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A Novel Approach To Compensation
Conventional wisdom, as well as economic theory, tells us that the more of something we have, the less of it we want . . . but that is not the case with money! According to some brand new research released in January by Jeffrey Pfeffer (professor of organizational behavior at Stanford’s Business School), money earned through our individual labors is more important to us than money that comes from other sources like investments. And the more money paid for each hour of work, the more important that money becomes.
According to Jeffrey’s research paper, “When Does Money Make Money More Important” money is like an addictive substance in that it raises the bar and leaves people always wanting more. We generally believe that our compensation communicates our self-worth. The higher the compensation, the more importance the person places on money.
On that note, what follows is a discussion with one AmLaw managing partner (who will remain anonymous) who has taken a completely different route from most other firms. The transcript of this discussion is provided only to stimulate your thoughts about how we have usually approached partner compensation in many firms.
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Ashridge House 
