Partner Compensation

Firms use a wide variety of plans to allocate income to their partners. But are the plans effective? Are they fair? Are the partners happy with the plan?

We do extensive work with firms in the partner compensation area. Many of our clients are seeking an updated compensation system that:

• Rewards partners for their contributions to the profitability of the firm.
• Includes input from partners with varying perspectives.
• Establishes a fair set of criteria that partners agree would drive the firm toward its strategic goals and allow partners to understand what they are “supposed to do” to benefit the firm’s profitability.
• Plans for transitioning any new changes over an appropriate period of time to facilitate adoption and adjustment to new methodologies.
• Competes with the current marketplace changes: enabling recruiting and retaining new partner talent balanced with recognizing long-term value created by senior partners.

Here is how we work:

1. We review your firm’s financial and production data and gain an understanding of your current compensation system.
2. We conduct confidential partner interviews.
3. We share alternative partner compensation concepts and methodologies used by other firms.
4. We collaborate on the design of an updated system that would best suit your firm, typically during an in-person Design session lasting 1-1.5 days.
5. We create written documentation of your proposed new system.
6. We present the proposed changes to the full partner group.
7. We facilitate a group discussion to finalize and create buy-in for your new compensation system.

If you have questions on how an updated partner compensation system may benefit your firm, contact Kristen Rampe at kristen@rosenbergassoc.com.