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KYLE AHERN, from page 1
cases, advancement is most commonly tied to business development skills, staff management, or licensure. These trends are indicative of the uneven terrain when it comes to the balance between authority, accountability, and personal risk in firm leadership. Compensation for firm leaders is also multi-layered, blending stability with performance-driven rewards. Base salaries remain the foundation, with the median salary experiencing steady growth since 2020 after a brief plateau. Beyond salary, just under 70 percent of firms distributed bonuses last year to reflect individual and firm-wide success. Another dimension comes from shareholder distributions, which were issued by more than 60 percent of firms. These trends reveal a structure where leaders are rewarded not only for their roles, but also for the performance and profitability of their firms. The combination of salary, bonuses, and distributions demonstrates how closely leadership pay is tied to both firm outcomes and ownership structure. Beyond salaries, bonuses, and distributions, firm leaders receive a range of benefits that emphasize practicality and accessibility. A majority of firm leaders receive company-paid cell phones or mobile devices. This underscores the expectation of constant connectivity. Another common benefit is transportation support, with just under a quarter of firm leaders receiving auto allowances. Networking remains a common part of the package as well, with some firms providing club memberships to support client engagement. Most notably, perhaps, is how common it is for firms to prepare personal taxes for principals. Just under half of firms report providing this benefit to save both time and potential headaches. These perks and benefits reflect a focus on efficiency and professional presence rather than extravagance. Retirement benefits for firm leaders continue to evolve. Traditional pension plans, once a staple, are not uncommon compared to things like the 401(k) plan. This reflects a broader shift across the industry from defined benefit plans to defined contribution plans. This in turn places a greater responsibility on the individual to manage their long-term savings. For principals and partners, retirement security is increasingly tied to both personal contributions and firm performance rather than guaranteed payouts. When taken together, these trends paint a picture of AEC leadership that is both demanding and rewarding. Governance structures are becoming more formal, particularly in mid- to large- sized firms. Compensation packages are diverse, balancing salary with bonuses and ownership distributions that reflect firm performance. Perks are designed to support connectivity, mobility, and efficiency, while retirement planning is aligned with modern contribution models. Principals and partners carry real responsibility – and often personal risk – but also share directly with the success of the firm. Understanding these trends is critical for current and aspiring firm leaders. Benchmarking against peers provides valuable context for decisions about governance, compensation, and benefits. Zweig Group’s 2025 Principals, Partners, and Owners Report offers the most comprehensive data available on these topics, equipping leaders with the insights they need to strengthen their organizations and plan for the future. From salaries to shareholder distributions, from voting rights to retirement plans, this report is the definitive resource for AEC firm leadership. See the full report here! Kyle Ahern is manager of Data and Analytics at Zweig Group. Contact him at kahern@ zweiggroup.com.
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THE ZWEIG LETTER DECEMBER 1, 2025, ISSUE 1611
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