Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: A, sometimes, very controversial concern in any professional service firm across the globe, be it a law firm, accounting practice or consulting engineering firm, is how to construct an equitable, performance-based reward system for executives and professional partners. This study project will address those key issues that affects partner compensation and profit sharing decisions within professional law firms on a daily basis, by establishing which factors influence the current and future legal environment as well as the factors which drive the decision making process when selecting a partner compensation system for a specific law firm, regardless of size and legal focus. This study project also establish which partner compensation systems are currently available and frequently being used by several law firms across the globe, by investigating and analysing their intrinsic features and operations. A total of eleven compensation systems have been identified and will be reported on. This includes the different lockstep models, the merit or performance–based model (also referred to as the discretionary model), the peer-review system as well as other least frequently used systems like the equal partnership, ownership percentage model, 50/50 subjective-objective system, the modified “Hale and Dorr”, simple unit and the team building systems. The study project, by focussing on the operations of a specifically selected South African law firm, will furthermore investigate what effects a possible firm-wide approach to profit sharing, instead of the traditional partner / owner profit sharing systems, might have on the overall operation and / or performance of a law firm. Several performance appraisal concepts and general remuneration principles will be addressed which forms the backbone of this firm-wide approach and which are the key issues to effectively evaluate a person’s overall performance and contributions to a firm – those elements that should be aligned with your firm’s remuneration system. In essence, the aim of this study project is to establish an information resource base on partner compensation and profit share models in law firms, to establish the viability of introducing a firm-wide approach as alternative to the traditional partner-only profit sharing models, to establish a formal framework and model for firm-wide profit sharing for the selected South African law firm and ultimately presenting an effective decision making tool and concept document when selecting a fair and equitable remuneration system for your legal practice. / AFRIKAANSE OPSOMMING: Een van die mees kontroversiële aspekte in professionele dienste firmas wêreldwyd, hetsy binne ‘n regsfirma, rekeningkundige praktyk of konsulteringsfirma, is hoe om uitvoerende bestuur en professionele vennote op gelyke voet te vergoed gebaseer op hulle werklike algehele prestasie. Hierdie werkstuk sal daardie kern aspekte adresseer wat vennote vergoeding- en winsdelingstelsel besluite, binne regsfirmas, op ‘n daaglikse basis affekteer deur die lewensvatbare faktore te identifiseer wat die huidige en toekomstige regsomgewing sal beïnvloed, asook daardie faktore wat die besluitnemingsproses dryf wanneer dit kom by die keuse van ‘n vennote vergoedingstelsel vir ‘n spesifieke regsfirma, ongeag die relatiewe grootte en fokus van die regsfirma. Hierdie werkstuk sal verder vasstel watter vennote vergoedingstelsels tans op ‘n gereelde basis gebruik word deur regsfirmas wêreldwyd, deur ondersoek in te stel na die verskillende stelsels se inherente eienskappe en operasionele werking. Elf vennote vergoedingstelsels word in hierdie studie bespreek. Dit sluit in die verskillende tipe “Lockstep” modelle, die prestasie-meriete gebasseerde modelle, die “peer-review” model asook ander modelle wat minder konsekwent toegepas en aangewend word soos die gelyke vennootskap model, die eienaarskap persentasie model, die 50/50 subjektiewe-objektiewe model, die aangepaste “Hale and Dorr”, die “simple unit” en spanbou modelle. Die werkstuk, deur spesifiek te fokus op die werksaamhede van ‘n spesifieke Suid-Afrikaanse regsfirma, sal ook die effek van ‘n moontlike firma-wye benadering tot winsdeling ondersoek, in teenstelling met die tradisionele benadering van net uitvoerende bestuur wat kan deel in die wins, en sal fokus op die invloed van so ‘n stelsel op die algehele werksaamhede en prestasies van ‘n tipiese regsfirma. Verskeie konsepte van prestasie meting, asook die algemene beginsels van vergoeding word aangespreek wat die fondamente vorm van so ‘n firma-wye benadering – dus daardie kern aspekte wat effektiewe prestasie meting verteenwoordig en wat in lyn gebring moet word met die firma se gekose vergoedingstelsel. Die doel van hierdie werkstuk is dus om ‘n inligtingsdatabasis oor vennote vergoeding- en winsdelingstelsels in regsfirmas te vestig, om vas te stel of daar moontlike potensiaal daarin is om ‘n firma-wye benadering te ontwikkel as alternatief vir die tradisionele modelle waar net uitvoerende bestuur of eienaars deel in die winste, en vervolgens om ‘n formele raamwerk en model vir firma-wye winsdeling te ontwerp om moontlik geimplementeer te word in die spesifieke regsfirma wat ondersoek word. Die werkstuk sal dus dien as ‘n effektiewe besluitnemings- hulpbron wanneer daar op ‘n spesifieke vergoedingstelsel vir jou regsfirma besluit moet word.

In third-party litigation funding agreements, funders agree to finance a litigant’s litigation on condition that the funder will deduct a specified percentage from the capital awarded to the litigant in the event of success. In contingency fee agreements, such funding is provided by lawyers. Initially both these agreements were illegal in South Africa and England, but as civil courts became able to counter corruption and abuse – and with the recognition of the need to give more litigants access to justice – both were recognised as legal. Third-party litigation funding agreements by non-lawyers are unregulated in most jurisdictions. As the voluntary self-regulation in England is unsatisfactory, mandatory statutory regulation should be introduced in South Africa. The Contingency Fees Act 66 of 1997 caps the fee to 25% on the capital amount in South Africa. Since no such cap exists in Ontario (Canada), the cap of 25% in South Africa should be revised. / Eka Mintwanano yo nyika nseketelo wa mali eka nandzu wa thedi phati, vanyiki va mali va pfumela ku hakela mali ya nandzu wa mumangali hi xipimelo xa leswaku munyiki wa mali u ta susa phesenteji leyi kombisiweke ku suka eka mali leyi nyikiweke mumangali loko a humelela. Eka mintwanano ya tihakelo ta vukorhokeri, nseketelo walowo wa mali wu nyikiwa hi maloyara. Ekusunguleni mintwanano leyi hinkwayo a yi nga ri enawini eAfrika Dzonga na le England, kambe tanihi leswi tikhoto ta mfumo ti koteke ku kokela etlhelo eka timhaka ta vukungundzwana na nxaniso- na ku anakanyiwa ka xilaveko xo nyika vamangali votala mfikelelo wa vululami- hinkwayo yi anakanyiwile tanihi leyi nga enawini. Mintwanano yo nyika nseketelo wa mali eka nandzu wa thedi phati hi vanhu lava nga riki maloyara a yi lawuriwi eka vuavanyisi byotala. Tanihileswi vutilawuri byo tinyiketa eEngland byi nga riki kahle, mafambiselo ya nawu lama lavekaka ya fanele ya tivisiwa eAfrika Dzonga. Nawu wa Tihakelo ta Vukorhokeri wa 66 wa 1997 wu veka mpimo wa hakelo eka 25% eka xiphemu xa tsengo wa mali eAfrika Dzonga. Ku sukela loko ku ri hava mpimo lowu nga kona eOntario (Canada), mpimo wa 25% eAfrika Dzonga wu fanele wu langutisiwa hi vuntshwa. / Kha thendelano dza ndambedzo dza mbilo ine ya itelwa muthu, vhabadeli vho tenda u badela mbilo ya muthu o no khou itelwa mbilo tenda mubadeli a tshi ḓo ṱusa phesenthe yo tiwaho kha tshelede yo avhelwaho muthu ane a khou itelwa mbilo arali a kunda. Kha thendelano dza mbadelo dzine dza badelwa musi ramilayo o no kunda kha mulandu, mbadelo idzo dzi ṋetshedzwa nga vhoramilayo. Mathomoni thendelano idzi vhuvhili hadzo dzo vha dzi siho mulayoni Afurika Tshipembe na England, fhedzi musi khothe dza mbilo dzi tshi vho thoma u hanedzana na tshanḓanguvhoni na u tambudzwa - na u dzhiela nṱha ṱhoḓea ya u ṋea vhathu vhane vha khou itelwa mbilo u swikelela vhulamukanyi –vhuvhili hadzo dzo dzhiwa sa dzi re mulayoni. Thendelano dza ndambedzo dza mbilo ine muthu a itelwa nga vhathu vhane vha sa vhe vhoramilayo a i langulwi kha vhulamukanyi vhunzhi. Samusi u langulwa ha ndaulo nga iwe muṋe hu ha u tou funa ngei England a zwi ṱanganedzwi, ndaulo ya khombekhombe ya mulayo i fanela u ḓivhadzwa Afurika Tshipembe. Mulayo wa Mbadelo dzine dza badelwa Ramilayo musi o kunda wa nomboro 66 wa 1997 mutengo wawo u guma kha 25% mutengo wa tshelede Afurika Tshipembe. Samusi tshikalo itsho tshi sa wanali ngei Ontario (Canada), tshikalo itsho tsha 25% Afurika Tshipembe tshi fanela u sedzuluswa hafhu. / Private Law / LL. M.