Law Firm Compensation for TIme Spent by Partners Managing The Firm

Question:

Firm has three partners, two associates, and 2 staff members. We are a new firm and just started in practice a year ago. We are equal partners and we allocate compensation equally based upon these ownership interests. We believe the system has worked well for us but we been considering whether one person should handle all the management duties and if so how that person should be compensated. We would appreciate your thoughts.

Response:

First I would identify the duties and hours involved and make sure the duties are managing partner level duties and not office manager level duties that should be handled by staff. Delegate or consider hiring an office manager for duties than can be delegated. For duties that can't be delegated I would suggest you that a look at the hours that will be required and determine a fixed additional compensation amount based on expected hours and the partner's standard billing rate. The partner's compensation would be his/her fixed additional compensation amount plus his/her allocation based upon ownership interest.

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John W. Olmstead, MBA, Ph.D, CMC

Posted at 07:53 AM in Compensation
Tags: by, Compensation, Firm, for, Law, Managing, Partners, Spent, Time

Mar 30, 2016

Law Firm Compensation for TIme Spent by Partners Managing The Firm

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