What are the trends in deferred compensation packages? (Video)
November 2016 -
Deferred compensation is a really important factor when you’re making a job change as lateral partner. Undoubtedly, you have a deferred compensation slash retirement benefit where you are right now. Typically those are the average of the last three of the last five years cash compensation multiplied by a multiple. That multiple is typically now between two and two-and-a-quarter of your compensation. So if you’re earning 500, and your firm or the new firm has a two time multiple, your deferred comp would be $1 million, typically paid over seven to ten years. It’s a big negotiating point because if you have a certain arrangement and your new firm has a different arrangement, perhaps you can get more salary or other benefits if the new firm does not have as high of a process. That’s where a professional recruiter can come in also because that person is going to know your firm, from what you tell them. They are also going to know what the market is- what other firms are doing. That’s not a reason by itself to make a job change but the right recruiter will know how the market is and if it’s not as robust as what you currently have, get that money for you in some other way. If you have any questions about this topic or would like more information, give us a call, shoot us an email or a text- we would love to hear from you.