1. No New York law firm matches Adam Leitman Bailey P.C.’s compensation model. Hour by hour we pay more than any other law firm.
2. Every attorney receives at least one-third of the amount billed and collected.
3. If the attorney brings in a client, the attorney receives more than one-third of the amount billed.
4. Every firm attorney knows exactly how much they are being paid without having to wait for their quarterly report to the dollar each day.
5. No attorney has ever asked for a raise.
6. No attorney is required to bring in any business.
7. We have had associates who have made over a million dollars a year.
8. We traditionally have the lowest turnover rate of any firm. Period.
How Adam Leitman Bailey, P.C. Pays More
Although everyone receives a paycheck each pay period, Adam Leitman Bailey, P.C. is the only law firm in New York City that provides an individualized revenue sharing program. Our program allows every attorney at our firm – partners and associates alike – to have the opportunity to be placed among the highest earning attorneys in New York. Rather than by seniority our attorneys’ pay is determined by their diligence and work ethic.
In addition to the revenue sharing program, our attorneys are able to make supplementary revenue based on the amount of business they bring in. When an attorney at any level brings in new business they will receive a percentage of that new business, on top of the compensation revenue program described below.
Here’s how it works: Every attorney at the firm receives one-third of their collected billable time and any attorney who brings in business will receive a higher amount to be negotiated.
The Revenue Sharing Plan offers a competitive compensation system to both all attorneys. Every attorney receives a third of the hours billed by that attorney that are collected by the firm (in addition or not including monies owed to the attorney for introducing the client to the firm.)
Assuming one-third of the cash revenue on billed time is greater than the amount of compensation paid, the difference will be paid to the attorney as a bonus. No attorney at the firm is required to bring in business. Neither is there a requirement to bring in business to make partner at the firm. An attorney’s minimum salary is not disturbed by this bonus opportunity.
Scenario 1: Assuming a $700/hr billing rate, a senior attorney billing 2,500 hours per year would bill $1.75 million. Assuming a collections rate of 94% (our rate in 2018), the firm would collect $1.645 million ($1.75 million x .94). The attorney would earn one-third of this amount, total compensation of $548,333.
Scenario 2: Assuming the same $700/hr billing rate x 2,000 billed hours per year, total billings would be $1.4 million. Assuming a collections rate of 94%, the firm would collect $1.316 million ($1.4 million x .94). The attorney would earn one-third of this amount, total compensation of $438,667.
Scenario 3: Assuming a $525/hr billing rate for a junior attorney billing 2,000 hours per year, the amount billed would be $1.05 million. Assuming a collections rate of 94%, the firm would collect $987k ($1.05 million x .94). The attorney would earn one-third of this amount, total compensation of $329,000.
These examples demonstrate how our revenue sharing program results in our attorneys receiving higher compensation than most attorneys at other New York law firms, without needing to have a book of business.
For those attorneys who do bring in business the amount of money they receive is increased by the amount of business brought in.