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Comp Watch ’20: Raises and Bonuses Are Looking a Bit Paltry at RSM US

Posted on by Jason Bramwell

If we look back at the firms in ’Murica that have sent the most people packing during the COVID-19 pandemic, three immediately come to mind: Deloitte (obviously), Crowe, and RSM US, which had not one but two rounds of job cuts.

Those left standing at RSM must be feeling pretty resilient, having somehow dodged two heat-seeking missiles. But RSM management is still bringing the pain in other ways.

We’ve received a few tips on what’s going on at RSM regarding raises and bonuses this year. And Joe Adams’ troops are getting restless and frustrated, according to one RSMer:

Most of the people are very upset for the mixed messages from management. Starting with a message of “layoffs as a last resort,” then 3 weeks later the layoffs happened, to now no raises unless promoted at 5%.

Yep, that’s right, only those RSMers who are getting a promotion will see a 5% bump in pay, firm-wide.

But that’s not all: Bonuses will be paid at 70%. From another tipster:

The firm’s portion is funded 70%. There is still a portion that is based on individual performance/your rating.

When I asked this person what percentage RSM funded of the firm’s portion of employee bonuses last year, they said they couldn’t remember the exact amount but said it was more than 100%. According to a thread last year on Fishbowl about RSM bonuses, someone posted that in 2018 the firm funded its portion at 140% “since we crushed it.” That’s obviously not the case this year.

We were told that compensation calls will begin next month. RSM usually hands out bonuses on July 31.

During these unprecedented, uncertain, and unusual times, it’s not a huge surprise that RSM is being a little stingier with raises and bonuses this year. But know that money you didn’t get this time around could be helping someone who suffered misfortune recently. Team RSM member Davis Love III needs more of that sweet, sweet RSM money to build a new multimillion-dollar home.

Related articles:

Layoff Watch ’20: Here’s What We’ve Been Told About the Job Cuts at RSM US
Furlough Watch ’20: Apparently RSM US Is Putting Many Of Its Recruiters On Ice, Conducted Second Round of Job Cuts

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Layoff Watch ’10: H&R Block Cutting 400 Positions, Closing 400 Locations

Has the risk of violence become too much?

No, it’s actually quite a bit more boring than that – cost savings. The company states that it will decrease its operating expenses $140-$150 million by 2012. CEO Russ Smyth was quoted in the Kansas City Star that “There aren’t as many people who need their taxes done when there are a lot fewer W-2s going out,” referring to the higher unemployment rate in the company’s customer base.

HRB’s headquarters in Kansas City will cut 165 of the 400 jobs lost.


The timing of this announcement is interesting because we’ve heard a few rumors (but virtually no details) about layoffs at RSM McGladrey, an HRB subsidiary, but they aren’t as forthcoming with the press releases and aren’t returning our calls. If you have any details about layoffs at RSM or its on-again off-again affiliate, McGladrey & Pullen, get in touch with us.

Full HRB press release:

KANSAS CITY, Mo. – H&R Block (NYSE:HRB) today announced a broad strategic realignment of its field and corporate support organization. Overall, the company expects these changes to decrease annual operating expenses by $140 – $150 million per year by the end of fiscal year 2012.

Russ Smyth, president and chief executive officer of H&R Block, said, “We operate in a challenging and competitive environment, and to be successful we must find new ways to provide better value to our clients. This requires that we narrow our focus and invest in a few key initiatives that will have the greatest impact on attracting and retaining clients in our retail and digital channels, while eliminating other activities and their related costs.”

Approximately 400 positions are being eliminated throughout the organization as part of the measure. The company also has closed approximately 400 under-performing tax offices out of its network of 11,000 retail tax locations.

“Changes like these are never easy and we appreciate the hard work and loyalty of the affected associates,” Smyth said.

“However, these steps are necessary to improve our business performance and better serve our clients.”

H&R Block expects to incur a pre-tax charge for severance-related costs of approximately $28 million, most of which will be incurred in the fiscal quarter ending July 31, 2010.