Note: This is the latest in a series of contributions from the Lateral Links team by experienced contributors. David Lat is Managing Director of the New York office, where he focuses on placing collaborators, partners and partner groups in exceptional law firms across the country. Joe Patrice: Yes, especially in Kirkland, and it is important to note that Kirkland is a bit unique in its implementation of this strategy. Other companies have these revenue partners or not, but few people really push it like Kirkland does, while being as profitable as Kirkland. All these years of hard work finally paid off and they were invited to the partnership! Now you have the opportunity to earn more money; You can join the players at the partnership table and have an active eye on the company`s work. Their future in the company is assured. That`s how you think… “Ask yourself – what are the benefits of being a partner in this company?” advises Richard Ferguson, who practices at Lynass, Ferguson and Schoctor in Edmonton. Part of your compensation depends on the success of the company. As a non-partner, you can get better results; Sometimes lawyers earn more than partners in the contract. These analyses contain the true indicators of the partner`s status in the firm, which has a wide variety of ethical, contractual and legal implications for the lawyer and the law firm. It is therefore important that all partners in law firms analyze and understand these issues before entering into a partnership or planning an exit from a law firm, as they are essential for a successful transition for a law firm or non-equity partner.
Companies use non-equity partnership to reward individuals and allow them to move forward on the business leader while keeping control and money in the hands of a few people at the top. The system is also used in other organizations such as non-tenured and assistant professors in universities and vice-presidents and directors in large companies. They should ensure that the compensation provisions are flexible enough to allow for contingencies. “If you have a rigid formula for distributing profits or bonuses, you don`t know what it will have for you as a new partner,” says Ferguson. “It`s good to know that there are adaptations for space if the formula doesn`t accurately detect what happened in a certain year of partnership.” In many companies, there are two levels of partners: equity partners and non-equity. Joe Patrice: Someone who owns the business, and associates, were chosen from the ranks of lawyers as people who owned the business. They were therefore not paid a salary per se, but part of the company`s profits. Anyway, these partners are thus paid and, over time, we have now developed a new system in which some companies, Kirkland-Ellis, which are the subject of this article, instead of another level of lawyers or advisers or special advisers, as they previously called it, call these persons partners and by partners – A partnership contract without equity is a contract the rights and obligations of a partner who does not have equity in a company business.3 min. As part of a general partnership, the partners are jointly responsible for the company`s debts and obligations.