Bonus to law firm for reductions in law suits for and against the client

As part of its arrangement with Tyco International, the law firm Eversheds has incentives to meet specified measures of client satisfaction. According to an article in Met. Corp. Counsel, Vol. 16, June 2008 at 71, the company and firm agreed to conduct a regular audit, “with bonuses calculated by how much Eversheds equals or exceeds stipulated measurement levels.”

One example given is that “Bonuses for proactive litigation avoidance will be determined by the percentage reduction in proceedings against Tyco, or proceedings brought by Tyco, compared to 2007.” Tyco will also reward Eversheds for reaching a range of diversity targets. Any large-scale partnering arrangement ought to include performance benchmarks and performance milestones.

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