What to Include in Your Succession Plan

Source: Accounting Today

Consultant August Aquila lays out some key succession planning ideas. And he says there is no rule that tells you when to start succession planning—but sooner is better than too late. Here are some things you should do:

• Require partners to announce their planned retirement dates—even five or 10 years ahead.
• Disallow participation in equity or earnings by partners who work past retirement age. Amend the partnership agreement if necessary.
• Penalize partners if they don’t transfer clients to younger partners.
• But don’t penalize them (by reduced compensation) if they do it.
• Implement a plan to convince clients they are served by the firm, not by a certain partner.
• Try to help partners deal with the possible traumatic effects of retirement.

For the complete article, click here and select the article “Succession Planning: Don’t Wait Til It’s Too Late” in the December 15, 2008, issue.

From Accounting Today, December 15, 2008, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.