That is the average annual compensation of equity partners in the top 100 accounting firms (excluding the Big 4) in the U.S., according to INSIDE Public Accounting’s latest practice management survey.
That is up 3.3% from the average annual equity partner compensation of $660,000 at firms ranked No. 5 to No. 100 last year.
Other highlights from IPA’s most recent practice management survey of the top 100 firms not named Deloitte, PwC, EY, and KPMG include:
- Organic growth (excluding mergers) grew to 7.4%, up from 6.7% in 2019.
- Nearly 110 acquisitions (both traditional CPA firms as well as other non-CPA firms) were reported, pushing the overall growth rate to 9.8%, down slightly from 9.9% in 2019.
- Organic growth in net income was down this year to 7.7%, a decrease from 9.9% in 2019.
- Average equity partner billing rates are now at $469 per hour for the IPA top 100.
- Professional staff turnover (CPAs and other client-serving staff) averaged 16.0% for the IPA top 100, with one in six firms averaging more than 20% professional staff turnover.
- Six female managing partners are at the helm of IPA top 100 firms this year.
- One out of every 11 equity partners/owners in a CPA firm are not licensed CPAs.