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That's really helpful, thank you! Do you then get a certain percentage of collections for any clients you bring in? What's reasonable there?
Ours is a straight percentage regardless of whether you brought it in or worked it. That is, I bring in a client and they generate $100k in collections that is billed entirely by associates; assuming our profit margin that year was 40%, I get $40k (distributed half when collected, half at the end of the year to account for the calculation of profit margin which happens in December). Same year, I bill $100k worth of collections to my partner's litigation matter, I get $40k of that too. There's some calculus involved in cross-partner billing, but that's factored into the profit margin calculation. We have special arrangements for non-equity partners that work differently since they typically generate less business.
Mine’s a guaranteed salary which translates to 50% of collections up to a dollar amount milestone and then 20% for collections over that. I also get a discretionary bonus and profit share.
Usually total comp around 1/3 of the firm’s cut is a good yard stick.
Ours is tied to firm performance, ie, if the firm’s margin is 40% that year, I take home 40% of my collections. If the firm is at 25%, then so am I. Agree with earlier comment that 1/3 is a good benchmark, but it depends on size of the firm. The smaller the higher it should be
I get 25% of all collections once I hit 2x my base salary.
It could be if you are billing at higher rates and the partner you are working with doesn’t write off a bunch of your time. I’ve seen it drive associate animosity and a ton of departures.