Partner Comp - How to Link to Performance
How can you link Partner compensation to performance? The first step is to determine how to measure performance, here are some of the common ways to measure performance:
- Production: Finder, Minder, Grinder
- Leadership roles (not low level administrative)
- Achieving high value individual partner goals aligned with the firm’s strategic plan (may include client transition for retiring
partners) - Historical value
- Intangibles (see next slide)
The major pros to performance based comp are this system rewards current and historic value each partner provides to the firm, encourages achievement of firm’s goals and can integrate rewarding of intangibles and teamwork.
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