Help with salary negotiations for spouse? He is a senior associate at a small but successful Plaintiffs firm valued around $10 million (questionable number). Was offered equity partnership but turned it out as he would prefer to be a non-equity partner (multiple reasons). He currently has a base salary of about $150k and gets anywhere from 25-100k in bonuses from the associate bonus pool. Cases brought in are treated differently. The two options we’ve thought of so far are....

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A) slightly lower base (125k) and a 10% cut of all cases he works on (another partner gets 20% of all he works on and no base)
B) Same salary, 10% cut but a 25k draw
C) fuck it plan of increase the salary and a 10% cut.

What other options are we missing? He’s incredibly valuable to the firm and is their only real trial attorney besides the main founder. The firm needs him more than he needs the firm but we have a very good relationship with the boss and his family and would like to stay here a bit longer.

Yeah, that’s definitely something we have been taking into consideration. Their firm had furloughed a couple people but as soon as settlements came in, they brought the people back. From what we’ve seen in the financials, even if this year is terrible, they’ll still be fine. My husband also runs most of the cases and one of the partners is likely on his way out (looking at an early retirement and acting like he’s already retired) so even if money wasn’t coming in, the caseload that they do have needs his attention. My husband is also the firm’s “rainmaker”. I personally wouldn’t have wanted to push for all this now during COVID but for a multitude of reasons it unfortunately has to happen now. We spoke about it at length today. Where we are now is a significant pay bump and a percentage but taking him out of the main bonus pool to free up that set amount of cash for other associates and the partner title. If not, an alternative would be for him to take on an of counsel role, work on an hourly basis and work up his own cases on the side. He has the ability to bring in a ton more business (usually) but they only deal with massive cases (for example they almost beat a record on a verdict they got last year in that particular category across the US) so he can’t bring those to the firm. With the latter set up, he could do those cases as a “solo” of sorts.

Can I ask why he doesn’t want to be an equity partner?

Mainly because we didnt trust the valuation vs the cost of the buy in and the debts the firm has. Main partner also wants to retire in the near future and his name is the biggest draw. Money could very well dry up once he is gone.

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Op were you going to finish posting?

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