Partners: can you give some examples of offers (written or verbal) that you got since making partner? (I.e., role, total comp, etc.). Just wondering what a company would pay for someone at that level.

I have received multiple offers to run the ITS departments of regional firms. None of them paid what I make now and don’t have my pension. I haven been offered two VP of Tax position; one for a fortune 20 company. That paid big money plus stock. Comp wise that was comparable to what i make now but was a big job and would have less flexibility and was an hour commute each way from NYC. My wife works in NYC and my kids like their schools so i am not looking to move. The other was a mid size company and while it would have been an easier job than I have now it would have paid 2/3rds of what I made then and no pension. Then I have gotten more offers then you can imagine for manager level positions that pay what I made as a manager. Those come through LinkedIn and made me laugh. Those recruiters have no idea what they are doing.

So, a couple of things - I am obviously in tax. So many corporate roles for us are not C Suite so the money isn’t as good as what I make now - which is over $1M (I am in my 13th year as a partner). I live in NYC so need decent coin to live well. I will have a pension for as long as my wife and I live for about $385K once I retire. I have real flexibility in my schedule. I am well established in EY and know my job Those items are really hard to beat and why I will happily retire here in 12 years. At that point I may consider one of those positions- although not the Fortune 20 comps y. I don’t think I will want that level of stress and responsibility at that time in my life

EY2 sums it up nicely.

The facts may be specific to him, but the same analysis and types of options apply to most partners. Rarely an opportunity that is better than being a partner in PA.

On the funnier side, I have often been recruited for positions as an audit senior and controller at comp levels ranging from 75k-125k. And yes, this is well into my years as a partner. Just another example that many recruiters are superficial and dont do their research. Even funnier, when I shared with a recruiter by phone that I wasnt interested in the audit senior position because it would be a demotion, he then asked me if I had any referrals for him (what? As in my team?) Go figure.....

PwC2 - my pleasure. I am of the opinion that this shouldn’t be a secret. I is a really good pension EY offers (and possibly the other B4 as well) and you all should know the benefits of being a partner so you can make educated decisions about your careers

EY2....you're are giving great feedback. Nice to see another transparent and insightful partner on here. You fully vest in a few years. Hang tight, I'll be recruiting you 😉

PwC2 - I believe a first year partner in ITS makes around 350K+ for their first year. For me this was 13 years ago - my base was $250k and my Year end distribution that year was. $130K. They have changed it over the years (and it is not lock step) but I believe they have used the base and made the year end distribution in the first year smaller. EY works to get partners in years 1-5 up to the average quickly so Year end distributions can be meaningful and in good years they are meaningful for everyone. Now I know that I can be perceived as an a$$ for saying a $30-50K year end distribution isn’t meaningful and a $130K one is. I am well aware that $50K is more than many families make in a year. I don’t take what I have for granted and am very active in giving back. But that generally is what the pay is. It does vary if you are a high performing partner compared to a partner that regularly meets expectations

M&M1

Unless someone is a national office technical partner or some other unique position, everyone must contribute to growth of the practice. This includes expanding current client relationships, cross selling to other service lines, not losing clients, and bringing in new clients. This is tough....certainly the new work part. The keep your clients, expand and cross sell is the easier part.

The amounts and expectations vary by partner, by team and by firm.

It was definitely tougher as a new partner. I had the good fortune to work with partners who trained me and exposed me to business development starting in my senior years. By the time I made partner there was nothing new about it. I started bringing in new work as a senior manager. Greatest feeling!

I encourage everyone to get out from behind your desk, spend time with your clients understanding their business and their goals, and meeting new people in the community (industry groups, lawyers, investment bankers, PE folks, etc).

This is all more fun that cranking out compliance work.

PWC2 - my buy in to the partnership was $200k and the firm lends you the money if you don’t have it. I don’t know if anyone who just paid it but you could. The loan gets paid back over 5 years at a pretty low interest rate and is paid out of your year end distributions. However you are required to keep capital in the partnership that is equal to 30% (I believe) of your current draw. So each year as my draw increases the amount I am required to keep in capital with the firm increases. Yes, that capital is returned to me when I retire. So if I am marking 1.1M , I would have $363K in Capital with the firm which I get upon retirement or leaving the firm....it is my money I have given the firm to use. I earn interest on it. My pension, as you correctly note, it separate and above that amount. If you are asking what the average capital amount is that people have in the firm, I would need to look at what the average Partner makes now and take 1/3 of that.

M&M1 - great question. When you make partner you should have a book of some self developed clients/work and then given some clients (ie you were the Sr Mgr and will now become the partner on). In my group that book should be 2-

$2-4M. You also have to have a track record of being able to sell to clients. The reality is you need to grow this book to say $6-8M and you’ll be fine - an average partner - but fine. To excel you need to keep growing your book. For me I try and increase my book by $1M each year I am a partner. So this year my book should be $14M+. It is personal challenge I set for myself. But I have a Sr Manager who I work closely with who should make partner this year and he will inherit a couple of my clients and reduce that number and as partner it is my job to regrow it and find the next people I want to help make partner, etc.

OP - Also a good question. I don’t know why this is a secret. I guess you have to find PPEDDs you know and trust and ask them. If they know you they should answer your questions honestly .

Ha Partner 1 - we are tag teaming tonight. I am going to sleep soon though! Have a good night. See you on FB tomorrow!

I would like to thank the partners who contributed with honesty to this thread. It is great to know how it could be like down the road.

Partnership is lucrative! 😉

That's correct PwC2

Most firms require capital contributions. There is an initial contribution when you become a partner and then ongoing contributions throughout your career. Some firms have caps, other do not. Some firms pay interest annually on capital and others do not. Upon retirement, capital is paid back. Some firms pay it back all at once and others pay it back over time.

This is all separate and different than retirement/pension benefits.

Hope that helps clarify.

EY 2 - Thank you for the very comprehensive answer.

Partner 1 - right back at you I fully vest in 1 Year, 9 months, 3 weeks and 4 days :) For the non-partners - that is something partners track! Good night!

Thanks, partners! I wish I worked for you guys. Truly appreciate the honest info

Hilarious! @partner1

Thank you all for the great info! Question, why can’t some of these comp discussions happen openly in the firm? Why is it so secretive? Or do all senior managers know this info but only get the direct info once they get close to partner level?

$385k per year after you retire?

AA1 - yes and for some partners senior to me the old pension was even more lucrative. The pension I am in at EY (they changed it a couple years ago and it is a bit less lucrative but still very good) is they take your 3 highest grossing years out of the 5 years before you retire, and then cap the amounts at $1.1M per year if you make more than that (and I do) and pay effectively a 1/3 of that for life. The old pension wasn’t capped at $1.1M and was crazy lucrative. I don’t know how the new pension differs as it doesn’t apply to me, but I know it is still good. It is a very large carrot for the partners. I know each of the B4 have pensions, or at least believe they do, but would need others from the other firms to describe them.

PwC4 - Not at EY. At least not directly Honestly it is an honor to represent someone up for partner. What I mean by not directly is - within the partnership you have partners who are capable of making others partners and those that can’t or don’t. What I mean by that is to be a recommending partner you need to have some clout within the firm, you need to regularly be working with our people and new people at that that you are developing and grooming to be partner. Further, you are regularly giving up part of your book to these new partners. So you need to capable of regrowing your book.

Look around your group - there are partners who are regularly recommending partners and those that will never serve in that role. Think about who you want to work for then if you want to make partner.

If you serve in that role, chances are you are making more than the partners who don’t have the capability to serve in that role. So indirectly they make more. However at least at EY we get no monetary bonus for making someone partner. We fight for them to make partner because they deserve it and have earned it.

Then the satisfaction of seeing the smile on their face and knowing that they just achieved something they have worked so hard for is remuneration enough for me...plus those young partners will then pay for my pension :)