An Equity Partner in Big Law, But Not a Star: Expect a Pay Cut This Year

It's nothing new. Law firms chase star talent and pay premium compensation for those twinklers. Way back in 2021, Paul, Weiss' Brad Karp hammered in Bloomberg Law the critical importance of that star power. Law firms which don't have the financial resources to recruit, hold and motivate them could stop growing, going out of business. 

What is new are these current realities: the current frenzy of the chase and annual compensation reaching $40 million. 

Well, equity partners who aren't stars will help pay for that payout. Law.com predicts haircuts for some of them this year.

There always had been a caste system in Big Law, a niche in which prestige is an embedded value. Never were all equity partners equal. It had been standard to de-equitize those not cutting it or even force them out. A strategy of shaming usually was effective to get them to exit. 

Now, it's more brutal. Already the number of equity partners is being reduced. That's to ensure top dollar for the stars. The smaller the pool of partners the more money for each one. In 2022 David Enrich documented in "Servants of the Damned" the shift in practicing law in large firms from a profession to a raw business. As in all business there is no employment security, even for those who made it to equity partner.

In coaching, I am blunt: Only fools "settle in." The warning is to never become comfortable.

Careers? So Over. It’s about Earning a Good Living. No matter what.

Complimentary consultation. No Pressure. Street-smart Guidance. Contact Jane Genova janegenova374@gmail.com.


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