Why Aren’t Big 4 Firms Aggressively Marketing Their CPA Exam Policies?
While the firms are busy trampling each other to recruit top talent with a salary/benefit/work-life balance pissing contest, many of them are missing one important component to their seduction strategy: CPA exam incentives. We already know some firms pay for materials, give you time off to study, and offer cash incentives for passing the exam […]
Promotion and Bonus Watch ’12: Here’s a Confidential Guide for PwC’s Performance Review Process
Early last week we kicked off the compensation season 2012 discussion, thanks to the anxiety that is circling among the rank and file of accounting firms. Along with concerns over cold hard cash, some of you are probably curious about promotions. Luckily, someone was kind enough to leak us PwC's "FY12 ARC [Annual Review Committee] […]
(UPDATE) McGladrey Ditching Partial CPA Requirement for Promotion to Senior Associate
Similar to the Purple Rose of Chicago, our tipster informs us that Mickey G's needs seniors/supervisors badly: CPA policy In 2010 a change was made to the CPA policy requiring the completion of two parts of the CPA exam before an associate could be promoted to senior associate. Going forward, we have decided to eliminate […]
Grant Thornton’s New CPA Policy: Bonuses and Requirement for Promotion
Grant Thornton rolled out some policy updates today related to obtaining a CPA (full email after the jump), including some impressive bonuses for its newest employees (hired after April 15, 2010). The largest available is $10k if you happen to be of the Elijah Watts types and “are among the top 10 candidates earning the highest cumulative scores on the four sections of the CPA Exam in the country.”
Other bonuses include:
• $5k for passing all four sections within one year of full-time hire.
• $3k if you pass within 18 months of full-time hire.
• $7.5k for those in the top ten in their state but not good enough for national recognition.
The firm is also paying a small bonus ($1k) for current employees who have epicly failed so far but��������������������exam between August 1, 2010 and July 31, 2011.
While most people easily get hung up on the money aspect of things, the bigger change is the requirement for new employees (again, those hired after April 15, 2010) to have passed all four sections of the CPA prior to being eligible for promotion to Senior Associate. That goes for both audit and tax employees.
We covered CPA exam policies in a couple of posts earlier this year and the only other firm that has this requirement is PwC for the audit practice. The tax practice requires a CPA for promotion to manager.
So some pretty interesting developments at GT and it seems to be a fair transition – from a timing standpoint anyway – as those hired in the last six months can hardly find their ass with both hands, let alone be ready for a promotion to SA. But again, this is major policy change going forward and GT is, at the very least, making the case that they will be holding all of their associates to a higher threshold of performance than firms that don’t have such requirements.
Sound off your support or displeasure in the comments on the bonuses or promotion requirements below. And for the non-GTers out there, what do you think of your firm’s policy? Does it need updated to keep the pace with GT’s move? Are changes in the works? Keep us updated by emailing us at [email protected].
Important information regarding CPA licensure
At Grant Thornton, we are a dynamic global organization that is committed to making a difference to our colleagues, clients, the profession and our communities. As part of our commitment to providing our clients with distinctive service and the highest quality, I am pleased to announce two important changes effective immediately.
Introducing the CPA Pass Bonus
It is our goal to continue to attract intellectually curious, talented individuals to our firm and to encourage them to pass the CPA exam and earn their license as soon as possible. As such, I am delighted to announce that Grant Thornton will now offer a CPA Pass Bonus.
Grant Thornton will pay professionals who joined the firm as entry-level associates from campus on or after April 15, 2010
· $5,000 – For passing all four parts of the exam prior to or within one year of their full-time date of hire
· $3,000 – For passing all four parts of the exam within 18 months of their full-time date of hire
· $10,000 – For those who are among the top 10 candidates earning the highest cumulative scores on the four sections of the CPA Exam in the country
· $7,500 – For those who are recognized as earning the highest cumulative scores on their initial sitting for the four sections of the CPA Exam within their state and were not national winners
To recognize a transition within the spirit of the new policy, Grant Thornton will pay a one- time “catch up” to experienced associates through senior associates
· $1,000 – For passing all four parts of the exam, if they pass during the August 1, 2010 and July 31, 2011 time period only
CPA requirement for promotion to senior associate
In addition to paying a bonus to those passing the CPA exam, the firm has made the decision to require audit and tax employees to have passed all four parts of the CPA exam in order to be promoted to senior associate.
For employees hired on or after April 15, 2010
· This new promotion policy is effective immediately.
For employees hired before April 15, 2010 or as experienced associates and senior associates:
· Employees who have not yet passed the CPA exam will be “grandfathered” under our current policy. In that regard, we encourage all individuals currently at the associate 2 level or above to pass the CPA exam within the next 2 years. However, they must be a licensed CPA prior to being promoted to manager.
For additional information, please see the CPA Pass Bonus Policy linked here.
If you have any questions about either of these changes, please contact your practice leader or local HR professional.