(312) 781-9000
25 Nov

An Analytical Approach to Partner Compensation at Law Firms

by: Astor Professional Search

Firms are taking a more analytical approach to partner compensation, reports LegalTech News.  While partner compensation has traditionally been calculated in a more subjective manner, experts from legal software producer Aderant posit that “analytical models should be the best practice for determining law firm compensation.”

Market chart of business glowing stock graph or investment financial data profit on growth money diagram background with diagram exchange information. 3D rendering.

Dan Ronesi of Aderant argues that although law firms have started utilizing profitability as a metric for the firm itself , many are still hesitant to use this approach to calculate partner compensation.  Aderant cites perceived lack of access to data and inherent differences in profitability between practice areas as two potential challenges to the adoption.

LegalTech News further quotes Ronesi as advising to “locate the profit that one’s generated instead of the revenue that one’s generated,” since revenue, if increased inefficiently, does not necessarily lead to increased profitability.

Ronesi identifies three future trends in firm operations: using better technology to track these metrics, looking at the numbers more frequently to create new opportunities, and increased use of profitability in the compensation models (as quoted by LegalTech News).

 

 

author-bio-image author-bio-image
William Sugarman

William Sugarman is the president and founder of Astor Professional Search. He engages in the successful placement of attorneys with local, regional, and international law firms and corporations. Bill’s extensive legal and business development experience give Astor an edge over other legal recruiters nationwide. At the cornerstone of Bill’s strategic philosophy is providing the highest level of personalized attention to his clients and attorney candidates. This is also a key factor that separates Astor from other legal search firms, and it consistently delivers legal placements year after year.

Years of Experience: More than 20 years

Share it here
Related Posts
02 Mar Making a Lateral Partner Move After Sixty
Making a Lateral Partner Move After Sixty

There has never been a better moment for older lawyers to make a lateral partner move. From the COVID crisis to legislation to renew...

20 Apr Alternative Careers for Lawyers Who Don’t Want to Work at a Law Firm
Alternative Careers for Lawyers Who Don’t...

Alternative careers for lawyers who don’t want to work at a law firm include corporate consultancy, public relations, teaching and a...

10 Mar 6 Things Candidates Should Discuss with a Legal Recruiter
6 Things Candidates Should Discuss with a Legal...

Open and honest communication between legal recruiters and candidates is essential to identifying and approaching opportunities that...