As an equity partner vested in a firm, isn’t it your right to understand how compensation is divided amongst you and your peers? The case for transparent partner compensation is powerful enough to uphold time-honoured systems in most of the Am Law 100 firms. However, certain firms are now swaying towards a more concealed or ‘black box’ system, with compelling reasons such as avoiding discord that arises from high paydays for rainmaking laterals.Read More Here
Juxtaposing this, Jeffrey Lowe suggests, “It is so much easier to keep people happy when they can’t see someone making more than them even though they have more in originations.” This sentiment reflects the growing belief within firms implementing opaque compensation models.More Details Here