Recession Brings Partners Under Closer Scrutiny

Source: CPA Trendlines

The following is a complete reprint, reproduced with permission, of an article in CPA Trendlines.

In this video, Marc Rosenberg explains how firms are beginning to take a closer look at partner accountability. According to Rosenberg, in recent years many firms were making so much money that they didn't have the time or inclination to consider partner accountability as perhaps they should have. Now that the market is tighter, partner accountability is gaining new interest among firms and firm leaders.

Rosenberg says that at present, accountability remains largely undefined in firms of $10 million to $20 million and exists primarily in the form of partner compensation. As a consultant, Rosenberg sees many weak partners who are being overpaid because firms are not addressing accountability adequately. Now some of these partners are under pressure from firm leaders who are instituting what Rosenberg describes as good management techniques that would have helped with profitability and a more appropriate distribution of earnings even prior to the recession.

To watch the video, go to “Re-Engineering Partner Accountability.”

From CPA Trendlines, http://cpatrendlines.com, April 26, 2011.