I'm putting together a comparison of incentive structures in professional services firms. Please share examples of how yours works! Looking for responses from those with thorough understanding of the mechanics.

I'll go first - see comments. Thanks in advance!

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Our pool initially funds at a fixed % of operating income, and is allocated to individuals targeting a "sharing rate" of their total personal billings. Eg, if for a given level the target sharing rate is 30%, the initial bonus calculation is 30% of their billings (# client hours x that consultant's hourly rate), minus salary. The actual payouts are then adjusted based on assessment of their performance (ie, quality of the work), soft stuff like firm-first attitude, non-billable contributions, growth potential / trajectory, etc.

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