In today’s competitive landscape, many consulting firms are facing a crossroads when it comes to leadership compensation. The traditional “eat what you kill” model—where partners are primarily compensated based on individual revenue production—has been the norm for decades. While this approach worked in high-growth eras, it often results in siloed leadership, internal competition, and long-term instability.
At Select Advisors Institute, we’ve worked with some of the most respected consulting and professional services firms across the country. Through our firsthand experience advising executive leadership teams, we’ve observed a significant shift: top-performing firms are transitioning toward a more integrated, team-based compensation strategy.
Why the change? The short answer: talent retention and firm sustainability. In recent years, we’ve seen a noticeable increase in partner exits—some starting their own practices, others shifting to entirely different industries. Often, these exits stem not from culture or performance issues, but from compensation systems that no longer reflect the collaborative, long-term vision of the firm.
When compensation solely rewards short-term rainmaking, leadership cohesion suffers. The best firms understand that sustainable growth is a team sport. Equity, retention bonuses, profit-sharing based on firm health—not just individual production—are becoming essential levers for retaining leadership and incentivizing firm-wide contributions.
Another trend we’re seeing is firms creating compensation committees comprised of senior leaders who analyze both tangible performance metrics and intangible leadership behaviors. This allows for more balanced decision-making, especially when rewarding roles like team mentorship, operational improvements, and cultural leadership—areas traditionally overlooked in performance-based comp models.
Moreover, generational shifts in the workforce are forcing firms to rethink what motivates today’s rising leaders. Millennials and Gen Z professionals often value stability, purpose, and shared success over aggressive, transactional compensation. Forward-thinking firms are adapting by offering longer-term equity paths, clear promotion tracks, and leadership development programs that tie directly to compensation outcomes.
Here at Select Advisors Institute, we don’t believe in one-size-fits-all models. Instead, we guide firms through a structured diagnostic process:
Assessment of current pay structures across leadership tiers
Review of performance metrics aligned with firm goals
Feedback from existing leadership and next-gen talent
Competitive benchmarking within the consulting industry
Design of phased compensation models that evolve with firm maturity
Compensation isn’t just about paychecks—it’s a reflection of what a firm values. When thoughtfully designed, compensation models can build alignment, reinforce culture, and drive collective performance across the organization.
The firms that will lead the next decade aren’t just paying for performance—they’re investing in leadership, loyalty, and long-term legacy.
If your firm is exploring how to modernize its compensation structure while staying true to its culture, our team at Select Advisors Institute is here to support you through every phase of the transformation.
Proven guide to designing and redesigning incentive compensation for financial advisors: metric choices, payout models, compliance, leadership incentives, and transition tips. Select Advisors Institute (since 2014).