Friday, July 11, 2008

Incentive compensation for attorneys

Most attorneys are compensated on a cost-plus basis, which gives them an incentive to run up legal fees and billable hours. This has created an opening for an Ohio based law firm with a better way to align the incentives of attorneys with the goals of their clients. The key is an accurate measure of performance:

...success fee may be based on several factors. They include whether a corporation is able to get the case dismissed or to settle the case within a defined time period, whether the payout is less than a set amount, and whether the corporation’s insurance carrier covers the payout.

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