Managing Attorney Structure/Comp
Senior attorney being asked to move from production into building and running a pod of associates, some experienced laterals, some brand new with no cases. I’d ramp my own billing down as the management load grows.
How is this actually paid at your firm?
Is the managing cut a percentage of associate collections, or of a margin (collections minus salary, or collections above a multiple like 3x)? Does it start from the first dollar, or only after they cross a threshold? If there’s a threshold, how do you get paid during the year you’re building someone from zero, before they produce?
Is there a flat management stipend on top, or is it all production-based?
Trying to figure out whether there’s a market standard for compensating the build itself, versus just paying the managing cut once associates are already producing. Any real structures or numbers appreciated.