Why you must address partner compensation challenges
Abstract: In this recessionary environment, many firms are finding that their pie has stopped growing or even has shrunk — and that partner compensation has become a contentious issue that perhaps even threatens the firm’s viability. A firm isn’t safe just because its compensation plan is merit-based. Many firms that have a merit-based plan on paper don’t have one in practice. So top performers may be more tempted to jump ship, while less revenue, more layoffs, and tight credit further challenge plan viability. There are a number of specific steps a law firm can take to answer these challenges — but such steps must be effective over the long term.