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Law Office Management of the discussion, too. That includes issues surrounding retirement and liabilities should the partnership dissolve, which could involve severance obligations for staff and long-term file storage costs. "I would hope they spend as much time drafting those agreements for themselves as they would for their clients," says Ferguson. From a compensation perspective, Colin Cameron, of Profits for Partners Management Consulting Inc. in Vancouver, points out there are three main types of partnership arrangements: the equality partnership, the formula-based partnership, and one based on the subjective merit compensation system. All require some kind of a buy-in, typically a year's salary that can be paid up front or deducted from the lawyer's draw, usually over three to 10 years. "In my experience, equality compensation systems are most common in small firms (under 10 lawyers), as they are the simplest to manage. Subjective merit compensation systems are more common in mid-size and large firms. These systems take more time and effort to manage, but users believe they result in higher profitability," says Cameron. The formula-based model sees the individual lawyer receive a percentage from the firm every year. A partner more involved in management and supervisory roles might well draw a higher than average percentage. Productivity and performance also figure into the calculation. Subjective merit compensation takes into account the accomplishments of each of the partners. The firm's compensation committee makes the determination based on subjective elements of what the partner did for the firm, like training others, playing a supervisory role, and bringing in clients. The criterions, which examine accomplishments, are subjective, over and above the numbers. There are other options to traditional partnerships. Smaller collectives involving cost sharing or space sharing arrangements are increasingly popular. But the earnings remain yours in these eat-what-you-kill arrangements. Typically the administrative aspects are shared. And if one lawyer has a more active practice with more assistants and clearly uses a larger portion of the administrative supports, some sort of compromise, often through a cost percentage, is negotiated. The objective of buying into a firm is to invest in it, seeing the capital returns when it's time to leave or retire, and enjoying the annual profits and distributions during the time they are a partner. "The equity partnership would typically be, in this market, about $275,000," says Adam Pekarsky, a partner in Calgary-based Pekarsky Stein. An associate in mid- to large-sized firms typically sees a lock-step compensation plan that is tiered based on year of call until a lawyer's earnings reach about the $180,000 level, so with each year of seniority, all associates in that year make the same amount of money. A lawyer going off the grid, achieving the maximum level of compensation, according to that formula, then qualifies for partner status. GAIN THE UPPER HAND WITH PRACTICAL GUIDANCE ON EVERY CRIMINAL DEFENCE POSSIBLE NEW EDITION CRIMINAL LAW DEFENCES, 4TH EDITION PAT KNOLL, Q.C. Discover why top criminal lawyers across Canada have been turning to Criminal Law Defences for decades. Criminal Law Defences, 4th Edition still remains the only reference to carefully and concisely review every single positive defence available in Canadian criminal law – including lesser known defences not found in standard texts. Now, you can own the all-new fourth edition of this practical guide, newly updated with a thorough review of the latest significant developments in criminal law defences. In Criminal Law Defences, 4th Edition, you'll find a clear examination of the requirements for proof of a crime; a straightforward explanation of each defence; and a concise analysis of how the courts have interpreted it in recent decisions. You'll learn exactly how each defence attacks the Crown's case, where the strengths and weaknesses of each defence lie, and how shifting standards and burdens of proof affect the strength of the defence. ORDER # 985530-65203 $147 The concise digest format helps you quickly pinpoint all possible defences, and the author's insightful analysis and expert guidance help you identify where to concentrate your efforts. Softcover approx. 320 pages August 2013 978-0-7798-5530-8 Shipping and handling are extra. Price subject to change without notice and subject to applicable taxes. AVAILABLE RISK-FREE FOR 30 DAYS Order online: www.carswell.com Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800 AUTHORITATIVE. INNOVATIVE. TRUSTED. 22 Jan uary 2014 www.CANADIAN L a w ye r m a g . c o m

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