Tag Archives: Partner compensation

Origination Credit is a Mixed Bag

With increased competition among law firms, business development is a top priority. To maximize revenues, many—if not most—law firms incentivize rainmakers via compensation models which encourage business development. They track originations as a way to reward those who bring in the most business. Historically, however, the most profitable U.S. law firms never tracked originations. They…
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Profitability, Not Size of Book, is Key to Lateral Partner Success

The size of the candidate’s book of business is not the controlling factor in determining the success of a lateral partner hire; rather, profitability is the key concern. A $5million book of business is not worth the same to every law firm’s bottom line, and the calculation depends upon several factors. The true value of…
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The Billable Hours Crunch

Billing by the hour remains central to private law practice despite its adverse impact on client service and lawyers’ quality of life. More than a decade ago, a 2002 ABA Commission on Billable Hours study discussed the negative effects of hourly billing and urged alternative billing arrangements. Most lawyers in practice today consider hourly billing…
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