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Periodic Bonus Plan - Georgia

Periodic Bonus Plan Form. This is a Georgia form and can be used in Law Practice Management State Bar Of Georgia Statewide .
 Fillable pdf Last Modified 5/19/2005
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PERIODIC BONUS PLANThe Periodic Bonus Plan is designed to reward a lawyer for his extra efforts that benefit the entirefirm. It is not intended to pay out to each lawyer exactly what he brought in after sharing theoverhead. The Plan recognizes the concept that all the lawyers are benefiting by working togetheras a firm and should benefit from the efforts and good fortune of any individual member, while atthe same time, the individual member, whose efforts and good fortune has benefited all others, isrewarded. Essentially, the Plan pays bonuses to the lawyer who makes enough money to cover his share ofthe common overhead expenses, his salary, and a certain percentage designed to cover increasedexpenses or as a fudge factor against other lawyers not making at least their overhead allocationand salary. Periodic bonuses shall be computed and paid as hereinafter set forth at the end of every four (4)months. Four Months Bonus The amount of a lawyers periodic bonus at the end of the first four (4) months shall be equal to50% of the amount that the lawyers fee compilation for said four (4) month period exceeds thetotal of a. that lawyers share of overhead expenses for said period, b. that lawyers base salary for said period, and c. 10% of the total of 1 and 2. Eight Months Bonus The amount of a lawyers periodic bonus at the end of eight (8) months shall be equal to 50% of the amount that the lawyers fee compilation for said eight (8) month period exceeds thetotal of a. that lawyers share of overhead expenses for said period, b. that lawyers base salary for said period, and c. 10% of the total of 1 and 2. LESS any amounts previously received as a periodic bonus during the current year. <<<<<<<<<********>>>>>>>>>>>>> 2Twelve Months Bonus The amount of a lawyers periodic bonus at the end of twelve months shall be equal to 50% of the amount that the lawyers fee compilation for said twelve (12) month period exceedsthe total of 1. that lawyers share of overhead expenses for said period, 2. that lawyers base salary for said period, and 3. 10% of the total of 1 and 2 LESS any amounts previously received as a periodic bonus during the current year. If the amount of a lawyers periodic bonus, as computed at the end of twelve months, is a negativefigure, then such lawyer shall be indebted to the firm for such amount. The lawyer shall sign apromissory note to the firm for said amount, bearing interest at the rate of 7% per annum from thelast day of said twelve month period. The full amount of said obligation, together withaccrued interest shall be due and payable one year from the last day of said twelve month period. Any lawyer so indebted to the firm may not receive any amounts as a year end bonus or periodicbonus until the full amount of such indebtedness, together with accrued interest, is paid. Anyamounts for year end bonuses or periodic bonuses to which such lawyer would otherwise beentitled shall be applied to such indebtedness so as to first pay the accrued interest and thenreduce the principal. If any lawyer has received a periodic bonus during a twelve month computation period and leavesthe employment of the firm for any reason prior to the end of such twelve month computationperiod, then such lawyer shall be indebted to the firm for any such amount received as a periodicbonus during such twelve month computation period. Such indebtedness shall accrue interest atthe rate of 7% per annum from the date such lawyer leaves the firm and shall become due andpayable upon demand. Such lawyer shall not be entitled to any bonuses during any twelve monthcomputation period that the lawyer leaves the firm prior to the end of that twelve monthcomputation period. If the computations at the end of either four or eight months indicate a lawyer could receive aperiodic bonus, such lawyer can elect not to receive any or all of such periodic bonus until afterthe computations are final at the end of the twelve month computation period. In no event shall any lawyer receive in excess of $15,000.00 as a periodic bonus prior to thecomputation at the end of the twelve month computation period. FEE COMPILATIONA monthly fee compilation shall be maintained by the designated Office Manager. Suchcompilation shall list, for each lawyer, the fees received from each client by name during each<<<<<<<<<********>>>>>>>>>>>>> 3calendar month. The compilation shall be updated at least weekly and finalized at the end of eachmonth. When more than one lawyer has done work for a particular client, the lawyers involved shouldattempt to agree upon the appropriate allocation of the fee and inform the designated OfficeManager of any necessary adjustments to the fee compilation.If at the end of any month, there are any unresolved disagreements as to how a fee should beallocated, the same shall be resolved at the next firm meeting immediately following the end of themonth. Each lawyer shall present his reasoning to the entire firm and the appropriate allocationshall be determined by the firm. After any adjustments are made, the monthly fee compilation shall be approved by the firm andthe totals thereon shall be the figures used in salary and bonus computations. OVERHEAD ALLOCATIONSEach lawyers overhead allocation shall be equal to ________ of the actual expenditures of thefirm during the particular computation period but not including expenditures for lawyers salaries. A monthly Profit and Loss statement shall be prepared and presented at the first firm meeting ofeach month and all expenditures explained. At the first firm meeting after the end of any fourmonth computation period, the firm shall agree upon the total expenditures that shall be used todetermine the overhead allocation. OWNERSHIPOwnership percentages shall be as follows: Attorney Percentages Percentages for _____________________________ shall be purchased from_________________, the value of the stock being based upon the fair market value of the assetsof the firm. Suitable arrangements shall be made for such purchase. The percentages only reflect ownership interest and voting power. They are not intended toreflect the relative salary positions of the lawyers or entitlement to bonuses. <<<<<<<<<********>>>>>>>>>>>>> 4 YEAR END BONUSThe compensation plan is designed to encourage each lawyer to at least cover his/her base salaryand allocation of overhead as well as contribute a certain percentage for growth or fudge factor.If each lawyer does exceed those amounts, then it is
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