Canadian Lawyer

w w w . C A N A D I A N L a w y e r m a g . c o m J u l y 2 0 1 4 35 on the increase, with 49 per cent setting a monetary target for associates, up from 40 per cent in 2013. Of those firms that have a target, more than half set the bar above $200,000, while 44 per cent pay a bonus to lawyers who achieve the target. Commissions are paid to associates on files at 26 per cent of firms, up from 20 per cent last year. Typically, the commission rate was around 10 per cent, but in one case rose as high as 70 per cent. Carrie Heller, president of legal recruitment firm the Heller Group, says associates at firms of all sizes are feeling the pressure to bring money into the firm. "Most firms, even larger ones, are zoning in on the ability to generate business earlier and earlier," she says. "Maybe not in the first year, but certainly by the fifth year, they're trying to teach mid-level associates how to market themselves and think about what they have to do to be viewed as someone who can generate business." According to our survey, the only people causing manag- ing partners as much grief in the compensation department as their associates are their co-owners. "Partner inequities" and "partner percentages" were common headaches cited 78.05% No 21.05% Yes Sample size: 89 Sample size: 42 Sample size: 95 DoeS Your FIrM HaVe a tWo-tIer (i.E. EQUitY aND NoN- EQUitY) PaRtNERSHiP StRUCtURE? Hire more lawyers keep the same number of lawyers Downsize 47.6% 50.5% 1.9% IN tHe CoMING Year, Your FIrM WIll... 50% Salary 33.3% 16.67% Percentage/Share of profits Billable hour/revenue targets WHat CoMPeNSatIoN MetHoD DoeS Your FIrM uSe For NoN-equItY PartNerS? equal Partnership other 20.2% 27% Merit 14.6% eat What You kill 23.6% 3.4% 4.5% 2.2% 4.5% lock-Step Modified Hale and Dorr Simple unit 50-50 Subjective/ objective WHat CoMPeNSatIoN MetHoD DoeS Your FIrM uSe For equItY PartNerS?

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