By Brenda A. Barnes and Camille Stell Partner compensation is probably one of the most sensitive aspects of a law firm’s practice management. Whether you are adopting a new system or modifying the current one, there must be an extraordinary amount of thought, care, and study. Systems are either non-performance-based systems or performance-based systems. Here are the typical systems: Non-Performance-Based Systems: Ownership percentage: Income is allocated on relative ownership percentage. Pay equal: All partners are paid equally, or nearly so. Seniority or lock-step: Partners are paid based on years as a partner. This method is all but obsolete, however, some firms still have a baseline built into their systems for more senior partners. Performance-Based Systems: One person decides: Typically the managing partner or other designated key partner (often referred to as the… . . . read more