Apr 19, 2023
Incentivize the behaviors you want. That was the theory behind GRF CPAs & Advisors’ decision to change its partner compensation model several years ago. Firm leaders knew that if they wanted their partners to operate as a cohesive team, they needed to stop paying partners in ways that drove individualistic behaviors.
More than five years later, GRF President and Managing Partner Jackie Cardello, CPA says that while the process was a lot of work, the results “absolutely” have been well worth it.
What did GRF change and how have the firm’s fortunes improved? Find out from Cardello and GFR partner Elinor Litwack, CPA, in this episode of the Small Firm Philosophy podcast, produced in partnership with the Journal of Accountancy podcast.
Things you will learn in this podcast
- The limitations of formulaic, eat-what-you-kill compensation models.
- Other goals that can be added to the model other than financial metrics
- The advantages to bringing in a third party to help with the process
- What behaviors the new compensation model incentivized
- How a compensation committee works
- What firms should know before they start on this path