If there's one thing all accountants can get excited about, it's being granted the privilege of donning denim at the office. Time was, no accountant in their right mind would show up to the office in jeans for risk of public shaming. These days, things are less strict although there was a near mutiny in […]
We were gently reminded that Baker Tilly compensation discussions happened around this time last year, so it behooves all of us to start the 2015 version today. It should be mentioned that in last year's thread the first comment warned against participating in the merrymaking: We were specifically warned by management not to share results […]
Well, it's official, ParenteBeard is no more. The merger was effective October 1, and Baker Tilly has wasted no time slapping their logo all over Internet real estate that once belonged to ParenteBeard. We haven't heard any further grumblings of layoffs or general discontent, but if you know something we don't, you know what to […]
Yes, Baker Tilly. We believe in equal opportunity kvetching when it comes to public accounting employees and their pay. We received this tip in the tip box late yesterday: Ratings and promotions have been announced for Baker Tilly, at least in the Greater Wisconsin region. Compensation talks shouldn't be far behind. Now, because ParenteBeard is […]
We were tipped to this about two weeks ago but unfortunately our tipster failed to include an email address or any details that we could confirm (THANKS A LOT, GUY). Now, we could have just run it but that would go against our journalistic sensibilities, so we sat on it until we could get to […]
From Accountancy Age: Top Ten accountancy firm Baker Tilly has been told to review its audit methodology in light of continuing deficiencies in the quality of its audit work discovered as part of an inspection by the profession's watchdog. Baker Tilly was also criticised by the FRC for its reluctance to accept recommendations made by […]
Man, and I thought Washington was a tough town to break into: Tim Christen, chairman and CEO of accounting firm Baker Tilly Virchow Krause LLP, moved the company's U.S. headquarters to Chicago from Madison, Wis., five years ago, but when he set out to join one of the city's elite civic clubs, he was rejected. […]
Today in obscure firm merger news, Baker Tilly and New York-based Holtz Rubenstein Reminick have professed their love for each other and are entering into a holy union on June 1st. "We've been looking for the right merger partner in New York and we found that partner in Holtz Rubenstein Reminick. They have a […]
This slipped by us last week, but after noting last Thursday morning that a lawsuit against Baker Tilly for $327 million was nearing its end, we found this story from late on Thursday reporting that BT had lost the suit to Aqua Finance. Aqua Finance accused its former accounting and advising firm of negligence and breach […]
Today marks the day that you're pulling out brackets again that just serves as a reminder of how horrible you are at picking winners. Accordingly, we'll dive right into round two of Going Concern March Madness 2012: The Coolest Accounting Firm. Again this year we saw a bunch of upsets in round one with all […]
This one’s a stumper.
Accountancy Age reports that 14 Baker Tilly partners are giving up their equity stakes to go on salary including “international CEO Geoffrey Barnes, head of IT advisory Richard Spooner, and six partners from the London office.” A spokeswoman told AA that this is simply a change in “remuneration” and the fourteen individuals would remain partners and there “would be no change to client services.”
Riddle me this partners out there: why would a person with an equity stake go back to being a senior manager (i.e. in terms of the compensation structure)? Something doesn’t compute there. Since we’re dealing with the international CEO and head IT advisory, maybe there’s some kind of political or solidarity motive here but the Accountancy Age report is skimpy and its editor Gavin Hinks admits that there isn’t much to go on and gets to speculating:
The big question people are asking is what does it mean? Or does it mean anything at all? There are a number of reasons a partner’s status might change. They may simply no longer want the risk of being partner. The firm may believe profits are too diluted and want fewer partners.
I personally don’t buy the first motive. If they were sick of the risk, why not just leave the firm? There are plenty of jobs out there with better compensation packages. Diluted profits is a little more plausible but the international CEO and head of IT advisory? Why would they opt out? Since the partners in question made this decision themselves, it’s unlikely that this was a punitive measure but perhaps BT had a little bit of an internal email scandal, they were given a multiple choice form of punishment and this was the least severe option? I’ve really got nothing better at this point. People with theories that are slightly above the crackpot level are invited to share.