WSG LATIN AMERICAN REGIONAL MEETING

WSG LATIN AMERICAN REGIONAL MEETING

Challenging Times: Growth and the New Structure of the Firms Moderator: Ramón Ignacio Moyano Partner, Estudio Beccar Varela Panelists: Fernando C. Alonso Partner, Hunton & Williams LLP Pablo Peschiera Managing Partner, Define Consultoría S.A. Jose E. Quiñones Managing Partner, Quiñones, Ibargüen & Luján & Mata, S.C. Ronaldo C. Veirano Founding Partner, Veirano Advogados

Path to Partnership Hunton & Williams Equity Partner (Levels) Equity Partner Non-Equity Partner Counsel (Indefinite duration/ contract ) Counsel Other firm Associates 8 to 9 years of practice

Associate Retention Jose E. Quinones Guatemala

SIMPLIFIED STRUCTURE Team Leader (Partner) Corporate, M&A, Tax & Financing Structures Team Leader (Partner) Corporate & Financing Team Leader (Partner) Corporate & Electricity Team Leader (Partner) Arbitration & Litigation Team Leader (Partner) Labour Law Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate

ASSOCIATE ISSUES Correct allocation of business risk Significance of Corporate Culture Nudge with compensation packages, practice areas, specialty clients, flexible schedules Flexible compensation structures as a mean for customization of individual situations Managing apparent hurdles like Gender Polarization

Overall trends in evaluation of personal success Direct Economic Comparisons Vs. Overall happiness Research in Hapiness New approaches to Well-being

PARTNERSHIP CONSIDERATIONS Win / Lose decision process vs. career alternatives Adapting to different requirements, involves revisiting the business model? Stripping of Partnership Benefits & Obligations

24/04/2012 Challenging Times: Growth and the New Structure of the Firms Define s Case

Agenda Our Business Ownership Structure Organization structure Distribution of Benefits

Our Business Six Lines of Business Define Consultoría 1997 Management Consulting Financial Advisory Economic Research Define is a group of three professional services companies Define Servicios 2010 Accounting and Administration Services Supervision and Control Services Dirige 2000 Company and Asset Liquidation 13

Ownership Structure Transition Process Partners were admitted early on Some partners were not up to the challenge The target is to Share risks and rewards across business lines Motivate cross selling and synergies The founder needs to make room for younger partners Founder Partners Define Holding Partners Define Consultoría Define Consultoría Define Servicios Transition Define Servicios Dirige Dirige 14

Organization Structure Structure and Career Paths Partners Board Retaining young talent Continuos learning Compensation Professional growth Flexibility Consulting Director Accounting Director Managing Director Supervision Director Liquidation Director Retirement: no policy yet The founder will be the first to retire Project Manager Consultant Sr. & Jr. CPA Accounting Project Supervisor s Analyst Analyst 15

Distribution of Benefits Criteria for Distribution of Benefits Short term motivation Alignment of long term interests The challenge is to balance short term motivation with long term interests Potential for developing the business Commercial drive to build client base Innovation and service development 16

Distribution of Benefits Short Term Motivation Cash Bonuses The challenge is to balance short term motivation with long term interests Salary Originating Bonus 5 10% of fees Execution Bonus We calculate the contribution margin for each project Part of this margin is paid in cash and shared by the Project Manager with the project team members We keep a current account of the managers projects Bonuses are paid monthly or at the end of the project 17

Distribution of Benefits Alignment of Long Term Interests Compensation in stock We expect associates and partners to bet on the growth of the company and long term value generation The founder gave stock to partners / associates based on Individual performance and contribution to growth The employee s long term potential of for developing the business We are currently implementing a profit sharing scheme by which The Execution Bonus paid in cash is caped at a % of the project income The excess over the cap is paid in stock to the manager / associate at the end of the year 18

GOVERNANÇA CORPORATIVA HOJE PLENÁRIA DE SÓCIOS Elege e destitui sócios de capital; Elege Conselho de Administração; Aprova alterações na estrutura organizacional; Aprova contas semestralmente. CONSELHO DE ADMINISTRAÇÃO Aprova o plano estratégico e o orçamento semestral; escolhe o CEO e aprova os demais gestores; avalia a performance dos gestores; interage com o Conselho Consultivo e recomenda candidatos a sociedade de capital. COMITÊ GESTOR Elabora e executa o plano estratégico e o orçamento; coordena a avaliação dos advogados; define a distribuição de bônus; foca na rentabilidade e produtividade através do aumento de receita e redução de custos. CONSELHO CONSULTIVO Avalia e aconselha sobre as diretrizes do negócio. Os conselheiros não podem ser clientes do Veirano.

SISTEMA ORGANIZACIONAL Sócio Gestor Finanças Marketing Práticas Jurídicas RH e Administração Tecnologia da Informação Sócio Gestor e de Finanças Pedro Freitas Gestor de Marketing Otavio Carneiro Gestor de Práticas Jurídicas Ricardo Veirano Gestora de RH e Adm Kristie Vasconcelos Gestora de TI Tânia Maria Sales

PRÁTICAS JURÍDICAS

Video: How to Make Work Life Balance Work