(This piece was first published in the Association for Accounting Marketing's 'AAM Minute' on September 24, 2020: https://bit.ly/335Jvu0)
The compensation structures for the Business Development Executive (BDE) in an accounting firm is widely varied. For context, a BDE is typically a senior and experienced client-facing professional, tasked with growing revenue at their firms.
The compensation structure variations are, generally speaking, most easily defined by looking at the relative firm size. Alongside these generalizations, the top influencing factors can also be analyzed and understood.
The following table outlines a formula for determining a compensation structure for a BDE based on three things: experience in conducting executive searches, experience in negotiating compensation structures, and anecdotal evidence.
See this table to help determine compensation structure.
When determining compensation, it is important to remember that there are exceptions to every rule, with some individuals having vastly different experiences. These exceptions should be balanced against the generalizations and best practices when creating compensation structures for Business Development Executives.
Kate Harry Shipham is the Principal of KHS People LLC, an executive search firm for BD and marketing people in professional services firms. Kate has done search and recruiting for nine years and prior to that was an attorney.