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The first and only comprehensive handbook on Partner Remuneration

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Current and Future Partner Remuneration Systems

The comprehensive handbook covers partner compensation systems, managing partner contribution and efficient decision-making.

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About the book

How partners share profits is fundamental to driving strategy and providing competitive compensation for the firm’s best partners – all while supporting the firm’s underlying ethos and culture.

The firm’s profit sharing model is central to its partnership ethos and culture. In this comprehensive handbook Michael Roch and Ray D’ Cruz provide guidance for senior and managing partners, partnership boards, remuneration committees and all other involvement in the partner compensation process on designing effective profit sharing systems, reaching fair reward decisions efficiently and implementing contribution management processes that motivate partners.

Looking beyond the numbers, the authors balance the big picture with the detialed how-to for any professional partnership, irrespective of geography, size and maturity.

Filled with practical insights, this book draws on principles of partnership, motivation and incentives in human capital management, and executive compensation in closely held businesses.

Part I. Introduction
  • Trends shaping partner reward
  • The three partner remuneration elements in context
    • Part II. Reward structures in professional partnerships
  • The seven primary partner reward systems
  • Formula systems: cost sharing, ‘eat what you kill’ and fixed allocation
  • Merit systems: financially driven versus holistic meritocracies
  • Lockstep systems and their variations
  • A partner’s profit-sharing waterfall: drawings, bonuses and distributions
  • Corporations operating as partnerships, internal markets and talent ecosystems
    • Part III. Managing partner contribution
  • The future of partner contribution management
  • Motivating achievement-orientated partners
  • Using partner contribution frameworks to align partner contribution with firm strategy
  • Aligning personal objectives with partner contribution expectations
  • Using measures, metrics and KPIs
  • Partner accountability through ongoing conversations and informal check-ins
  • Self-assessments, ratings and other design considerations for formal partner reviews
  • Conducting effective partner review conversations
  • Addressing underperformance
  • Using technology for better partner contribution management
  • Analytics: using quantitative and qualitative data for evidence-based decisions
  • The role of HR and business services in partner contribution management
    • Part IV. Partner reward governance and decision making
  • Key elements of effective reward governance
  • Remuneration committee basics: when to have one, its remit and its members
  • Managing to an annual calendar
  • Reward round preparation, heuristics and decision aids
  • Reaching reward conclusions while avoiding biases
  • Transparency in reward communications: nuances of open and closed compensation system
  • Appeals: benefits, drawbacks and process considerations
    • Part V. Special issues
  • Collaboration among partners
  • Rewarding partners in management roles
  • Diversity, equity and inclusion
  • Partner reward in international partnerships
  • Engaging partners in remuneration policy changes
  • Well-being and mental health
    • Part VI. The way ahead
  • Ten principles for partner remuneration systems in ambitious professional services firms
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    Michael Roch

    Michael Roch is the founder of MHPR Advisors.

    Michael Roch guides partnership boards, managing partners and senior leaders globally on architecting strong partnerships and on leading their organizations to competitive growth.

    Michael has advised dozens of organizations become market leaders in relation to their

    • Global partnering strategy
    • Partner profit sharing, compensation and reward
    • Partnership governance, leadership and execution

    Michael's clients range from multinational partnerships and alliances to mid-sized firms to start-ups across the globe; most operate in the professional services, technology and related sectors. All of them value how Michael’s partnerships advice is infused by his hands-on experience as an entrepreneur and leader of partnerships - and how he brings together a unique combination of in-depth experience around partnership economics, governance, organizational design, motivation and reward to help clients drive growth.

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    Ray D’Cruz

    Ray D’Cruz is the co-author of The Partner Remuneration Handbook and CEO of Performance Leader, a consulting and software business that helps professional services firms harness the creativity and intelligence of their partners and employees.

    ‍Ray helps organizations solve complex problems in areas such as performance, collaboration and feedback through a flexible approach and deep sector knowledge.

    Working in leading professional services firms as both a lawyer and HR leader means Ray understands the nuances of professional services and partnership structures. He has used this expert knowledge to co-create this comprehensive guide to partner remuneration in professional service firms.

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    "The Partner Remuneration Handbook is essential reading for leaders who want to align strategy, performance and reward , and light a path for future success. It is easy to read, yet full of insights. The handbook offers lots of practical advice for implementing a balanced approach to performance and reward that takes into account strategic challenges abd opportunities including smarter collaboration. "

    Dr Heidi K. Gardner

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