Comments for Cotterman on Compensation http://blog.altmanweil.com Lawyer compensation and law firm finance Wed, 10 Mar 2010 00:48:49 +0000 http://wordpress.org/?v=2.2.1 Comment on Commentary on Big Four (CPAs) Staffing Challenges by JOANNE http://blog.altmanweil.com/2009/04/09/commentary-on-big-four-cpas-staffing-challenges/#comment-430 JOANNE Mon, 04 May 2009 03:06:08 +0000 http://blog.altmanweil.com/2009/04/09/commentary-on-big-four-cpas-staffing-challenges/#comment-430 Perfectly stated!!! Perfectly stated!!!

]]> Comment on Commentary on Big Four (CPAs) Staffing Challenges by Francine McKenna http://blog.altmanweil.com/2009/04/09/commentary-on-big-four-cpas-staffing-challenges/#comment-410 Francine McKenna Thu, 09 Apr 2009 14:55:40 +0000 http://blog.altmanweil.com/2009/04/09/commentary-on-big-four-cpas-staffing-challenges/#comment-410 Hi Jim, Thanks for the link. I think we have similar interests! :) fm Hi Jim,

Thanks for the link. I think we have similar interests! :) fm

]]> Comment on Some Thoughts on Realization by Christopher http://blog.altmanweil.com/2008/09/29/some-thoughts-on-realization/#comment-337 Christopher Tue, 28 Oct 2008 20:59:59 +0000 http://blog.altmanweil.com/2008/09/29/some-thoughts-on-realization/#comment-337 Although the economic analysis of this article is sound, I've found that the most difficult hurdle for increasing realization exists between the billing attorney and the client. It's easy to make a well-supported argument for reducing receivables and WIP, but it's an incredible feat to encourage an attorney to address the firm's financial expectations to the client. I've found that tenured attorneys are reluctant to discuss financial concerns with clients or even allow access to the client by responsible support staff. As a follow-up to this article, I would like to see a discussion of providing attorney incentive to talk to his client about outstanding accounts or billing frequency, and also tools the attorney may use to minimize the risk of losing a client over late invoices. Overall, however, I enjoyed this matter-of-fact discussion of realization. It should be required reading for any associate looking to climb into partnership ranks. Although the economic analysis of this article is sound, I’ve found that the most difficult hurdle for increasing realization exists between the billing attorney and the client. It’s easy to make a well-supported argument for reducing receivables and WIP, but it’s an incredible feat to encourage an attorney to address the firm’s financial expectations to the client. I’ve found that tenured attorneys are reluctant to discuss financial concerns with clients or even allow access to the client by responsible support staff. As a follow-up to this article, I would like to see a discussion of providing attorney incentive to talk to his client about outstanding accounts or billing frequency, and also tools the attorney may use to minimize the risk of losing a client over late invoices.

Overall, however, I enjoyed this matter-of-fact discussion of realization. It should be required reading for any associate looking to climb into partnership ranks.

]]> Comment on Some Thoughts on Realization by Timothy B. Corcoran http://blog.altmanweil.com/2008/09/29/some-thoughts-on-realization/#comment-329 Timothy B. Corcoran Wed, 01 Oct 2008 19:14:44 +0000 http://blog.altmanweil.com/2008/09/29/some-thoughts-on-realization/#comment-329 This is a helpful commentary, Jim. In my experience, an underlying factor in each of the questions is the lack of financial analysis available to make informed decisions, and even when decision-support data are available there are rarely guiding principles in use across partnerships that ensure consistent actions. Those firms that track and study, for example, discounts applied at time entry and billing will develop a more solid understanding of the costs to deliver legal services and can use this aggregate data to implement a more consistent discounting scheme. Absent this, each timekeeper or billing partner acts in isolation and this can lead to well-intentioned but misguided and dilutive financial decisions whose impact is unknowingly absorbed and subsidized by the partnership. But of all the helpful comments above, I think the most impactful area of emphasis is speed. Faster timekeeper entries lead to more timely invoices, and more timely invoices avoid client confusion over vague entries from the distant past. Clients that pay slowly deserve a phone call, and client contact of any sort is an opportunity to cherish, rather than a chore to avoid. This is a helpful commentary, Jim. In my experience, an underlying factor in each of the questions is the lack of financial analysis available to make informed decisions, and even when decision-support data are available there are rarely guiding principles in use across partnerships that ensure consistent actions. Those firms that track and study, for example, discounts applied at time entry and billing will develop a more solid understanding of the costs to deliver legal services and can use this aggregate data to implement a more consistent discounting scheme. Absent this, each timekeeper or billing partner acts in isolation and this can lead to well-intentioned but misguided and dilutive financial decisions whose impact is unknowingly absorbed and subsidized by the partnership. But of all the helpful comments above, I think the most impactful area of emphasis is speed. Faster timekeeper entries lead to more timely invoices, and more timely invoices avoid client confusion over vague entries from the distant past. Clients that pay slowly deserve a phone call, and client contact of any sort is an opportunity to cherish, rather than a chore to avoid.

]]> Comment on Compensation for the New Partner by August Aquila http://blog.altmanweil.com/2008/01/27/compensation-for-the-new-partner/#comment-88 August Aquila Tue, 12 Feb 2008 21:50:59 +0000 http://blog.altmanweil.com/2008/01/27/compensation-for-the-new-partner/#comment-88 <p>Jim, Really enjoy your insights into partner compensation. You always seem to get to the point by asking the right questions.</p> <p>August Aquilap> Jim, Really enjoy your insights into partner compensation. You always seem to get to the point by asking the right questions.

August Aquilap>

]]> Comment on How Much Debt? by Debt Management for Law Firms | MorePartnerIncome.com http://blog.altmanweil.com/2008/02/08/how-much-debt/#comment-86 Debt Management for Law Firms | MorePartnerIncome.com Mon, 11 Feb 2008 06:01:00 +0000 http://blog.altmanweil.com/2008/02/08/how-much-debt/#comment-86 [...] Cotterman, in a recent post, writes on how much debt a law firm should [...] […] Cotterman, in a recent post, writes on how much debt a law firm should […]

]]> Comment on Retirement - At What Age? by John http://blog.altmanweil.com/2007/11/02/retirement-at-what-age/#comment-81 John Fri, 08 Feb 2008 13:11:34 +0000 http://blog.altmanweil.com/2007/11/02/retirement-at-what-age/#comment-81 Dear Mr. Cotterman, What about well-trained, thoroughly experienced, efficient and remarkably useful 50+ lawyers who have no thought of "retiring" ... who intend to remain in the practice of law for decades longer? What about the gross, obvious and nearly universal age discrimination against these men and women? This is not just a matter of "compensation", this is a matter of all law firms (not just the largest) advertising for "second year" attorneys or attorneys with "3-4 years of experience in ..." as a "qualification" so that they can invidiously discriminate against attorney who could, and would willingly, do just as well (probably better), but who have eclipsed the magic age where they are (irrationally and prejudically) thought to be of no more use. You cannot thoroughly talk about "compensation" without addressing the wholesale invidious discrimination which is being visited against all "senior" lawyers. The recent Justice Department multi-million dollar settlements are just the tip of the iceberg which represents a wholesale undermining of one of the fundamental pillars of the American legal system ... experience counts. But, now, apparently, it doesn't. What counts is youth and appearance. Dear Mr. Cotterman,

What about well-trained, thoroughly experienced, efficient and remarkably useful 50+ lawyers who have no thought of “retiring” … who intend to remain in the practice of law for decades longer? What about the gross, obvious and nearly universal age discrimination against these men and women? This is not just a matter of “compensation”, this is a matter of all law firms (not just the largest) advertising for “second year” attorneys or attorneys with “3-4 years of experience in …” as a “qualification” so that they can invidiously discriminate against attorney who could, and would willingly, do just as well (probably better), but who have eclipsed the magic age where they are (irrationally and prejudically) thought to be of no more use.

You cannot thoroughly talk about “compensation” without addressing the wholesale invidious discrimination which is being visited against all “senior” lawyers. The recent Justice Department multi-million dollar settlements are just the tip of the iceberg which represents a wholesale undermining of one of the fundamental pillars of the American legal system … experience counts. But, now, apparently, it doesn’t. What counts is youth and appearance.

]]> Comment on Balance Sheet Metrics by Year End Distributions to Law Firm Partners | MorePartnerIncome.com http://blog.altmanweil.com/2007/12/13/balance-sheet-metrics/#comment-79 Year End Distributions to Law Firm Partners | MorePartnerIncome.com Thu, 31 Jan 2008 16:31:05 +0000 http://blog.altmanweil.com/2007/12/13/balance-sheet-metrics/#comment-79 [...] checks yet you might want to read two of Jim Cotterman’s recent blog posts. See his post Balance Sheet Metrics and his post Partners Contribute Hidden Capital. Cotterman is big on new partner buy- ins and [...] […] checks yet you might want to read two of Jim Cotterman’s recent blog posts. See his post Balance Sheet Metrics and his post Partners Contribute Hidden Capital. Cotterman is big on new partner buy- ins and […]

]]> Comment on Welcome! by Ashley Balls http://blog.altmanweil.com/2007/10/16/welcome/#comment-43 Ashley Balls Wed, 31 Oct 2007 00:30:28 +0000 http://blog.altmanweil.com/2007/10/16/welcome/#comment-43 Jim This is a very useful and insightful blog. I would be interested to learn if you have a view on why EU firms - particularly in England - seem to be encouraging thier senior partners to retire. These partners are typically aged 55-60 and carry what can only be described as thier firm's institutional memory and wisdom. If they were leaving to join clients in some governance capacity - it would be understandable but many do not. The trans Atlantic comparison is stark. In New York and other US metropolitan centres grey hair is still acceptable and respected. When discussing this with partners of leading London firms earlier this year the common denominator seems to be the naked aggression of young partners and it is not a good look. Ashley Auckland, New Zealand & UK Jim
This is a very useful and insightful blog.
I would be interested to learn if you have a view on why EU firms - particularly in England - seem to be encouraging thier senior partners to retire. These partners are typically aged 55-60 and carry what can only be described as thier firm’s institutional memory and wisdom. If they were leaving to join clients in some governance capacity - it would be understandable but many do not. The trans Atlantic comparison is stark. In New York and other US metropolitan centres grey hair is still acceptable and respected. When discussing this with partners of leading London firms earlier this year the common denominator seems to be the naked aggression of young partners and it is not a good look.
Ashley
Auckland, New Zealand & UK

]]> Comment on Income Spread by John http://blog.altmanweil.com/2007/10/28/income-spread/#comment-42 John Tue, 30 Oct 2007 18:05:32 +0000 http://blog.altmanweil.com/2007/10/28/income-spread/#comment-42 The problem with compensation spread lies in how it is used. In my view, it is an interesting statistic that results from calculations using already set compensation figures. I certainly don't have the experience level of AW, but, I find it hard to believe there can be any circumstance in which it is appropriate to use spread as a target when determining compensation, unless of course a firm is trying to reduce the number of partners. The problem with compensation spread lies in how it is used. In my view, it is an interesting statistic that results from calculations using already set compensation figures. I certainly don’t have the experience level of AW, but, I find it hard to believe there can be any circumstance in which it is appropriate to use spread as a target when determining compensation, unless of course a firm is trying to reduce the number of partners.

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