Art of Accounting: Partner compensation

As this unusual year comes to an end, many firms will be divvying up profits and assigning new partner salary or draw amounts for 2021. Where there are compensation agreements, this is primarily handled contractually, but there is usually some wiggle room for discretionary or merit adjustments. In larger firms this is usually done by a committee and in less larger firms by the partners together or by the majority owner for smaller firms. READ MORE