I looking into a DEP (Direct Equity Partner ) Oppty. Even though I have a high level overview , it’s the first time im@moving from a non equity Partner org to a Equity Partner role…I understand each firm also is different but is there a overview of how Equity Partner comp works?

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I’m quite certain it varies widely. I asked an EY partner once decades ago. His take was that the money was put in three piles. $1 for the CEO, $1 to be shared by the board members, $1 to be shared by the other partners.

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Totally depends on the firm. The Big 4 are generally a lot more “fixed” comp with increases each year based on how the firm and partner does. There are other firms like A&M which are the other end of the spectrum where a vast majority of the comp is variable based on your revenue/profit. And the McBs are somewhere between, not fixed but not as much variability as the A&Ms. As it relates to the equity component, there is generally more opportunity to achieve a lot more equity at an A&M type of firm versus the larger Big 4/McBs. And now many/most of firms are being acquired by PE. They are all touting opportunities for huge equity comp, but it obviously remains to be seen. Not every PE-backed firm will hit it big. At some point, there will be the “winners” and the “non-winners”

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Thanks! Equity units are granted like RSU? Or do I need to invest/buy? Are these granted based on performance (am assuming mostly gross profit? Or is it revenue or a composite across booking, revenue, gross margin and utilization )…and is that separate from the profit sharing distribution ? I understand it’s differs across the firms but wanted to get a sense of how much freedom I have in managing p&L… as I’ve have been successful in growing across all metrics but not had the free one to reinvest in my practice

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Thanks. I meant how does comp work..Traditional Base+Various bonus+RSU on w2 vs the Equity Partner model.

It really depends, which firm?

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