Wednesday, July 26th, 2017

Employment Agreements

“Too much agreement kills a chat.” – Eldridge Cleaver

Oh, yes – that touchy topic – employment agreements and partner agreements. CPA firms are famous for having them. Usually, they are part of becoming a manager and for sure when you become a partner. Many firms even have staff accountants sign them.

To be quite honest, after working in public accounting for decades and having signed one myself years ago when I worked in a firm, I have always thought they were not very logical.

My view: If you are a “firm” the clients are clients of the firm and partners are just caretakers of the relationships. Clients really don’t “belong” to anyone – how can you control what a client chooses to do?

If a caretaker leaves the firm and clients also decide to leave the firm, that’s the “firm’s” fault for not strengthening the relationship beyond one particular person.

All of this came to mind because of a recent post by Seth Godin – All deals are handshake deals. I love the final line: “Start with a good agreement. But your future depends on doing agreements with good people.”

  • "My people and I have come to an agreement which satisfied us both. They are to say what they please, and I am to do what I please."
  • Frederick the Great

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