McGladrey & Pullen will pick up two more percentage points in the profits of RSM McGladrey, but it also agreed to start paying for more of the expenses as a result of the new operating agreement between the two firms. The results were spelled out this week by C.E. Andrews, president of RSM McGladrey, during the third quarter Webcast of the unit's parent H&R Block, who said most of the terms go into effect on May 1.

Andrews said under the old agreement, "RSM has contributed to business building expensrues, marketing growth and international. They have done solely out of RSM’s 35 percent share." Under the new term, the two parties share in these expenditures proportionately.

A new incentive plan is under construction, which Andrews termed "more long-term wealth-building situations for the partners and managing directions than we had in the past." The expenditure would be about $10 million a year, which he said was not a major incremental increase, and places the prior stock program. The major goal of the incentive program is retaining talent.