How Partner Compensation is Changing

Source: Management Catalyst

Changes in partner compensation are rooted in two phenomena:

• Firms need partners to be involved in staff development (because of staff shortages and the heightened need for succession planning).
• Firms are witnessing the value of management and leadership development.

For many years, firms made no connections among strategy, partner evaluations and partner compensation. Firms now know that strategic planning is not effective if partners are not accountable for execution, and the best way to make them accountable is through compensation.

Production, while still important, is not the only factor firms are using to determine partner compensation. Others are:

• Leadership.
• Helping younger partners and staff to advance.
• Assigning clients to other partners to enhance service.
• Maintaining high levels of client service.
• Creating multiple partner relationships for larger clients.
• Totally buying in to the firm’s core values.
• Adhering to firm policies.
• Treating staff and other partners with respect.

From Management Catalyst, a publication of The Rosenberg Associates, Ltd., Wilmette, Illinois (www.rosenbergassoc.com), spring 2007, p. 1. For the complete article, click here.