Reply to Help explain compensation for new law firm partners?

Forum Index » Jobs and Careers

Reply to "Help explain compensation for new law firm partners?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]I assume the 305 salary was before bonus, and that he's now equity partner.  If he's non-equity he presumably will just be salaried with a bonus, just like associates are.

You won't know his total compensation until the end of the year (since it's essentially a percent of profits he receives) and though this number might be large (hopefully at least a bit larger than his current salary + bonus, to start), you must subtract from it benefits (he's now the employer and the employee), taxes (way more taxes than a salaried employee, often paid in many many jurisdictions), and capital contribution (this works differently at every firm).

It's very, very complicated.  My DH is the partner, and he understands it less than I do, since managing the finances is my responsibility.  And I barely understand it (although I can follow line by line when it's explained to me).  You'll need an accountant.

All I can say is: don't dramatically increase your spending.  And I hope you have some savings to give you a cushion during the transition.  As long as you don't go out and buy a new car or house or something, you'll be fine, but there's a period of uncertainty.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics