Performlaw Blogs

Compensating law firm managing partners?

Posted by: PerformLaw on June 28

Should managing partners be compensated for their service?  Answering this question seems easy enough. In reality, though,  the answer is much more complex. Even more difficult is determining how to fairly compensate deserving managing partners. A related challenge involves whether management committee members should be compensated for their contributions.

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Client Origination Credit Essentials

Posted by: Brian Kennel on June 5

Most small and mid-sized firms must continue to compete for new business on a constant basis.  Having polices that are favorable to the development of business generation skills places a law firm in prime place for growth. 

 

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Determining Attorney Bonuses: Subjective and Objective Considerations

Posted by: Brian Kennel on March 21

Most law firms use a bonus system to motivate and retain good attorneys.  With their own unique values and behaviors they wish to reward,  law firms use various subjective and objective methods to determine bonus amounts.   While there is no magic formula for creating the perfect bonus plan, the law firms that find the most success are ones that support a  compensation process that is transparent and that view compensation as an ever-evolving system that progresses and flexes with the times.  

 

 

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Setting and Adjusting Base Salaries

Posted by: Brian Kennel on February 15

Defining a process for setting and adjusting base salaries is difficult for most law firms.  Law firms typically make salary decisions based on the following factors: 

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A Structured Approach to Fairly Compensating and Promoting Lawyers

Posted by: Brian Kennel on January 5

 

Fairly compensating and promoting nonowner lawyers (associates, income partners, counsel, of counsel, etc.) is best accomplished using a structured process. The process should be transparent and include:

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Compensating for Law Firm Profitability

Posted by: Brian Kennel on January 31

 

Compensating based on profitability ensures that a firm’s bonuses are tied to created profits. While more difficult to accomplish, the results are often better.  Looking at profitability information requires more transparency and information sharing of the firm’s cost structure.  This makes some partners uncomfortable. However, our experience has shown that when partners (including the most resistant ones) have a working knowledge of the impact of various elements on profitability,  a high-performance culture is often the end result. 

 


 

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