Articles by Debra L. Bruce Archives | Page 5 of 16

17 05, 2012

Partner Compensation Plans – Lock Step (Part 4 of 7)

2019-03-11T22:32:20+00:00By Debra L. Bruce, JD, PCC.|3 Comments

This is the 4th article in a series of 7 discussing structures that law firms tend to adopt for partner compensation. In Part 1 we discussed the Monarch structure, in Part 2 the Parity structure, and in Part 3 the Executive Committee Monarchy.

Lock Step

Description

This model is used mainly in large, stable, well-established firms that have a lot of institutional clients. It rewards seniority. Usually, all of the lawyers who become partners in the same year are a class, and make the same compensation. The class as a whole receives an increase in points, which are the basis of allocating profit distributions, when they are elevated to the next level. Typically, the spread between the salary of the highest paid partners and the lowest paid partners is not that large – 3 or 4 to 1 is not uncommon.

When It Works Well […]

16 05, 2012

Partner Compensation Structures – Executive Committee Monarchy (Part 3 of 7)

2019-03-19T21:28:11+00:00By Debra L. Bruce, JD, PCC.|3 Comments

This is the 3rd article in a series of 7 discussing the different kinds of partnership compensation structures that law firms tend to adopt. In Part 1 we discussed the Monarch structure, and in Part 2 the Parity structure.

Executive Committee Monarchy

Description
Both of the prior structures are usually only found in small firms of ten partners or fewer. In a larger firm, the Monarch structure may be expanded to a ruling executive committee. In this situation a rather stable and predictable executive committee functions like a single monarch. Usually they are the founding partners or otherwise the most experienced lawyers in the firm.

When It Works Well
This structure works when the […]

15 05, 2012

Partner Compensation Structures – Parity (Part 2 of 7)

2019-03-19T21:26:59+00:00By Debra L. Bruce, JD, PCC.|4 Comments

This is the 2nd article in a series of 7 discussing the different kinds of partnership compensation structures that law firms tend to adopt. In Part 1 we discussed the Monarch structure which involves one partner who rules over the others on compensation issues.

Parity

Description
All of the partners split the profits of the firm evenly. This format usually comes out of a situation where two or three lawyers of similar vintage are friends, and decide to form a partnership.

When It Works Well
When the lawyers have […]

14 05, 2012

Partner Compensation Structures, A Seven Part Series – The Monarch (1 of 7)

2019-03-19T21:29:20+00:00By Debra L. Bruce, JD, PCC.|1 Comment

Partner compensation, Law firm compensation, Compensation structures, partner compensation structure, shareholder compensation, The Monarch Structure

10 05, 2012

Reducing Culture Clashes in a Small Firm Merger

2019-03-19T21:32:16+00:00By Debra L. Bruce, JD, PCC.|Comments Off on Reducing Culture Clashes in a Small Firm Merger

“We’re thinking about combining our firm of three lawyers with another small law firm. Do you have any guidance for us on what to consider in making our decision?” Clients ask me questions like this more frequently these days.

In some cases, a booming law practice has rainmakers looking for experienced help. Some senior lawyers in solo and small firms consider mergers as they begin thinking about succession planning. Sometimes young lawyers with developing practices seek to cut per capita overhead by spreading fixed costs across more fee earners. For some small firms, the merger mania in BigLaw has stimulated them to consider their options.

When contemplating a merger, many risks and rewards must be considered and due diligence investigations should be conducted. Culture clashes undermine mergers more frequently than any other factor, however.

When there are only 5 lawyers in the whole office, common values become even more critical. There is nowhere to hide. Variances in strongly held beliefs and values tend to grow from cracks to chasms. They can threaten the productivity, health and work satisfaction of everyone in the office, as well as the success of the firm as a whole.

Fortunately, with fewer people involved in a small firm, it can be a little easier to identify and discuss issues that may develop into rifts in a law firm partnership. Here are a few subjects to discuss.

1. What is your attitude toward money and the firm’s fiscal policy? Do you advocate leveraging debt to help the firm advance quickly and to weather dry spells? Or do you prefer a more conservative pay-as-you-go approach, relying on partners for any bridge loans required during slower periods? […]

3 05, 2012

Warning: Avon May Call You, But Microsoft Won’t

2019-03-19T21:34:47+00:00By Debra L. Bruce, JD, PCC.|1 Comment

The internet crawls with scam artists circulating myths, bogus horror stories, urban legends and snake oil sales pitches. I often use the Snopes website to verify or debunk any weird or cautionary emails I receive. According to a New York Times article about the Snopes founders, their fact-checking website gets around 8 million unique visitors per month. This time I didn’t need Snopes to verify the warning I received in a recent email. It came from our trustworthy IT consultant, Lee McAdory. Here’s what Lee wrote: […]

12 04, 2012

Is Your Law Practice Evolving or Devolving?

2019-04-01T21:02:53+00:00By Debra L. Bruce, JD, PCC.|2 Comments

Most lawyers evolve as they develop experience. They learn from mistakes and from observing other lawyers. Although every lawyer is different, most go through some of the same predictable stages.

Conscious Incompetence
You’ve just graduated from law school and passed the bar. Whether it’s your first client or your first assignment from a partner, your excitement is mixed with anxiety. You’ve never done this before. You don’t really know what you are doing. You’re scared that someone will find out.

Unconscious Incompetence
You have some experience under your belt. You feel like you know what you’re doing. In fact, in some circumstances you actually do know what you’re doing, but you don’t know what you don’t know.

As a young lawyer negotiating agreements, I carefully examined every aspect of the proposed contract. I was trained in a prestigious firm that expected perfection from its lawyers. I sought to achieve a pristine document that gave my client maximal protection from every conceivable mishap. […]

7 03, 2012

Are Smartphones Confidentiality Risks for Lawyers?

2019-04-01T21:03:49+00:00By Debra L. Bruce, JD, PCC.|Comments Off on Are Smartphones Confidentiality Risks for Lawyers?

Jared Correia of LOMAP posted some important factors attorneys should consider in response to a question he frequently gets: Should solos use a smartphone as their primary telephone? He pointed out a number of concerns that the lawyer should address, including the ability to “wipe” a lost or stolen phone, and Plan B for practical issues such as dead zones and dead batteries, for a mobile lawyer.

I would like to add another security issue that should be taken into account. All lawyers, including those who also have a regular land line at the office, should give some thought to this. More and more issues are surfacing about apps having unexpected access to data stored on or transmitted by smartphones. Today the Washington Post reported that “Sen. Chuck Schumer (D-N.Y.) has called on the FTC to investigate Apple and Google after reports that smartphone and tablet apps could pick up more data from consumer’s phones than they realize.”

[…]

6 03, 2012

Groupon for Legal Services: What Could Work and What to Watch Out For

2019-03-19T22:14:27+00:00By Debra L. Bruce, JD, PCC.|Comments Off on Groupon for Legal Services: What Could Work and What to Watch Out For

I previously blogged about the results one lawyer obtained when he promoted his law practice using Groupon. That post generated a number of informative comments which I recommend reading. Before rushing off to get an advisory opinion on the permissibility of daily deal advertising in your state, however, make sure you understand how the process works. A daily deal is essentially “loss leader” advertising, the success of which depends on selling additional services at full price at some point.

What Services Fit a Daily Deal? […]

28 02, 2012

Did a Groupon Really Work for a Solo Lawyer?

2019-03-19T22:24:17+00:00By Debra L. Bruce, JD, PCC.|Comments Off on Did a Groupon Really Work for a Solo Lawyer?

Last year St. Louis attorney Craig S. Redler garnered a lot more attention than he really wanted when he offered a discount coupon for a will and power of attorney through daily deal promoter Groupon. Groupon sends its members targeted advertising of daily virtual vouchers entitling the purchasers to products and services from local businesses at deep discounts through group purchasing. If a large enough group commits to purchase the coupon, the deal is on. Thus, the name Groupon. The company was founded in 2008 and its business took off so rapidly that it now has hundreds of copycat competitors. Some of the other big players in the daily deal market include Living Social, Google Offers and Amazon with its Gold Box Deals and Woot.

A Virtual Ethics Exam

Groupon grabbed headlines when it went public in 2011. Its CEO was interviewed on 60 Minutes even as I was writing this post. What focused the legal blog spotlight on Redler, however, was the question of whether advertising through Groupon could constitute fee splitting in violation of Rule 5.4(a) of the ABA Model Rules of Professional Conduct and most state ethics rules. […]

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