In this first of a two-part video series focusing on law firm partner remuneration and profit sharing systems, Clare Murray (Managing Partner, CM Murray LLP), David Shufflebotham (Founder, Pep Up Consulting), and Corinne Staves (Partner, CM Murray LLP) discuss the following:
- What are the principal challenges and notable differences in partner remuneration systems between large international firms and small to medium-sized practices?
- Can such challenges be resolved with short-term fixes, or do they usually require a major overhaul of the remuneration system? How do you determine the best approach to take?
- To what extent do effective partner remuneration systems require alignment with the firm’s overarching strategic objectives, as well as a robust framework for evaluating partner performance and contributions, beyond the typical financial metrics?
- How do firms balance the need to remain competitive on partner compensation in order to retain top talent, while ensuring their remuneration policies reflect the firm’s culture, values, and desired behaviours?
- Why is changing partner remuneration systems particularly arduous for firms transitioning from an “eat what you kill” model, versus those coming from a lockstep system? What factors contribute to this disparity?
- What leadership qualities are essential to successfully obtaining buy-in from the partner group of the merits and necessity of implementing a new remuneration system?
In part two of this series, Corinne, David and Clare will delve into the strategy and implementation of developing a new remuneration system.
If you would like to discuss your partner remuneration system in more detail, or if you have any questions arising from this video, please contact Corinne Staves (Partner, CM Murray LLP), David Shufflebotham (Founder, Pep Up Consulting), or Clare Murray (Managing Partner, CM Murray LLP).
