The Managing Partner's Role (continued)

Source: Public Practice 

In the final column of a four-part series, Bill Reeb discusses issues related to compensation of the managing partner. According to Reeb, the MP's compensation plan should be tailored to the position and should focus on achieving the firm's strategic and tactical objectives. Some individual performance goals can be measured, but the MP's incentive package should focus on overall firm performance. “The key here,” Reeb explains, “is that you don't want an incentive system for the managing partner that is overly focused on individual goals, because the real value of this position is in driving firmwide change.”

The article goes on to address several issues, including:

• Do you have the right person in the MP role?
• How large a book of business should the MP maintain while serving in that role?
• Which clients should the MP retain?
• How do you motivate the MP to achieve the firm's objectives?

For the complete article, read “The Job of Managing Partner – Part 4.” 

From Public Practice, Texas Society of CPAs, August 2014, www.tscpa.org.