Articles
- Firms' Billing Rates Inched Up During 2009
by Karen SloanIt's hard to believe but, even during the worst economic recession in over 70 years, US law firms managed to increase their billing rates in 2009. The average was 2.5% according to a recent survey of the nation's largest law firms conducted by The National Law Journal. That increase compares to a 7.7% rate climb in 2007 and 4.3% in 2008. The survey also indicates that a larger percentage of revenue for most firms was generated from alternative billing arrangements.
- Associate Pay Cuts Here to Stay, Say Firms and Analysts
by Julie TriedmanAccording to this article that originally appeard on AmericanLawyer.com in December, a growing number of law managing partners and consultants say that steep cuts in associate compensation are here to stay. "We do not see any movement to reinstate pre-recession pay levels," says Altman Weil consultant Jim Cotterman. Starting salaries for first-year associates reached a staggering $160,000 a year at blue-chip firms in New York, Los Angeles and Washington.
- Trends in Partner Compensation
by Jane SenderCompensation is a hot-button topic for almost every managing partner. It is also a critical driver behind the lateral movement of equity partners. This article by placement specialist Jane Sender provides an overview of recent trends in law firm compensation systems, including open vs. closed, and formula vs. subjective systems.
- Setting Associate Compensation Sensibly: A Methodology
by John IezziIn this article, long-time consultant John Iezzi sets forth an interesting formula-driven, performance-based compensation scheme for associate attorneys. However, we think it's also important to include subjective factors, as well, to reward exceptional work product, positive attitude, firm citizenship, marketing and other non-billable, hard-to-quantify contributions.
- It's Bonus Time! Rewarding Top Performers with Innovative Incentive Programs
by Steven T. TaylorCompensation is always a touchy subject...especially in an off year like this one. This article features case studies of what a handful of innovative firms are doing to reward exceptional - often non-billable - contributions to firm goals and objectives.
- Do Law Firm Compensation Systems Drive Profitability?
by Edge InternationalWhile there is certainly no such thing as the "right" compensation system, here's an interesting article from our friends at Edge Group concluding that formula-driven compensation systems hurt firm profitability.
- Rethinking Partner Compensation Criteria
by Howard L. MudrickThis article provides a good overview of several traditional law firm compensation models and thier pitfalls. Mudrick offers some additional factors that law firms should consider adding to their compensation systems. Mudrick was a member of the MPF Faculty for several years before joining Phoenix-based Jennings Strauss as COO in 2008.
- Partner Compensation Systems in Professional Service Firms - Part 1
by Michael J. AndersonThis is the first of two articles Anderson has written on the topic. He asserts that, while there is no perfect system, a good compensation plan supports and aligns with the firm's strategic goals and objectives. Be sure to read Part Two of this article, as well.
- Partner Compensation Systems in Professional Service Firms - Part 2
by Michael J. AndersonThis article, coupled with Part 1, is a great resource if your firm is considering changes to its compensation system. Warning: Proceed with caution!
- Best Practices for Setting Managing Partner Pay
by Peter A. GiulianiHow should a firm appropriately compensate its managing partner for the non-billable time required of the role? Take a look at Peter Giuliani's article that appeared recently in the ABA's Law Practice Magazine.
- Dealing with Tensions Surrounding Partner Compensation
by Joel A. RoseThis article presents a good overview of various compensation systems and poses the question "Is there an ultimate solution to setting a partner compensation formula?"