Compensation as a Strategic Asset

PREFACE

While there are many topics that generate a wide range of feelings and emotions in accounting firms, the topic of how to compensate firm owners is certainly one that generates some of the widest and most volatile emotions. So, why would anyone want to tackle a book about owner and staff compensation plans? It would seem to be a fool’s errand.

It has often been said a lack of money is the root of all evil. Maybe that explains, in part, why there is so much disagreement among CPA firm owners. We believe this book can help CPA firm owners and other professional services firm owners learn not only how to split the compensation pie, but significantly grow the pie by aligning compensation plans to the firm’s mission, vision, values and strategy.

Many firms struggle with compensation issues not merely because of the allocation of income, but also because of the overall economic performance of the firm.

This book then is as much about growing the pie as it is about using compensation as a strategic asset to split the pie in an effort to recruit, reward, and retain more effectively.

The best way to root out the so-called “evil” is to increase the amount of money the firm can allocate. While having more money to distribute may keep disagreements at a minimum, money alone does not necessarily mean the compensation system rewards the right things and allows for fair distribution. As we will demonstrate, money only solves part of the problem.

Compensation systems, programs, and methods ...