Would love some insight on compensation arrangements. This is not me, but attorney has worked for a small but very successful firm for just under 5 years. Setup is base pay $80k plus commission consisting of 33% of consult fees and 5% of cases worked. Last year attorney brought in $400k for the firm but was paid about $115k, over $20k of which was from consults. Attorney and is now doing less consults and more case work.
What’s a better way to restructure the compensation for attorney?

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What my firm does, and I really like, is a tiered commission structure based on fees earned. 10 percent up to $100k, then 15 percent up to $250k, then 20 percent up to $400k, and then 25 percent over $400k. The base is only $75k, but there's potential for really big money for those who generate the most fees. If the attorney generates new business, a tiered structure for fees generated could be worked in too.

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Great insight - thank you!

Our base is really really low, but we get 24% across the board up to $75k (does not distinguish between consults/hourly/flat fee) and then 26% thereafter. If we generate a client we get 2% of that business as well, whether it’s our client or in another practice area.

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33% consult fees? What area?

Give him 10%.

$115k for a 5th year in private practice is very low for any market.

We would need more info about previous years’ comp or how much other attorneys are earning with similar comp structure to tell you how to tweak it, but increasing base pay at a minimum would seem logical.

Attorney started working at the firm straight out of law school so started at about $50k flat. I think after a couple of years is when they started the commission structure. Base started at 75K then increased 5% at year four. One owner and two associates, she has no idea what the other ones make or bring in. 400 K is actual collected fees. They are an immigration firm that operates solely on the flat fees in the Virginia Beach area.

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