The Managing partner and majority shareholder at my firm just told me they set the partner compensation based solely on his discretion. Not other insight or approval from other partners and there is no set formula based on book size. Is this normal? We are a $14M firm.

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I’m at a larger firm, with some more structure than one decision maker, but it’s not always as simple as making it a formula based on book size…

How would you handle a partner who mostly brings in business and doesn’t service much business? How would you handle a partner who’s the technical go to for other partners or in charge of training? Other admin functions? Service line leader (e.g. tax)? Etc.

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How many partners are there?

Seems a bit strange. Not completely unheard of though. Especially if there are not many other partners and they are relatively inexperienced.

I work at a similar sized firm. Well similar in revenue anyway. We did a little over $11M last year. Partner compensation is based heavily on book of business size for us.

I think there a little bit of that everywhere. I was told by the partner that our reviews, and as a result comp, were strictly a quota.

I'm not a partner, so it's not exactly what your getting at. But I've found that comp is often not as merit based as you would hope. And is some cases that works out great for people. In other not so much

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