As the first official managing partner of Mattos Filho, a prestigious Brazilian law firm, Roberto Quiroga Mosquera decides to reform the firm’s compensation structure from an Eat What You Kill system based on complicated formulas to a more subjective approach, a move that is unprecedented among major Brazilian law firms. In convincing his partners to agree to these changes, he must persuade top rainmakers to forgo origination fees that comprised a large amount of their income and make the case that a new method would better align the incentives of partners at all levels. The case describes Quiroga’s approach to changing a key system in the firm as well as the challenges of realigning compensation to support the growth of law firms in emerging economies.
The case asks participants to consider the advantages and disadvantages of different approaches to equity partner compensation in law firms. It also provides the opportunity to explore the dynamics of change management in a professional service firm context.
partner compensation systems, eat-what-you-kill compensation model, change management, negotiation and partnerships
Geographic: São Paulo, New York
Industry: Law Firm
Event Year Begin: 2000s
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