Making
partner
at
a
Biglaw
firm
seems
like
the
brass
ring
of
the
legal
world.
And
while
the
work
itself
doesn’t
get
easier,
most
people
probably
assume
at
least
their
financial
well-being
is
secured.
After
all,
the
well-publicized
profits
per
partner
at
the
top
firms
are
impressive.
But
new
reporting
suggests
it’s
not
that
straightforward.
As
reported
by
American
Lawyer,
anywhere
between
10%
to
30%
of
partners
get
a
compensation
haircut
from
year
to
year.
In
his
view,
consultant
Blane
Prescott
said
it’s
“not
at
all
unusual”
for
20%
to
30%
of
partners
at
a
firm
to
make
less
from
year
to
year.
He
also
said
he’s
“seeing
faster
movements
down”
in
compensation,
which
“definitely
helps”
to
provide
more
compensation
for
the
highest-performing
partners.
Which
doesn’t
necessarily
mean
the
partners
should
be
taking
a
hint
to
leave
the
firm.
But,
as
Prescott
continued,
“you
want
to
make
sure
their
compensation
is
consistent
with
their
performance.”
While
that
does
sound
like
a
harsh
reality
(and
other
consultants
put
the
range
of
partners
taking
a
cut
at
the
lower
end
of
the
10-30%
range),
and
one
that
did
not
happen
pre-2008
financial
crisis,
Fairfax
Associates
consultant
Kristin
Stark
said
it
does
make
some
sense.
Financial
performance
at
the
firms
has
increased,
and
that’s
maybe
been
a
boon
to
folks
who
aren’t
helping
bring
in
the
business.
Now,
even
the
middle
and
lower
performers
in
a
partnership
have
benefited
materially
from
the
ramp-up
in
law
firm
financial
performance
over
the
last
three
to
four
years,
Stark
said.
Significant
financial
gains
across
the
industry
lately
have
been
more
like
a
rising
tide
lifting
all
(or
many)
boats.“With
the
uptick
of
law
firm
performance
in
recent
years,
there’s
been
some
of
what
we’d
call
a
peanut
buttering
of
compensation,”
said
Stark.
“So
a
lot
of
people
whose
performance
hasn’t
gone
up
materially
have
benefitted
from
the
firm
increasing
its
overall
level
of
profitability.”
Matthew
Bersani,
a
founding
partner
of
Cliff
Group,
said,
“If
you
don’t
reduce
their
points,
the
payout
on
those
points
is
not
justified
by
the
revenue
they’re
bringing.”
The
new
partner
comp
tactic
is
increasingly
popular
in
the
industry:
“In
the
white-shoe
days,
it
was
unheard
of
to
move
somebody
down”
in
number
of
points
or
shares,
said
Bersani.
“Getting
moved
down
was
the
equivalent
of
telling
someone
to
[leave]
the
firm.”
Now
it’s
common
for
partners
to
fall
in
shares
or
points,
without
necessarily
implying
those
partners
should
leave,
he
added.
Well,
it’s
good
to
hear
not
all
the
remnants
of
collegiality
have
been
removed
from
the
profession.
Kathryn
Rubino
is
a
Senior
Editor
at
Above
the
Law,
host
of
The
Jabot
podcast,
and
co-host
of
Thinking
Like
A
Lawyer.
AtL
tipsters
are
the
best,
so
please
connect
with
her.
Feel
free
to
email
her
with
any
tips,
questions,
or
comments
and
follow
her
on
Twitter
@Kathryn1 or
Mastodon
@[email protected].