partner compensation - Texas Bar Practice

Partner Compensation Structure Series—Part 2: Parity

The Second in a Series of Partner Compensation Structures: “Parity”By Debra L. Bruce, JD, PCC×Print PDF version Of This HOW TO GUIDE. Print the full 7-part series here.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 roughly equivalent abilities to generate business and compatible values and work ethic, they may be comfortable with this format. Frequently they have the same or similar practice areas, so changes in the economy, or other factors outside their control, affect their revenue generation capabilities similarly. They also usually share management and administrative duties fairly evenly. The format has the virtue of simplicity. It is easy to calculate and avoids arguments over nuances. It supports teamwork and cross-selling because “a rising tide lifts all boats.” If the lawyers have significantly …

partner compensation - Texas Bar Practice

Partner Compensation Structure Series—Part 1: The Monarch

The First in a Series of Partner Compensation Structures: “The Monarch”By Debra L. Bruce, JD, PCC×Print PDF version Of This HOW TO GUIDE. Print the full 7-part series here.I.      Introduction This is the first in a series of articles describing the most common structures law firms use for partner or shareholder compensation. For simplicity, the article refers to partnerships, but similar compensation models can be used in professional corporations or professional limited liability companies. The articles also point out the situations in which each structure works well and when it doesn’t work well. Appendix A (which will appear in the seventh post of this series) provides some sample language for a Modified Lock Step structure, which is one of the more complex structures to draft. The first structure mentioned is labeled as the “monarch” structure due to its prevalence in firms where one attorney tends to rule over all the others. II.      Monarch A.      Description One lawyer sets the compensation for all of the lawyers in the firm, each year.  This format usually emerges when one lawyer is or originally was the primary rainmaker for the firm.  Usually the other lawyers are making more money than they would be making …

maintaining - Texas Bar Practice

Partner Compensation Structures: A Seven-Part Series

Partner Compensation Structures: A Seven-Part Series Debra L. Bruce, President of Lawyer-Coach LLC, and member of the Law Practice Management Committee, has authored a new seven-part series on Partner Compensation Structures as a free resource. DOWNLOAD THE FULL SERIES HERE Or view each part below: Part 1: The Monarch Part 2: Parity Part 3: Executive Committee Monarchy Part 4: Lockstep Part 5: Modified Lockstep Part 6: Eat What You Kill Part 7: Appendix A Visit our How To Guides to read about more topics brought to you by the Law Practice Management Committee of the State Bar of Texas.Resources by TopicStarting A PracticeLearn what you need to know before you begin. →Maintaining a PracticeNurture your budding practice with our collection of resources. →Growing a PracticeTips to take your practice to the next level. →Succession Planning and PreparationIf you can’t be certain, you can at least be ready. →Closing a PracticeVital information for those winding down a practice for themselves or others. → Practice TechnologyLearn new efficiencies. Leverage technology. → COVID-19 ResourcesInformation relevant to Texas attorneys practicing during the pandemic. →Related ArticlesPartner Compensation Structures: A Seven-Part Series Debra L. Bruce, President of Lawyer-Coach LLC, and member of the Law Practice Management Committee, has authored a new seven-part series …

lamp - Texas Bar Practice

Set Up Your Client Trust Accounts

How to Set Up Your Client Trust Accounts×Print PDF version Of This HOW TO GUIDE. Introduction The Texas Equal Access to Justice Program is designed to provide funds to be used for indigent legal services. As a result, the IOLTA (Interest on Lawyers’ Trust Accounts) was implemented. IOLTA provides that attorneys must deposit all client funds, which are nominal in amount or reasonably anticipated to be held for a short period of time, into a single interest bearing account. The bank, or other financial institution where the account is maintained, sends the earned interest directly to The Texas Equal Access to Justice Foundation. The Foundation distributes the funds to legal service providers around the State who are providing legal services to the indigent people of Texas. Each licensed attorney, if handling client funds, is required to set up a separate IOLTA trust account. While it is permissible to use one IOLTA account for all clients, it is necessary to keep accurate and detailed records on transactions for each client. A separate interest bearing non-IOLTA trust account must be established for client funds to be held for a longer period of time, which are expected to earn interest in excess of …

maintaining - Texas Bar Practice

Client Surveys

Client Surveys×Print PDF version Of This HOW TO GUIDE. By Matthew E. EilersDo you know what clients think of your firm? Are you so preoccupied with your ever-present next hearing or meeting that you fail to take the time and find out? Or maybe you would rather not know as long as the clients pay their bills and keep the money wheel turning. Knowing how your clients perceive your law practice is essential information that can enhance the quality of your legal service and limit your firm’s exposure to malpractice liability. Reasons for Conducting Client Surveys Conducting regular client surveys is an effective way of obtaining this valuable legal intelligence. Learning your clients’ opinions regarding the performance of your firm serves several objectives: Getting out of your bubble. If you are too consumed by the minutiae of work, your perception of the quality of your services may be vastly different from the client’s. A client survey lets you see the view from another angle. Understanding client needs and concerns. Likewise, a client may identify specific issues or worries in a survey that she cannot communicate openly. Some clients may prefer to offer criticism indirectly in the context of a questionnaire, …

Retention and Destruction of Client Files

June 23, 2020Retention and Destruction of Client FilesShare this PostRetention and Destruction of Client Files Unfortunately, there is no one specific rule in Texas regarding the requirements for retention and destruction of client files. Texas Disciplinary Rules of Professional Conduct However, Texas Disciplinary Rules of Professional Conduct give us some guidance: TDRPC 1.05 requires that confidential information of current and former clients not be disclosed outside the law firm except in specific, narrowly defined circumstances set forth in Rule 1.05. TDRPC 1.09 and 1.10 provide that a lawyer may not act adversely to a former client on a matter for which the lawyer provided legal services. TDRPC Rule 1.15(d) of the Texas Disciplinary Rules of Professional Conduct states: (d) Upon termination of representation, a lawyer shall take steps to the extent reasonably practicable to protect a client’s interest, such as giving reasonable notice to the client, allowing time for employment of other counsel, surrendering papers and property to which the client is entitled and refunding any advance payment of fee that has not been earned. The lawyer may retain papers relating to the client to the extent permitted by law only if such retention will not prejudice the client in the subject matter of …

Cloud Computing for Lawyers

June 22, 2020Cloud Computing for LawyersShare this PostWhat is cloud computing? Cloud computing is a term used to describe off-site storage or software as a service that utilizes Internet connectivity to access its benefits. In other words, instead of being stored on a local computer or server, data is stored on a remote server. Why does it matter? The cloud is significant to attorneys because it provides inexpensive storage, networking, and collaborative capabilities as well as an off-site backup for your files. Instead of buying an expensive server and having to install LAN,1 you can simply share files through a service called “Dropbox.” Dropbox is a program that stores your files off-site and immediately uploads when you save it to the file. If you have Dropbox installed on your other computers and mobile devices, it makes the changes on those devices as well. In 2013, it was free for the first 2 GB of storage, and $100 per year for 100 GB. I have been using Dropbox for all of my files, and I have only used 32 GB to date. This is inexpensive insurance to safeguard your files and make them accessible wherever you are. If any of you have had …

Paperless Office for Lawyers

June 22, 2020Paperless Office for LawyersShare this PostThe paperless office is getting more press now than ever, and lawyers should consider this as an option for practice management. There are several reasons to go paperless: It can save you money. You won’t need file cabinets, which saves you space. You won’t use reams of paper or toner, which directly affects your overhead. I replace my toner every three years or so. It is easy to locate documents and files quickly All Texas courts will require e-filing by July 1, 2016, so everything will need to be digital anyway. Filing is easily done on your computer when you receive a document, so there are not piles of paper cluttering your desk. You are not paying an assistant to file. There are no storage costs when a case is concluded. If you use Dropbox1 or other cloud storage services, you can access your documents from anywhere with an Internet connection and a computer or mobile device. And when you use Dropbox, if disaster strikes and your office burns down or floods, your files are still safe. There is a story of an attorney in Alabama whose office was broken into and her computer and …

planning - Texas Bar Practice

Creating a Disaster Readiness Plan

Creating a Disaster Readiness Plan×Print PDF version Of This HOW TO GUIDE. Creating a Disaster Readiness Plan There are a number of ways to go about creating your plan. My advice to you is pretty simple—find one that appeals to you and then use it. But unless you borrow someone else’s plan, or hire an expert to create one for you, you will be making your own. In the coming pages, I’m going to outline a process on how to make your own disaster plan. Playing the “What if” Game Grab a pen and two pads of paper. If you’re doing this by yourself, find a quiet time and place in your office to begin the process. If you’re doing it as part of a team, make sure the team is focused and without distractions for the next hour or so. By following the steps listed below, you should find that your efforts will yield a quite workable disaster plan for your office. At the top of one of the notepads, write the word “Procedures.” On the other notepad, write the word “Stuff.” On the “Procedures” notepad, list all the possible things that could go wrong in your office. For …