The Challenge
The law firm's existing equity partner compensation system was outdated and subjective, failing to accurately reflect individual contributions and providing little incentive for profitability. This led to dissatisfaction among partners and a misalignment between personal efforts and firm success.
The Solution
PerformLaw's equity partner compensation redesign service was selected to address these challenges. The firm discovered PerformLaw through industry recommendations and chose their service due to their proven expertise in creating fair and motivating compensation systems. The firm evaluated other options but determined PerformLaw's tailored approach and deep industry knowledge were unmatched. The firm initiated the transition with a three-year plan, including a one-year parallel system run to ensure a smooth shift.
The Results
After implementing PerformLaw’s redesigned compensation system, the firm experienced significant improvements. Over the three-year transition period, partners gained a clearer understanding of the compensation structure, felt more fairly rewarded, and saw a direct correlation between their contributions and the firm’s profitability. The one-year parallel system run ensured a seamless transition, minimizing disruptions. Overall, the firm achieved a more equitable and motivating compensation model, aligning individual efforts with overall success.
