Biglaw Partners On The Hot Seat: Firms Are Demoting Partners Hand Over Fist
Above the Law takes a look at a new trend: law firms are demoting — if not firing — partners at a healthy clip over profitability fears.
The article quotes a Wall Street Journal report:
“Faced with client pressure to keep down costs and industry competition to achieve the highest profits, law firms now frequently assess which lawyers are worthy enough for the top rungs of partnership. Those who don’t bill enough hours or bring in enough business are quietly asked to leave or demoted from the so-called equity tier.”
Perhaps this marks the first, furtive steps into a new Biglaw model, writes Above the Law’s Joe Patrice, where the 8-year track gives way to a more corporate structure featuring a well-compensated middle management tier spending 5-10 additional years in a non-equity role.