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Compensation Watch ’12: Public Accounting Partners

Posted on by Caleb Newquist

The AICPA asked around and it turns out that most CPA firms across the country have a seen an increase in fees in the last couple years. That's good! Consequently, partners are doing a little better than they were just two years ago. That's good! So good, in fact, that everyone at the adult table is back to 2008 numbers: 

Average partner compensation jumped to $188,500 in 2012, an increase of 10 percent over two years ago, and now stands at virtually the same level as 2008, when it was $188,572. The 2008 [Management of an Accounting Practice] survey was conducted before the steep slide in the U.S. economy, so it represents a good guidepost of recovery.  

Not only is this pleasant news for the new partners, it's also music to anyone's ears that fears the senior manager parking lot because it won't be long before some of the older partners start moving on:

While overall client fees have increased for many firms, per-partner fees dropped in the latest survey. [AICPA VP Mark] Koziel said this probably reflects the addition of new partners, particularly at larger firms, which are planning ahead for the pending retirement of Baby Boom-generation leaders. This benchmarking category should improve as an expected wave of partners steps down over the next decade.

Or simply shipping out.

CPA Firms See Increase in Fee Revenue [AT]

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Apparently a Few People at PwC Are Feeling Shortchanged

The PricewaterhouseCoopers compensation post is still a hot thread, as the majority of news was about double-digit raises and bonuses have been reported from many although at least one commenter was skeptical that all the news was good in the PwC world:

“[P]robably the people most willing to share are the ones who got the most $.”


That comment was in response to someone who assumed PwC was throwing around “1” ratings (the firm’s highest) like boomies at a Phish show. Of course, not everyone can be so lucky and apparently there are a couple of terms being thrown around by the less fortunate.

Late last week a source close to PwC dropped us the following:

“Fonus”– noun; the much-diminished bonus Big 4 firms give to borderline staff they can’t afford to pay properly, but don’t want to quit.

Not to be confused with the ‘nonus,’ which is no bonus at all.

Apparently these terms have emerged this week as fonuses started appearing in people’s paychecks.

So not to worry “as expected” staff that can’t afford to quit your jobs! If you ended up with the 6%/0% instead of the 14%/10% or whatever, whathaveyou, you’re not alone! Plus, there are some fun terms you can throw around to help you bitch about it. Continue to discuss and keep us updated with any other fallout from the discussions – verbal creativeness or otherwise.

Comp Watch ’11: Bellyaching By McGladrey Employees Seems to Have Paid Off

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Residents of the blue and green arches got news of their raises (or lack thereof) back in July and the results were mixed. Some we’re pretty happy while others could barely afford to celebrate with their own punch and cake party.

One way or another, the sound of the incessant bitching reached someone of importance in the Great Lakes Region because a tipster passed along the following:

Intended Audience: External Client Service Associates through Directors

You said it – and we listened. During this past performance review our leaders delivered what they thought was a ‘good news’ message about your October 1st salary increase. “The market is flat, business is below plan, your performance is great, and this is really a good increase – all things considered.” And yet, many of you still felt that your hard work and long hours and extra effort was not being recognized.

Now it’s time for us to step up and do what is right – for you! YES – You’re important to us and important to our success. You work hard all year and pull out all of the stops during the ‘busy seasons.’ Interesting phrase, “busy seasons” – we are always busy, and then there are those times when we feel we have delivered more than we even thought we could deliver. To recognize this and thank you for your hard work and commitment to our clients, effective October 16th [Yes, this was three days ago], you will be receiving a base salary increase! These raises are in ADDITION to any October 1st increases which were communicated during the most recent annual review cycle and will show up in your October 31st paycheck. The increases were determined by level and applied consistently across lines of business and geography. Anyone hired on or after May 1, 2011 are at market so no salary adjustment will be made.

There was a great deal of thought that went into the decisions that were made to continue to move salaries in the right direction. We looked at the market and considered how quickly it has moved, we revisited our competitors’ compensation data, compared this to what you are earning and what you could earn in comparable jobs at other accounting firms, and then made a decision to make adjustments so it is even more competitive than before.

You deserve this – and we’re glad you shared your thoughts with us so we could make some changes.

The Great Lakes Management Team

Well, this sets a very dangerous precedent, doesn’t it? Any year too many Mickey G’s employees find themselves slightly dissatisfied with their raises, they’ll simply piss and moan until someone at the adult table gets annoyed enough?

The questions now are 1) What the second raise will be? 2) Will that will satisfy the masses? 3) Would handing out autographed posters of McGladrey-sponsored golfers have solved this whole problem?

Your reactions are welcome below.

*Dustin Bradford.

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