“I think we are building off the success that all three legacy designations have had internationally”
Arthur Andersen and head of financial analysts at BMO, he clearly loves the thrill of his job. The 2015 CPA Profession Compensation Study depicts a tri-
ple-legacy accounting profession swimming confidently with the sharks in 2014. Mean compensation for traditional and nontraditional roles rose 7% to $151,000 in 2014 from 2012. The median increase came in at 3%. Although the profession is not experiencing double-digit percentage increases in salaries, its members enjoy excellent compensation and have taken on impressive roles in practice and a range of industry sectors. Li has no complaints about his salary or benefits (and cer-
tainly not those that include cuddling year-old pandas). He will not divulge his monetary compensation, but the 2015 study reveals that members working abroad earn far more than home-based CPAs with similar years of experience. US and overseas mean compensation was reported at $284,000; for Hong Kong, it was $331,000. As explanation for this disparity, John Tabone, principal, member value and research services at CPA Canada, says that those who take or are offered work abroad provide a unique set of skills. “I think we’re building off the success that all three legacy designations have had internationally,” he explains. “The fact that we’ve pulled them all together — even though it’s a new brand — [lets] people know it’s going to build upon the existing brands and become something even better.” “Ah, money,” Li laughs. “My view is that, for one thing, it
certainly depends on supply and demand. There’s a need for more professionals, so they will pay more in Dubai or Hong Kong.” As chair of CPA Canada’s Hong Kong chapter, he meets a good number of the profession’s new arrivals. And he likes
Owner Compensation ($000s) Measure
Count Mean
Median
Percentile 25 Percentile 75
2014 2,031 $211 $160 $96
$267
what he sees. “These people also may be posted here because they are considered premium candidates. There are opportu- nities for Canadian-born CPAs here. Hong Kong is a relatively open economy, so if you qualify, if you have value, you go higher.” The lure of overseas big bucks holds no sway for Michael Sedigh. Nor does a move into a nontraditional position. Residing in Markham, Ont., he chose to earn his recently acquired credits toward his CPA at nearby York University and then to partner with his CPA mother. The two have been making steady progress in building an accounting practice at offices in downtown Toronto and in Richmond Hill, Ont. “At this stage, it’s a family business,” Sedigh says. “But I’m looking to evolve and bring on more people, people who can sit down with the client and establish a social rapport — that friendly face accounting firm where clients can actually learn about their finances.” He believes that these close interactions lay the foundation for lasting success and greater compensation. “Satisfaction translates into value,” he says. “The pleasure of helping people who took that risk of developing their own business — just like myself — well, it’s hard to put a number to that.” Looking through the study, Sedigh’s expectations for the
future rise as he reviews the salaries of practice owners. Owners of accounting firms reported $211,000 in mean com- pensation and within this category, sole practitioners earned $136,000, while partners reported $276,000. “I want the mon- etary part as well,” Sedigh says, “but when you feel you’ve helped add value to clients’ business and work, it’s quite rewarding.”
Owner of an accounting firm (sole and partner)
2012 1,413 $185 $125 $78
$203
2014 946
$136 $108 $70
$165
Sole
2012 709
$133 $100 $65
$153
2014 1,085 $276 $232 $150 $333
Partner
2012 704
$248 $170 $117 $267
Owner of
another business 2014 677
$316 $160 $100 $286
2012 474
$301 $164 $112 $250
MARCH 2016 | CPA MAGAZINE | 47
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