation

make accountability a process

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man and woman reviewing a documenteveryone performs better when someone else has oversight.

by bill reeb and dominic cingoranelli
卡塔尔世界杯常规比赛时间 / succession institute

setting up an “accountability and goal process” always sounds much easier than it actually is to implement. so for those who already think this process would be painful, just know that you still are probably underestimating the amount of agony in store.

more on performance management: accountability requires clear expectations | accountability is for everyone | succession plan requirements | base retirement on today’s operations | who decides what? | how retired partners are robbing their own firms | how involved should retired owners be? | firms say what would change retirement pay | 4 ways to create more capacity | how to find a partner’s replacement | action plans for transitioning partners | partner retirement and the war for clients | best practices for mandatory retirement | how retirement issues affect succession planning | succession: the questions to care about 

this leads us to the standard question, “if this is so awful, why would anyone do it?” the answer is both simple and abstract.
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5 other systems for paying partners

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money falling from the sky; moneyon whitewhy balanced scorecard is mbo in new clothing.

by marc rosenberg
partner comp: art & science

there are many partner compensation formulas, some performance-based and some not, some more subjective than others.

more on partner compensation: 3 non-performance-based comp systems | the 3 best partner compensation formulas | 11 points in designing a partner comp system | what partners earn and how they earn it | partner compensation: an art, not a science | how partners view compensation: it’s not all about the money | why most partner comp systems are performance-based

the systems below are less common than others, but some firms are attracted to them, especially small firms.
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pay varies when performance varies

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closeup shot of a caliper measuring the word "goals"plus ways to measure both objective and subjective performance criteria (yes, it can be done).

by bill reeb and dominic cingoranelli
卡塔尔世界杯常规比赛时间 / succession institute

an important point to keep in mind is that we, as human beings, have good months and bad ones, good years and bad ones.

more on performance management: accountability requires clear expectations | accountability is for everyone | succession plan requirements | base retirement on today’s operations | who decides what? | how retired partners are robbing their own firms | how involved should retired owners be? | firms say what would change retirement pay

what is going on in our personal lives has a lot to do with how we perform in our professional ones. therefore, if someone is going through a difficult time, such as a divorce, death in the family, major conflicts with extended family, etc., we can expect those events to spill over into our work life.
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3 non-performance-based comp systems

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businessman sitting on scales with stack of coins in other trayhint: they don’t eliminate arguments.

by marc rosenberg
partner comp: art & science

the common thread to non-performance-based systems is that partners’ compensation is not based on their performance, but on other factors that have nothing to do with performance. there are three main systems of this type:

more on partner compensation: the 3 best partner compensation formulas | why firms use partner comp formulas | 3 tiers of compensation | partner compensation 101| what partners earn and how they earn it | partner compensation: an art, not a science | how partners view compensation: it’s not all about the money | why most partner comp systems are performance-based

  • ownership percentage
  • pay all partners equally, or nearly so
  • seniority

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accountability includes partners

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manager dangling carrots in front of staffdeliver not only rewards but sanctions.

by bill reeb and dominic cingoranelli
卡塔尔世界杯常规比赛时间 / succession institute

let’s take a close look at what accountability might look like.

more on performance management for pro members: accountability requires clear expectations | accountability is for everyone | who decides what? | firms say what would change retirement pay | action plans for transitioning partners | how retirement issues affect succession planning | how partner ratings factor into equity | cpa firm performance assessments: 15 core competencies, 21 questions

for partners, accountability is best described as having a system in place that rewards partners for
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