Partner Compensation Systems
We have observed and reviewed the many different types of partner compensation systems in place at international, national, regional, mid-size and boutique law firms. Having been focused on this topic for nearly 35 years, we understand the stresses related to credit attribution, the critical need to promote teamwork and collaboration, the importance of appropriately rewarding the "Lieutenants", the challenges associated with rewarding management efforts and the difficulties involved with incentivizing and appropriately compensating succession planning and client transitions.
Because we have worked with the same firms for many years, we have observed both the intended and unintended consequences that may result from changes undertaken. Our advice is practical, grounded in empirical evidence of what matters and is designed to fit your firm's culture and needs, not a graft of other firms' approaches. There are best practices in the industry, but there is no one-size fits all approach to partner compensation. Beyond our experience with direct compensation system assignments, we have also needed to understand potential merger partners' systems thoroughly in the context of a combined firm.