How to build a better partner compensation plan
Partner compensation plans have evolved significantly from the formula days of the finder, minder, and grinder. Today, more emphasis is placed on tying compensation to the firm’s strategic plan. Today’s compensation plans not only allocate compensation based on an individual partner’s revenue contribution but also reward those partners who help the firm enhance its ability to serve clients, achieve its strategic goals, and build capacity for the future.
The challenge in designing the right system is ensuring it motivates the partners to deliver the initiatives the firm needs to be successful. Compensation should motivate and reward productive behavior and outcomes—and discourage nonproductive behavior and outcomes. Read more on AICPA Store.