The Wall Street Journal had a piece this weekend Partnership Isn’t what It Used To Be (Sara Randazo) discussing how how partnership at the largest U.S. law firms has changed and how Kirkland & Ellis, the highest grossing firm in the world, has adopted the two-tiered partner system.
The two-tiered partner system has some lawyers who are equity partners while others are not (on salary only). The result of this partner system, modeled after investment banks operating system is the spread between the highest and lowest-paid partners is high, 43-to-1. Among its equity partners, the spread is nearing 9-to-1. Traditionally, “the best-paid partner made no more than three or four times the most junior at the nation’s top law firms.” -WSJ
Meanwhile firms that cherish seniority are fewer and fewer. There are some still, such as Cleary, Gottlieb Steen & Hamilton LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP who are using a “modified lockstep model”.
Profit Machines
“In 2000, 78% of partners held equity in the firm, according to American Lawyer’s ALM Intelligence. Last year, 56% did.
Making partner doesn’t just take longer. It takes hustle. A few decades ago, partner titles were handed out largely on the basis of being technically proficient. Now being a business generator is a crucial component.”
WSJ
Hopefully you see how much harder it is to get to the top now.
If only there was something of help. Oh, no, here it is.
Head over to AMZ and get your copy today before your partners do.
