Can You Keep a Secret? - Most Can't in Gossipy Legal Sector

 "The changes [in law firm partner compensation] include instituting secrecy around partner pay (Paul Weiss) ..." - Roy Strom, Bloomberg Law, May 23, 2024

That strategy - sometimes called a "black box" - has several objectives. Supposedly, they are to prevent:

Internal tension about the increasingly large spread among what different partners are making. For a while, though, there has already been resentment about junior partners having less status and power than senior partners. Soon enough those junior partners will recognize they are pulling in a lot less money. 

Partner flight. Given that they will be unaware of the spread, the magical thinking goes, they won't be ready to jump ship for a better financial deal. Yeah, sure. Partners make it their business to find out about money. 

Loss of client accounts. If partners take the exit, they could bring with them the clients they have been serving. Not only is that a hit to the business. The brand can lose equity.

All those objectives seems to make perfect sense. Oh, really.

As we know, the black box is nothing new. Jones Day has long had it and those lawyers employed there know how to get insider intel on market rates and the compensation frequently paid out above that. The lever to pull is networking. Those in a comparable position at another law firm, where there is mutual trust, can clue them in on the ranges. Just ask. Lawyers tend to be a gossipy breed. If they don't like what they hear they can package themselves to lateral. 

Meanwhile, the global poaching war continues to intensify. 

In coaching I am observing that the chase is after intel about what other firms are providing in terms of overall compensation. The game is to compare, then decide whether to stay and push for more or prepare to leave. 

Limiting beliefs? Self-defeating? Stuck? Complimentary consultation with Coach Jane Genova (text/phone 203-468-8579, janegenova374@gmail.com)