Can there be any more emotional topic than partner compensation?It seems that no matter what a firm partner is paid, there is always the issue of relative pay. In other words, how much did I get paid in comparison to you? If I received more than you, I feel good, and if I received less, I don't. It makes no difference that the disparity may be minimal.

How, then, do you overcome this ongoing comparison and annual emotional disruption? Many of the compensation systems used by firms today are out of date. For example, equal pay, the lockstep approach or the managing partner deciding do not address the issues of job families, individual performance and skills required. Employees and partners are never equal in skill or value to the firm, and being at the firm the longest (lockstep or seniority) doesn't necessarily make one the most highly paid.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access