What is the typical compensation model for income partners?

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The minimum the firm can pay you without you storming out the door when it’s announced. They want you to be upset, but not so upset that you won’t roll the dice on another year.

- “A Salty Underpaid Income Partner.”

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Funny because it’s true! The numbers are there to: be reviewed, be considered, justify decisions, excuse decisions, or be ignored as the (insert decision maker(s)) see(s) fit

A subjective one

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Is there typically a formula? E.g. x% of the collected dollars that you originate, y% of the collected dollars from work you perform for other partners’ clients, etc?

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Yes, generally. E.g., X% of work you originate but don't work yourself, Y% of what you originate and work, Z% of what you work but do not originate. The key is to leverage the work you originate. It's like passive income on top of what you do.

More than a sr associate, but less than a first year equity partner. At US big law, that’s generally between $400k and $800k, but the range varies some from firm to firm. If you bill 2000 hours, then your comp should be near the lower end until you also generate more than $1m of business on a consistent basis. Once you generate your own work, comp should increase, but not above 1/3 of your originations. Once you get more than $2.5m consistently, you should probably be in equity.

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