Management consultant Stephen Mabey has laid out what investors would expect if investing in Canadian law firms and what this would mean for partners. In his Definitely Mabey column for the Canadian Lawyer magazine, he said that one of the biggest challenges for partners in law firms would be the move in mindset from partner to shareholder  which would include acceptance of no longer being an owner. 

Salaries

He also pointed out that partners would have to be assigned salaries which would be less than their current draw. Furthermore, Mr Mabey said that partners would have to accept a bonus plan which would not guarantee more income to every partner but only those qualifying under the plan. This could take the form of warrants and options as well as cash. They would also receive part of what they previously got in cash through a combination of appreciation in the value of the shares and dividends. On the plus side, cash-tax difference would be minimized and there would be a potential upside of appreciation in the shares held, he pointed out. Source: Canadian Lawyer