Legal News

Non-equity Partners In “Precarious Position”
Download PDF

At least two more law firms are considering following the lead of DLA Piper, requiring nonequity partners to buy into equity status, according to William Henderson of Indiana University law school.

Henderson told the National Law Journal [Req. Login] that the move is aimed at improving law firm balance sheets. “It’s getting rid of a fixed cost. It’s moving to more of an eat-what-you-kill [model].”

Last month, DLA Piper invited 275 nonequity partners to make capital contributions and join the equity ranks. The capital requirement is a percentage of budgeted net income, and could reach $150,000 per lawyer. The idea is to supply cash to the firm and motivate the promoted partners to bring in work.

  
What
Where


The story says nonequity partners could be in the most precarious position at law firms. The average increase in the number of nonequity partners at the nation’s top law firms has been outpacing that of equity partners. In the past, nonequity lawyers earned about $300,000 a year to handle legal work, but this year there is less work to go around.

Via ABA Journal.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




 

Most Popular

Legal Career Resources

September 27, 2016 Going In-house Is Career Suicide For Good Attorneys

Summary: The best attorneys should never give up on their career by going in-house. Read on to learn why. Read Why Going In-house Is Often the Worst Decision a Good Attorney Can Ever Make to learn more. Going in-house is […]

read more

SEARCH IN ARCHIVE

To Top