$839,000. That's what equity partners in the top 400 public accounting firms make on average now (excluding the Big Four).
Want to know the hidden cost of that salary?
Working more hours than anyone else in the firm - and being less happy for it.
On the Earmark Podcast, I spoke with Yuri Kapilovich, CPA about this brutal reality.
Equity partners work an average of 50+ hours per week, and their job satisfaction score is just 6.7 out of 10 - no better than managers making a fraction of their income.
We're telling young accountants to sacrifice their prime years chasing a partnership dream that doesn't even make people happy.
When I was grinding away as a manager in public accounting, I watched the partners above me and noticed something disturbing: their lifestyles were WORSE than mine. More client demands, more internal politics, more hours... and for what? A bigger paycheck they barely had time to spend?
The World Health Organization says working more than 54 hours a week significantly increases your risk of stroke and heart disease. Yet, in public accounting, we treat these dangerous hours as a badge of honor.
Meanwhile, progressive firm owners like Yuri are proving there's another way. He's built a thriving practice working reasonable hours and taking summers to actually enjoy life. And his firm is still profitable AND his team is happy.
But most firms are stuck in the dark ages, wondering why they can't attract or retain talent while:
Demanding 55+ hour weeks
Treating burnout as a rite of passage
Using partnership as a carrot to keep people grinding
Measuring success by billable hours
Is this really the best we can do as a profession? When are we going to admit that this model is broken?
Here's what I think: The firms that figure out how to deliver quality work without destroying people's lives will win the talent war. The rest will keep wondering why they can't find good people.
For more on this topic, listen to Episode 82 of the Earmark Podcast.
