Most partners are unaware of how their compensation compares to that of other firms. You know what you make, and maybe what a few close colleagues earn. But the real picture of how your compensation lines up can be a mystery, especially if you’re only familiar with the compensation model at your firm.

Firms value different contributions when it comes to paying partners, including billable hours, realization rates, and revenue generation, and those differences can have a significant impact on final compensation.

I had the opportunity to explore these topics in depth with Blane Prescott, managing shareholder of MesaFive LLC, who works with law firms worldwide on growth, strategy, and partner compensation. This conversation offers valuable insights that every ambitious partner should consider when it comes to getting paid what they’re worth.

Secret #1: The $100M generators aren’t going at it alone

You might think a $5 million book of business is significant, and it is. But the numbers at the top end might surprise you.

As Blane explained, “We’re starting to see people who are running books of business of 40 million, 60 million. I’ve got a couple of people who are over a hundred million.”

And for these high-earning rainmakers, one of the secrets to their success is that they aren’t doing it alone. A partner with $100 million in business might be managing the workloads of dozens of lawyers.

“Behind most of these big rainmakers,” shares Blane, “are these people who are extraordinary lieutenants. They may not be great at generating a client, but they’re great at managing these large teams.”

Having a team at their disposal can release a rainmaker from the daily tasks of legal work, freeing them up to focus on client relationships and growth.

Secret #2: There’s not a single “formula” that works for every firm

One of the biggest misconceptions partners have is that there’s one perfect compensation system. But there’s not! Blane broke down the five main types, but emphasized that success isn’t about the system type. Instead, it’s about finding one that recognizes what you bring to the table:

Parity systems pay all partners equally. As Blane jokes, “Parity systems work best in firms with less than two partners.” They’re rare and typically found only in very small firms.
Lockstep systems were once dominant in the U.S., where you automatically progress upward in compensation until reaching a plateau. But true lockstep has largely disappeared. Most firms that claim to have lockstep systems now include bonuses and merit components.
Formula systems use mathematical formulas to determine compensation. These were common 40 years ago, probably in at least half of all firms, but they were found to be too inflexible. “Different people bring different strengths to the firm, and you want to be able to figure out how to pay people accordingly,” Blane explained.
Subjective systems evaluate data and performance, but determine compensation without a strict formula. These systems enable firms to recognize contributions beyond just billable hours and originations, such as mentoring, recruiting, or leadership roles within the firm.
Hybrid systems combine elements from the other approaches.

Secret #3: The “one-third rule” can keep partners underpaid

The traditional wisdom is that compensation follows a simple rule: “You should get a third of your book of business.” Law firm consultants are aware that this doesn’t accurately reflect reality. Yet, many firms still cite it as a starting point, even though it oversimplifies the complex economics of their firms.

But compensation could reflect factors most partners don’t consider: overall firm profitability, work profitability, and non-billable contributions.

This explains patterns that confuse partners:

Growth, but compensation staying flat
Cross-selling opportunities getting no credit
Firms with arbitrary rules limiting annual increases regardless of performance
Origination credit going to the wrong people due to outdated lifetime allocation systems

If you’re seeing these patterns, start a conversation with leadership to clarify which factors are affecting your compensation. While you may ultimately decide to move to another firm or pursue compensation negotiations, it can help base decisions on a place of information rather than assumptions.

Secret #4: Firms are shifting how they track origination credit

There is a significant shift from client-level to matter-level origination tracking. That’s because, according to Blane, “Allocating origination at the matter level tends to be a dramatically more successful system.”

Here’s why: Lifetime origination credit—where one partner gets credit forever regardless of their ongoing relationship with the client—causes problems at many firms.

Blane explains, “If some other partner could walk away from your firm and that client would follow them, another firm’s going to pay them for that work.”

When origination is tracked at the matter level, though, it’s a different story. Instead of one partner getting permanent credit for an entire client relationship, firms can assign origination credit based on who brought in each piece of work.

For partners, this shift in focus deepens relationships with existing clients rather than solely targeting new ones. Your compensation can grow by becoming the go-to person for new matters from clients already in the firm’s portfolio.

Secret #5: The method to maximizing your book of business is unique to you

Since most compensation systems heavily reward origination, finding your business development style is critical to maximizing your earnings. The key phrase here is your, though.

“The most common characteristic of great rainmakers is that they do what fits their personality. They don’t arbitrarily copy someone else,” Blane observed.

Some partners thrive on relationship-building through events and networking, while others build substantial practices through writing or speaking. And what works well for you might be surprising. For example, Blane shared that introverts can be excellent public speakers, an activity that can elevate your profile and bring in substantial business.

Writing can also be profitable. “I’ve seen people who do the only marketing activity they pursue is writing articles,” Blane comments. “And for them, we’ve come across people who have $3, $4, $5 million worth of business just from the writing.”

The key is identifying your natural strengths and leveraging them consistently for business development.

Secret #6: Compensation spreads are growing

Differences in compensation have widened dramatically across the legal industry. Once, firms had spreads of 3:1 or 4:1 between the highest- and lowest-paid partners, but these numbers are growing significantly.

As Blane noted, we’re seeing “higher and higher levels of compensation,” with some partners now earning extraordinary amounts annually. And yes, people are earning $40 million in partner compensation, but these are rare exceptions.

What’s driving the compensation spread? During booming economic times, new people can become rainmakers, but existing rainmakers tend to “out-accelerate the growth of their book of business so that although everybody is increasing, they’re increasing faster.”

This creates a challenging reality for firms: If you don’t let your top performers pull away from the pack, they’ll leave for firms that will.

That’s why you see compensation spreads widening dramatically. Many firms would rather have extreme pay differences than lose their biggest producers.

Secret #7: Open firms aren’t what you think

Firms with open systems, where everyone knows what everyone else makes, might sound great on paper. But that information can be a source of stress and discontent.

Blane explained the phenomenon: “Have you ever been happy with your compensation? You found out what you were going to get paid and said, ‘Oh boy, that sounds great.’ And then you look and see what everybody else in the firm is going to get paid. And then you’re suddenly miserable.”

The reason? Relativity. It’s not just how much you get paid, but how much you get paid relative to someone else in the firm.

Closed systems—where you only know your compensation—tend to create “dramatically happier, most profitable and most team-oriented firms because nobody was worrying about grabbing onto origination credit,” according to Blane.

One emerging alternative is the semi-closed system, where all the data exists and partners can view it if they choose, but it’s not automatically published.

The bottom line for your career

The most successful partners understand that compensation isn’t just about individual numbers. It’s about firm profitability, work profitability, and non-billable contributions. Of course, this does depend on what your firm places value on as part of its compensation formula. But if you’re consistently growing your book and not seeing proportional compensation increases, it may be time to have a conversation with leadership.

As Blane emphasized, “It’s much easier to solve problems when they’re little problems as opposed to waiting until somebody is on the verge of walking out the door.”

The legal market has never been more competitive for top talent. Understanding how compensation works and how top rainmakers build their practices is essential for maximizing both your professional satisfaction and your compensation.

Want to explore your situation? Check out our book of business calculator to get a clearer picture of your true market value, or reach out for a confidential conversation about your career path and options.