Helping a firm who were not fairly rewarding the differing contributions of the partners.
Introduction:An 8 partner firm had a long history of sharing profits with fixed profit shares for the equity partners. It was recognised that this was no longer working as it did not fairly reward the differing contributions of the partners. It was also felt important to introduce a bonus scheme for fee earners that would effectively motivate them financially to perform at the margins.
What we did:
Advice was provided on ways of measuring performance at both partner and fee earner level and suggestions were made as to how the performance related element could be phased in over time to allow people to improve their performance before the new systems influenced remuneration levels.
Tangible result:
The end result was a profit sharing system where 70% was lockstep and 30% linked to performance.
