Three-Year Profits up 35%; Revenue up 30%; Revenue per Lawyer up 20%
Firm Credits 2015 Move to Collaboration-Oriented Compensation Model for Consecutive Increases
Mintz has announced its third consecutive year of record financial growth. In the past year, the firm saw gross revenue grow to $403 million, revenue per lawyer rise to $895,000 and equity partner profits increase by 13 percent. The firm’s three-year profits and three-year revenue are up 35 and 30 percent, respectively, with three-year revenue per lawyer up 20 percent – percentage increases well outside current Big Law norms.
The firm credits this impressive growth, in large measure, to a shift in its compensation structure, initiated at the beginning of the 2015 fiscal year, that has resulted in greater collaboration and expanded client relationships.
“Our goal wasn’t simply to change our model, it was to change our mindset,” said Bob Bodian, Managing Member of Mintz Levin, who, along with the firm’s Division Heads and Policy Committee, conceived and implemented the new compensation structure. “We wanted to shift the focus from ‘how much credit do we each get’ to ‘how can we maximize the benefit to our clients, and, in turn, the overall revenue generation and profitability of the firm.
“Under our new structure, there is greater incentive to deepen relationships with clients, to become more entrenched in their businesses, and to add more value – all of which are gateways to long-term success and now have produced three consecutive years of record growth,” he added.
Mintz Levin’s compensation structure makes it impossible for a single attorney to receive 100 percent production credit for new business generation. Instead, guidelines specify that the attorney who “gets the call” is eligible for up to 75 percent of the initial production credit – continuing to place a high value on the significant effort that goes into developing referral networks and client relationships. However, to encourage team efforts and ensure there is no disincentive for bringing the right attorneys to participate in pitches, 25 percent of the initial production credit is either shared with a colleague who helps secure the business or is reserved for the firm when only one attorney receives the initial credit. In addition, because the success of the firm also depends on maintaining and expanding existing client relationships, production credit is allocated for new matters when appropriate – a particularly rare allocation among large law firms.
According to Bodian, while the overhaul was met with some initial skepticism and reluctance, it took little time for partners to see near universal appreciation of the new model. “Most everyone is making more money under the new system and clients are being exceptionally well-served,” he added. “We’re also seeing lateral partners express enthusiasm for the system. It’s become a real selling point for the firm.”
For more information about Mintz Levin, please visit www.mintz.com.