Lets reveal how targets are set at law firms. Are they 3 times or 2 times or based on value say like 10 cr etc. Are packages of senior partners/big partners included in them or they are paid out of profit or what is the situation. I ask latter as their package is more and its difficult to earn revneue based on multiple tomes of their package.
Junior Partners at T1s usually are made to bill 3 times their salary so assuming the take home is 80l fixed component, one will have to bill close to 2.5 crores. On the other hand, Senior Partners at T1s are made to bill 3 times the team cost (in the example below it would be around 10 to 12 crores out of which they are given a cut). Bonuses would be deal dependent and on a lot of billing factors which is not a consistent pay-out so lets not get there. For example:
4 Associates: 1 crore approx
2 Senior Associates: 60 - 70 lakhs approx
1 Principal Associate: 60 - 70 lakhs approx
1 Counsel: 70 lakhs approx
1 Junior Partner: 80 lakhs approx
Senior Partner: depends***
Note: inflate the figures for folks from Trilegal and TTA.
Going by your eg, the team would have to bill about 15 Cr to get to the 3x mark. Assuming the Senior Partner takes home 1 Cr fixed
Also do tell how the bonus for partners computed/factored? Have heard that the most a non-equity partner can make is 1.5 Cr even if he makes it rain. A senior partner starts at about 1.5 to 2 and rest depends on how much he makes it rain
you are right, the tables are always against you. The above example with 4 crore as a total team cost makes the Senior bill 12 crores (lets assume 3 crores going to the Senior Partner and 4 crore being team recoverable factoring the Junior Partner - still there is an additional 4-5 crores billed by the Senior and 1.5 crore billed by the Junior Partner; where both the surplus generated ends up going to the firm and is very rarely is adjusted for bonuses). Hope this gives an idea.
Adding to this, some firms also have have fixed targets for Associates lol, its a pathetic way to live life.
4 Associates: 1 crore approx
2 Senior Associates: 60 - 70 lakhs approx
1 Principal Associate: 60 - 70 lakhs approx
1 Counsel: 70 lakhs approx
1 Junior Partner: 80 lakhs approx
Senior Partner: depends***
Note: inflate the figures for folks from Trilegal and TTA.
Going by your eg, the team would have to bill about 15 Cr to get to the 3x mark. Assuming the Senior Partner takes home 1 Cr fixed
Also do tell how the bonus for partners computed/factored? Have heard that the most a non-equity partner can make is 1.5 Cr even if he makes it rain. A senior partner starts at about 1.5 to 2 and rest depends on how much he makes it rain
Adding to this, some firms also have have fixed targets for Associates lol, its a pathetic way to live life.