British Invasion Continues, Equity Partners Forced Out, Get Haircuts

The British keep coming. 

You already have heard that UK Magic Circle law firm Linklaters poached two FIFA partners from Paul, Weiss for the New York office. They are Christopher Boehing and Daniel Levi.

Now, a more recent newsflash from Law Fuel is how UK Freshfields is strengthening its New York presence. That includes providing Profit Per Equity Partner up to $17 million. But to pay for that it's pushing out or giving compensation haircuts to equity partners in England and Europe. The hits are coming to its London headquarters as well as the Paris and German offices.

The New York legal market is the largest in the world. It is so unique that even in high-pressure Kirkland & Ellis (I learned from coaching) some of K&E lawyers decide they have to leave it for the less stressful Chicago office.

But, along with the British invasion there's the American one of London. That has raised salaries among all the law firms. Paul, Weiss' Brad Karp and Scott Barshay built that expansion of its operations into a powerhouse. Nowhereville for years after its 2001 start it's now a major profit center for Paul, Weiss. Recently it handled Apollo's purchase of EasyJet. 

Meanwhile Freshfields is on trend with most other law firms. Cutting equity partners or shaming them with reductions in compensation has become standard. No longer is there employment security in practicing law at large firms. In addition, Freshfields introduced the non-equity partner tier. That structure filters more up to the equity one. Essentially all associates get is the title "partner," but none of the benefits of being an owner. Moreover, since they are employees, they can be terminated at any time for whatever reason, at least in the US.

In coaching, I warn those planning law school to be prepared for continued employment uncertainty. Even the once-staid job of federal worker has imploded. 

Career Paths? 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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