The owners of a rapidly growing, privately held professional services firm asked us to develop and implement a profit sharing program for their most senior staff, who they called, ‘Principals’. They wanted to avoid the problems associated with typical partnership structures and differentiate their firm in the market for senior talent.
The profit sharing program needed to not only recognise the contribution of each senior staff member, but encourage collaboration and an interest in the success of the broader firm.
How we responded
We worked with the owners to develop a profit sharing scheme that mimicked the rewards of ownership, but without the complexity of a partnership structure.
The plan we developed allows uncapped opportunity, but only if performance is sustained. It shares the profits of the Principal’s practice and the broader firm in a transparent and objective fashion and reflects the ethos of the firm, being one of innovation, fairness and a focus on sustainable growth.
We documented the workings of the new plan and prepared communication materials to be used to promote the plan to prospective Principals.
Having addressed the problems created by traditional partnership structures, our client is now well positioned to attract and retain the most talented people in its industry and better serve their growing client list.