Limit Rainmaker Credit to Keep Other Lawyers Happy
Paying partners extra for bringing in new matters is something that virtually every U.S. law firm does. But paying them too much can be bad business.
So-called “permanent” business-generation fees, in particular, can create the wrong incentives for those who actually do the bulk of the work on the matter, year after year, writes Florence Fass, a partner in the Garden City, N.Y., law firm of Fass & Greenberg. A better option is to “sunset” origination fees to the rainmaking partner after a few years, she recommends in a New York Law Journal article reprinted by New York Lawyer (reg. req.).
Fass also suggests that rainmaking partners should be compensated for work they do to keep the clients they have brought to the firm happy. Such work includes checking in with these clients, helping to resolve any fee issues and making sure that the most appropriate attorneys are assigned to do the client’s work.
No matter what the firm’s policy is for compensating rainmakers, it should be in writing, she advises. “Even the smallest of firms should adhere to this practice. Indeed, the smaller the firm, the more likely it is for the partners to bend a little here and there, or overlook the policy ‘just this once.’ “
