RSM McGladrey, a subsidiary of H&R Block, and McGladrey & P
ullen, have agreed to a split the net income from the RSM operations with the Block unit getting two third and M&P one third of the bottom line. The parties, which renewed their relationship in December, have also agreed to change compensation arrangements, which were not spelled out.
The agreement followed M&P's announcement last spring that it would end the alternative practice relationship the accounting firm had with RSM McGladrey, which held from the first it wanted to maintain the arrangement. After the dispute went to arbitration, the parties announced a Amended and Restated Administrative Services Agreement that governs the relationship.
The parties will establish a Compensation Subcommittee which would change what a Block press release called "certain compensation agreements" relating to the administrative agreement under which RSM McGladrey provides services to M&P. No details were provided. The companies also agreed to work together on development expenditures, acquisitions and branding.
M&P also issued a press release about the announcement, but lacked most of the details provided by Block. The firm has not provided tpublic statements about the agreement and last year, after posting press releases, one about the termination notice and the other about the renewed agreement, and then removed both and has not reposted them.
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