(More) Bonuses: Alternatives to the Cartel

Thanks to the folks at “Roll on Friday” who, over the past two weeks, have been reporting about surges of bonus structure creativity in the red-hot London market. At its essence, the two firms, S.J. Berwin and CMS Cameron McKenna, are implementing reasonably transparent hours-based bonus structures that reward top billers appropriately. Needless to say that hours-based targets are not a new idea. What is remarkable, however, is the effort to publicize the reality of the bonus structure - rather then hide it in opaque internal policy directives. Its also refreshing to see a recruiting and retention marketing effort (which is, after all, what these announcements are) that do not make empty noises about "matching the market". For better or worse, these firms are setting their compensation schemes apart from their competitors - which can only result in better informed (and hopefully more lasting) career choices by potential lateral movers.