Achieving fairness and aligning with your strategies.
Ensure the design of your firm’s partner compensation’ system aligns with your strategy
To paraphrase Peter Drucker, if your compensation system says “white” and your strategy says “black,” you’ll get white every time.
At too many firms, compensation-setting can be an onerous, divisive undertaking, leaving everyone exhausted and no one happy. But it doesn’t have to be that way. We’ve worked with numerous firms to help them develop compensation systems that are perceived as fair, while supporting the firm’s overall strategic direction. Not only does this reduce internal friction – the process keeps the firm going in the right direction.
As with all we do, we believe that every firm is different. So we have no templates, no one-size-fits-all approach. And in our compensation practice across a wide variety of firms, from large to small and from single-office to global, we see that compensation systems are more varied than any other fundamental business function. (Open versus closed, formulaic versus subjective versus some combination of the two, etc.) And all these variations can work; firms need to identify which system is best for them.
Whether for an overhaul, tweak or sanity check, we help firms develop the optimal compensation system and setting process – for them.