The Challenge
An Am Law 200 firm’s lockstep partner compensation structure had a high billable-hours threshold. This structure acted as a disincentive to “rainmaker” partners who were actively engaged in business development, as they felt they were not compensated for their contribution. The departure of one key partner led the firm leadership to reconsider the compensation model.
Calibrate’s Solution
Calibrate performed an analysis of the internal and market factors behind the firm’s partner compensation. They recommended modifying the model to de-emphasize billable hours as the driving metric, and to explicitly reward cross selling success and business development.
Working with the Chair of the Compensation Committee, Calibrate help to facilitate consensus on the new model at the firm’s leadership table. Calibrate supported the development of a revised Partner Compensation policy, and recommended a series of change management interventions to ensure buy-in from the partnership.
Let’s Connect
To learn more about how Calibrate partners with firm leaders to help optimize compensation strategies, please reach out to David Schaefer, Managing Director of Leadership Advisory at Calibrate.
