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My partner does business and real property litigation and I do business/real estate transactions/corporate law. One associate does only transactional work and one associate does both.
Sorry - no input to contribute, but Interested to see what feedback you receive!
Curious, actually - how many years have your associates been licensed? What range is their salary in? Does your litigation associate handle cases on his/her own, I.e., go to Court, motion argue, draft/file, email OC, negotiate/settle, etc.? Essentially asking how involved your lit assoc is with the firms cases and their autonomy on the cases, and in general overall. Does your firm currently have a bonus/commission structure for the associates?
Lit associate is 8 year and we recently made her a non-equity partner. She all that you mentioned and has her first trial next month. We have bonus plan based on meeting quarterly hour minimums. We thought it was really low bar (1400/year) but neither have met it. Small town practice and our associates prefer W/L balance to making $. Can’t fault them but it’s a different environment from our backgrounds coming from big firms.
I’m a partner (despite that Fishbowl says I’m Senior Counsel) at a four member firm with no associates. All transactional real estate work with plenty of work to go around. Each partner gets 45% of their billables, with 25% to the originating partner, and the remaining 30% towards our operating account. Our overhead is low so at the end of the year we split whatever’s left in our operating account evenly.
My billables are good. It’s bringing on clients of my own that I’m working on now to keep that extra 25% in my pocket. We’re so busy though that if we bring much more work in, we will need to add another attorney or two and we are really wary on bring anyone new on that could upset the chemistry we’ve built.
He may have told me when I first started but I honestly don’t remember. Bonuses were around $10k-$15k per quarter so I wasn’t complaining. Of course, Covid hit and everything went off the rails. Bonuses were gone and everyone took a pay cut. By the time bonuses would have started up again I had made partner. That was a whole different set of things to worry about.
My firm does 12.5% origination fees, but they cap after several years. And they have to be an eligible client. They are paid to all attorneys regardless of status. The partner split at the end of the year is . . . unusual and complicated.
The lead needs to somehow be from a contact of yours. It cannot be related to an existing client, unless it is still within the origination period, not from a source paid for by the firm (e.g., internet, an event the firm paid for, firm advertising, etc.), and cannot be a rando calling/emailing the firm. We also only get credit for the first four years. There have been talks about expanding the policy, I assume to give limited credit for internet leads, but that hasn't happened. The current policy leads to a fair amount of lying by a couple of partners when they open files. So the honest ones are punished, and the greedy ones are rewarded. I've also seen someone spend an entire week fighting over a $300 origination fee. 🤣
We are a two partner firm, no associates yet. We split everything 50/50. There will be months where I have higher billables and then months where my business partner has higher billables. We were going to implement an origination bonus structure but felt it wasn’t worth it at the time.
Are you all using a payroll program or just taking draws?
10% extra to originating or primary lawyer who secured the account/resolution