Citrin Cooperman's acceptance of private equity funding in 2021 helped usher in a new era of PE ownership in accounting, as it became one of only a few firms pioneering the kind of investments and ownership structures that have since become more common across the profession.
Not as typical, however, are the financial benefits this transaction has spawned for all of the firm's employees.
Citrin Cooperman offers "P units" (for "participation units") to all staff, in a program designed to give each one a stake in the firm's success, and that firm leaders call unique to the profession.
P units were first rolled out to higher-level employees after PE firm New Mountain Capital first acquired a majority interest in the Top 25 Firm in 2021, but the program was expanded firmwide following Blackstone acquiring a stake from New Mountain in early 2025.
"After the move to Blackstone, we wanted to reward all employees at Citrin Cooperman," said CEO Alan Badey. "We convinced Blackstone that everyone should share in a piece of that growth. At Citrin Cooperman today, every single person that works here has a piece of the Citrin Cooperman pie."
That includes all of the firm's 3,592 employees, both in the U.S. and India.
When employees receive their P units, they have no value, Badey explained, "and as the organization grows in value, you grow into the value of those shares. If today the firm is trading them at $1 per unit and it grows $3, your own value of units is plus $2."
"Each level inside the firm is the level of unit participation associated with that level," he continued. "Whether staff-level or director-level value, there are a different number of units associated."
The units have vesting provisions, as the firm "wants to reward employees; we want them to stay," said Badey. The units vest in two ways: by performance and time, and employees relinquish them if they leave the firm.
"There are other avenues to gain additional units," explained chief people officer Melissa Hartshorn. "For everyone, it's based on level, but they [can gain] additional units over the course of time, with a promotion or on a discretionary basis, for those going above and beyond in really contributing to the firm in strategic and value-added [ways]."
One example of this, Hartshorn shared, was when Citrin Cooperman rolled out new software over a year ago. "There were a number of champions in each office, beyond billable time, who were mentoring staff, and were really active in their role of making the rollout successful," she recalled. "They
really went above and beyond day to day, so we rewarded them by level, and set thresholds. The office managing partner and service line leaders were nominating those folks; [they] put them forward for nomination."
Full participation
The program was established to accomplish two main goals, according to Badey.
"No. 1, it fosters an unbelievably great culture; it shows who we are as an organization," he explained. "We want all employees to participate, along with investors and partners. They do get excited — they like it, the participation. Our industry is somewhat old school, [usually rewarding] partners. It's nice to push things down and have them participate, even the receptionists in our office. I think that's fantastic."
"The second thing," Badey continued, "is it actually turns into real dollars. On the first transaction, many millions of dollars got paid out to those people. It's quite a nice reward in helping the firm continue to grow."
Firm employees do feel appreciated, reported Hartshorn.
"They were shocked initially, in a really positive way," she said. "It really means something to colleagues, staff. There's a pride from a self and cultural standpoint, of shared success and collaboration, innovation. The rollout for everyone has really made an impact."
The program has also boosted all-important recruitment efforts, she added: "In market recruitment there has been an increase, particularly with efforts in India. We have gotten it out in the market there, including resume submissions, links to LinkedIn profiles, Indeed. It's the same in the U.S., and twofold in India. It's been really well received."
As the accounting profession continues to grapple with a talent shortage, Badey touts Citrin Cooperman's P units as an incentive to the next generation for more than just the financial boon.
"It's really important to recognize that the world has changed," Badey mused. "The way things used to work 30-plus years ago — it's just different today. Being able to get younger people involved in the mission, the strategy, all working together to drive a particular outcome for the organization — it's been very, very powerful. We are not a technology company, we are not handing out early-stage Microsoft shares, we are still an accounting firm. But it's the same concept, seen at any technology company, in the mission of the firm."
