---

name: efirm-finance-partner-comp-allocator
description: Use when a law-firm administrator or managing partner needs to model, allocate, or review partner compensation for a period. Covers the full input set (billable hours, origination credit, working credit, supervision credit, firm contributions), all major allocation models (lockstep, eat-what-you-kill, hybrid), and outputs a structured recommendation with sensitivity analysis and benchmarks. Designed for multi-jurisdiction law firms including MENA practices.
license: MIT
metadata:
id: efirm-finance.partner-comp-allocator
category: efirm-finance
jurisdictions: [multi]
priority: P2
intent: [comp, partner, compensation, allocation, PEP, origination]
related:
- efirm-finance-realization-rate-tracker
- efirm-finance-utilization-dashboard
- efirm-finance-wip-aging-report
- efirm-finance-collection-rate-tracker
source: Louis — HAQQ Legal AI (github.com/sboghossian/mini-claude-for-legal)
version: "1.0"

Partner Compensation Allocator

When to use this

Use this skill whenever:

• A managing partner or compensation committee is preparing annual or periodic partner draws.
• A firm wants to model compensation under a new allocation policy before implementing it.
• A partner disputes their allocated credit and a structured breakdown is needed.
• The firm is benchmarking total compensation against peer PEP (Profits per Equity Partner) figures.
• A newly promoted partner's first-year comp structure needs to be designed.

Do not use this as the sole basis for compensation decisions — it is a structured recommendation tool. Final decisions require human judgment and governance review.

Required inputs

Input	Why it matters	Default if missing
Partner name / ID	Links output to the individual	Required; no default
Period (e.g., Q1 2025 or FY 2024)	All metrics must share the same denominator	Current fiscal year
Billable hours worked (own)	Direct revenue generation baseline	Pull from time records
Standard hourly rate	Converts hours to revenue value	Firm rate card
Allocated model	Determines weighting formula	Hybrid 50/30/20
Originating client list	Credits the partner who brought in the client	Matter origination register
Working matter list	Credits active management of matters	Matter responsibility register
Supervising timekeeper hours	Credits oversight of associates	Time records by supervisor
Firm contribution activities	Training, BD, recruiting, committees	Self-report + HR records

Optional inputs

• Collected realization rate per partner — adjusts comp for write-downs attributable to the partner's billing decisions; pairs with [[efirm-finance-realization-rate-tracker]].
• WIP at period end — factor pending billing into projected comp for accrual-basis firms.
• Peer benchmarks — external PEP data from surveys (Am Law 100, LACCA, LegalWeek) for context.
• Lockstep seniority tier — required if model = lockstep or hybrid.
• Non-equity partner adjustments — separate pool and formula for income/salaried partners.

Allocation models

1. Lockstep (seniority-equal)

All equity partners at the same seniority tier receive equal draws from the profit pool. No explicit origination or working credit.

• Best for: Long-established firms with deep institutional client relationships, or where teamwork culture is paramount.
• Risk: Reduces incentives for business development; younger partners may defect.
• Calculation: Total profit pool ÷ total lockstep units × partner's units.

2. Eat-What-You-Kill (originator-heavy)

Compensation driven almost entirely by origination credit — the partner who brought in the client keeps the lion's share.

• Best for: Lateral-heavy, entrepreneurial practices.
• Risk: Hoarding behavior; refusal to collaborate; client ownership disputes on departure.
• Typical weighting: 70–90% origination credit, 10–30% working credit, minimal firm contribution credit.

3. Hybrid (most common — recommended default)

Default formula: 50% originating + 30% working + 20% firm-contributions.

Sub-components:

Credit type	Calculation
Originating credit	Revenue collected on matters the partner originated × 50% weighting
Working credit	Revenue worked on matters the partner was responsible attorney × 30% weighting
Supervision credit	Associate hours billed under partner supervision × blended rate × supervision factor (typically 0.15–0.25)
Firm contribution	Scored on 1–5 scale across: training sessions, BD pitches, recruiting hires, committee participation × 20% weighting

Output format

The skill should produce a structured report for each partner covering:

PARTNER COMPENSATION RECOMMENDATION — [Partner Name] — [Period]

1. INPUT SUMMARY
   Billable hours (own):          [X hrs at /hr = ]
   Originating revenue collected: 
   Working revenue collected:     
   Supervision hours:             C hrs
   Firm contribution score:       D/5

2. ALLOCATION (Hybrid 50/30/20)
   Originating credit:  50% ×  = 
   Working credit:      30% ×  = 
   Firm contribution:   20% × (D/5) × [pool share] = 
   Supervision bonus:   C × rate × factor = 
   ─────────────────────────────────────
   TOTAL COMP RECOMMENDATION:     

3. BENCHMARKS
   Firm average partner comp (period): 
   PEP (firm-wide):                    
   External benchmark (survey):         range

4. SENSITIVITY ANALYSIS
   If origination weight ↑ to 60%: comp = 
   If working weight ↑ to 40%:     comp = 
   If firm contribution dropped:    comp = 

5. FLAGS
   [Any anomalies: realization below avg, origination credit dispute, etc.]

Jurisdictional notes

Jurisdiction	Specific considerations
US (Am Law)	PEP is the primary external benchmark. Lockstep largely abandoned at most firms post-1990s. Non-equity partner tier is common; distinguish equity vs. income.
UK (Magic/Silver Circle)	Modified lockstep still common; "black box" discretionary element at most firms. Salaried partner tier widely used.
MENA (GCC)	Partnership structures vary; some Gulf firms operate as sole practitioner or corporate entities under national law — formal equity partnership may not exist. Track profit distributions per ownership %. KSA firms may operate under a licensed professional company structure.
UAE onshore	UAE Federal Law on Commercial Companies governs; professional companies have specific requirements.
DIFC / ADGM	Partnerships possible under DIFC/ADGM partnership law; distributions governed by partnership agreement.
Lebanon	Bar affiliation required; partnership structures informal.
France	SCP/SEP/SELARL structures; remuneration governed partly by partnership deed and partly by CNBF (Caisse nationale des barreaux français) contributions.

Common mistakes

• Double-counting origination and working credit when one partner does both — set firm policy on split.
• Ignoring realization — a partner originating large volumes of uncollected debt should not receive full origination credit.
• Static benchmarks — PEP data from prior years is not comparable to current performance; use same-year surveys.
• No supervision credit formula — without it, senior partners avoid associate delegation, harming leverage ratio.
• Failure to document — comp decisions without a written formula invite disputes and bar complaints (in some jurisdictions, partners are entitled to see the formula under partnership law).

Related skills

• [[efirm-finance-realization-rate-tracker]]
• [[efirm-finance-utilization-dashboard]]
• [[efirm-finance-wip-aging-report]]
• [[efirm-finance-collection-rate-tracker]]
• [[efirm-matter-creation-flow]]