A desire for transparency has become a common outcry across business and society, and with good reason: Clarity about what is done and why is an appealing concept that promotes fairness and honesty. In law firms, there is a similar desire for transparency about leadership, management decisions, firm finances, strategy, and partner compensation.
On the surface, transparency in compensation seems like a great idea. If the firm is doing a good job setting compensation, shouldn’t it be easy to understand why every partner is paid what they are paid? Oddly enough, experience shows the answer is no. But why?
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