ANA POINT, Calif. — Law firm compensation, in flux since the last recession, won’t return to the old status quo. More firms are linking compensation to firm-wide objectives, while compensation committees want to spread wealth and acknowledgement among associates and allied legal professionals as well as partners.
The panelists of a session titled, A House Divided: Assessing Employee Compensation Models Across the Firm, held last month at the 26th Annual Law Firm Marketing Partner Forum, agreed that in an era of law firm dissolutions, increased lateral hiring, and revolving-door partnerships, firms have to revamp traditional compensation models.
As moderator Rod Osborne, managing director of Law Firm Management at Major, Lindsey & Africa, said in his opening remarks, more firms are “moving away from compensation models based on individual production and origination in favor of newer models rewarding client experience and teamwork. That’s harder to measure.”