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Bonus structure and bonus payment vary firm to firm. You would need to negotiate the bonus percentage and other compensation details, or at least make sure you understand what they are in order to evaluate the opportunity. I think typical bonus would be 5% of fees for cases that settle pre-trial and 10% of fees for cases that you win at trial. For cases that you originate, you would typically get 1/3 of the fees. Many firms pay out bonus yearly, others pay quarterly. Some may agree to pay the bonus as earned (I.e., at the time funds are disbursed to client and lienholders), but this is uncommon. You can often negotiate a higher base or higher bonus percentage by taking a lower amount on the other. For example, if they offer $75k with 5%/10% bonus, you could counter with $100k and 3%/10% or whatever.
Also, you need to consider the type and number of cases that will be on your case list. If you have a small case list or a case list with lots of small policy limit cases, the bonus will likely be smaller than if you gave a larger case list or a case list with high-value cases. And, auto cases tend to be much easier than nursing home cases.
I used to do auto defense and I'm so burnt out from that world, I don't think I could do auto again. In michigan at least, it's terrible. Got it that's what I was wondering because I would be more concerned with having a consistent check to pay bills without a significant pay cut. Thanks a lot!
For sure. In that situation you’d probably want to push hard for a higher base and sacrifice some of your top-end potential, especially if you want to maximize 401k or something like that. I’m unfamiliar with your market but $160k-$250k base with 3-5% bonus pre-trial is not unheard of. You don’t want to do auto, but…. With your background in auto defense, high-end PI firms would be interested. If you have extensive auto defense background, you may even look at getting into a lead/manager type of role advising younger attorneys how to deal with ID tactics.