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Hello, I need thoughts on this pls..
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This is what we do: base salary plus quarterly bonuses based on collections. To qualify for the bonus, the associates have to collect more than 200% of their gross base salary in a given month. If they do so, they get 40% of whatever they collect above their bogey. We pay the bonus quarterly.
Thank you
We pay bonuses monthly. Attorneys are expected to generate income that is at least 2x their gross salary. We pay out a percentage of all an attorney’s billables that exceeds their gross pay, but in a tiered system. For example, if a new associate attorney is paid a base salary of $82k annually, we would pay a monthly bonus as follows: for all income generated by that attorney between $7k - $11k for the month (we start with the $7k because that equals (roughly) the attorney’s gross salary per month), we bonus the attorney at 5%. If the attorney generates $11k in one month then, s/he would get bonused 5% of that extra $4k the attorney billed over and above their gross monthly pay. Then for income generated in excess of $11k but less than $13k, we bonus that attorney 10% of that revenue (so if the lawyer bills $13k in one month, they get 5% of the $4k generated in that first tier discussed above, and then 10% of the $2k billed over and above that first $11k). Then from $13k to $15k in income generated during that month, we bonus the attorney 15%. And so on and so forth... $15k - $17k billed in one month amounts to a 20% bonus (plus all the money they earned in each of the lower tiers). We cap out our bonus percentage range at 25%, where the attorney would take home 25% of all the income s/he generated in excess of $17k for that month. We pay bonuses on a monthly basis, but 90 days after the bonus was incurred so we have time to get the money in the door before the bonus payment comes due. For ex, a bonus based on a lawyer’s billables from the month of January would be paid on the employee’s April 30 Paycheck. Hopefully that makes sense!
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