The Lawyers Weekly - February 17, 2012

THE LAWYERS WEEKLY
February 17, 2012 | 21

BUSINESS
CAREERS

FINEPICS / DREAMSTIME.COM

ACE Canada® is a subsidiary of the ACE Group headed by ACE Limited (NYSE: ACE). The ACE Group is one of the world’s largest providers of commercial property and casualty insurance and reinsurance, with $83 billion in assets and more than $19 billion of gross written premium in 2010.

Vice President & General Counsel

The purpose of this position is to provide legal, regulatory and compliance counsel to ACE Canada’s business divisions and executives, both directly and through assigned legal staff. Responsible for managing the legal and compliance functions and staff and to identify, monitor and provide legal counsel relating to regulatory and legal developments. The incumbent will keep management and compliance informed of relevant new and amended laws and regulations, through regular counsel, reports, publications and presentations and conduct or manage legal, regulatory and compliance research on issues. Additional responsibilities include review of existing and creation of new company policies and procedures to ensure compliance with laws, rules and regulations and to minimize liability; hiring and legal staff development. Requirements include: excellent legal research and writing skills; excellent communication and interpersonal skills, with a track record of building relationships and effective partnerships across constituencies; strong leadership and management skills; and a law degree and bar admittance with 10 or more years of legal experience in the field of property and casualty insurance, reflecting a record of accomplishment. To view the posting in its entirety, please visit our website at www.ace-ina-canada.com. Please submit your resume to: Dayle Hawkins; Fax: (416) 368-9825; Email: dayle.hawkins@acegroup.com. We thank all applicants for their interest, however, only those considered will be contacted.

Firms struggle to find
right bonus structure

Bonus season is coming, and it seems no matter how much time firms invest in trying to devise the best structure to reward the efforts of their lawyers, someone is always left complaining about how their system is lacking. Why is it so difficult to get bonus structures right? Is your competitor’s structure really that much better than yours? How do you know if you’re getting it right?

As a general rule, the test of your bonus structure — indeed, your overall compensation system — is whether it results in keeping the lawyers you want.

The typical bonus structures in
the market fall into three categories.

broader contribution to the firm beyond pure (typically financial) metrics.

The challenge for discretionary models is frequently the lack of transparency as to how individual bonuses are arrived at. More to the point, many associates cynically see discretionary models as code for “no bonus,” which can easily happen— particularly in a down market.

The key to establishing a functioning discretionary model is to set out the full range of considered criteria, explain why they are valued, and create as much transparency as possible. Moreover, it is important to be honest when setting out the range for eligible bonuses. That means being able to show examples of those who achieved at the various levels within the structure, to help give others a sense of matching achievement with outcome.

WARREN
SMITH
THE HEADHUNTER

Discretionary model

A full discretionary bonus structure is one in which no objective, measured elements determine how bonuses are paid out by the firm. Firms using a discretionary model typically provide some guidelines as to what factors are taken into consideration but, ultimately, the decision is subjective and typically made by the partners.

When done properly, fully discretionary bonus structures afford the firm the ability to measure a broader range of categories beyond hours recorded or fees collected, recognizing contributions that have a net positive impact on the firm. Bar Association involvement, teaching, mentorship, community stewardship, or other non-financial contributions are more readily recognized under such models, ideally establishing a reward system that encourages lawyers to adopt an approach to practice that reflects a

Metric driven model

A pure metric bonus structure is one in which bonuses are paid out based on a strict formula, most frequently associated with billable hours and/or fees collected. Under such models, lawyers have the advantage of knowing exactly what their reward will be for a given level of performance. Firms typically provide a grid or payout chart, based on various thresholds or performance levels, with associated payouts at each level.

Metric-based bonus structures have the advantage of predictability: Those operating under such models have great certainty as to how their compensation will be affected based on specified performance

See Bonus Page 22

Are you looking to join a growing rm? If so, Zarek Taylor Grossman Hanrahan is the place for you.

From our 6 lawyer inception in 1997, we have grown to 34 lawyers in 2012. We are an insurance defence boutique law rm, located in Downtown Toronto, with excellence in providing defence of tort, accident benets, property and general insurance litigation matters.

We are currently looking for two associates to join our growing rm.

What we are looking for:

• You have 2+ years of prior experience as an insurance defence or plaintiff lawyer; experience with accident benets, bodily injury, property and/or comprehensive general liability will be considered an asset.