Partner Compensation Consulting
Partner compensation plans function best when they align to your firm’s strategy and culture and instill a sense of perceived fairness amongst all partners. Inherently they are all different, yet a well-run plan is at the heart of any successful law firm. The specialists at Barto Consulting LLP incorporate years of experience in designing and implementing compensation plans to help law firms find the delicate balance required to adopt the plan that will function best in their unique situation.
Even after implementation, applying the terms of the plan, performing calculations, making sure the dollars go to the correct individuals and are reported properly on the tax return all pose additional challenges. Barto Consulting LLP is your all-around resource for your compensation plan and provide the following services in this area:
Partner compensation plan design and implementation
Using a process that incorporates a sound understanding your law firm’s strategy and culture with our deep expertise in the legal industry, Barto Consulting help to design and implement a system that will enable you to achieve your goals. Whether in growth mode or sustaining a profitable practice an equitable compensation system to attract and retain talented partners makes a successful law firm.
Barto Consulting brings15 years of experience in designing and maintaining compensation plans and strategies to assist with
• Developing compensation strategies align to your goals
• Designing compensation models that fit your strategy, culture and measurement capabilities
• Planning, implementing and communicating compensation structures
Succession / Retiring and Admitting Partners
On the surface, while it may seem simplistic, transfers of ownership can be fairly complex. While many factors are at play, this is predominantly thanks to two specific restrictions over law firm ownership and a client’s right to choose their counsel. When valuing your firm, these are key factors to navigate. Passing your firm’s ownership and leadership to future generations in a way that retains and builds enterprise value is key to maximizing the value of your buy out.
• Succession / Retiring and Admitting Partners
• Succession Planning
• Retirement strategies
• Path to partnership
• Leadership Interviews
Year-End Planning and Annual Compensation Plan Administration
Year end brings a lot of activity for law firms but none more encompassing than making sure that your compensation plan is applied properly and in way that brings the most tax savings. This requires firms to have a very sound understanding of their financial performance for the entire period, not just the financial statements but each partners’ or business units financial performance. With many firms not having the luxury of waiting until after the end of the year this also requires a projection of what the rest of the year may bring. When dealing with compensation its important to get this right to instill confidence in leadership.
Most CPAs don’t understand this we help be the bridge between the firms existing compensation plan and what gets accurately reported on the tax return
