Compensation – Is fair the right standard?

A writer, former managing partner, suggests various formulae for determining compensation among partners and especially managing partners. He concludes by suggesting that it’s not important what formula is used so long as all involved perceive that the process of determining that number is fair.

And, he discusses the old bromide that people respond to what they’re rewarded for.

I agree, but also want to suggest that people will accept a great deal less than the top compensation as long as they like the people with whom they work … this has a far greater impact than money … While money must be competitive (it need not be on the high end), a thing called “firm culture” is first and foremost. People must like the work they do and the people with whom they work … oh, yes, and for whom they do it (work).

Just my opinion, or as Dennis Miller might say, my $.02 worth.

Categorized in: Management