Home

Compensation Compression at Shearman & Sterling
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

You can please some of the partners some of the time, but you certainly can’t please all of the partners all of the time. That’s what bigwigs at Shearman & Sterling, a major New York law firm are discovering as they tinker with their pay rates for partners.

According to Reuters, Shearman & Sterling is reducing the pay of senior partners and increasing the pay of junior partners and associates in an effort to reward younger, business-generating attorneys and attract star talent from other firms. Senior partners will now be more reliant on the firm’s bonus structure, which rewards both outstanding partners and successful practice groups within the firm.

  
What
Where


Unsurprisingly, this policy has miffed the senior partners. Reuters reports that while some of the senior partners understand that changing business policies are required in a troubled economy, the majority were unhappy that their pay had been cut, as almost anyone at any job might be.

This new pay policy is something of a reversal for Shearman & Sterling, who spent the previous three years cutting the pay of junior partners and increasing the pay of more senior attorneys. This policy obviously upset the mid-level attorneys, and Reuters reports that this was creating a lot of resentment throughout the firm.

This flip-flopping of pay policy is no doubt aggravating to attorneys at Shearman & Sterling, regardless of their status within the firm. Shearman & Sterling is known for their close business relationship with Citigroup, and like most big law firms across the country, is tightening their belts in this less-stellar-legal climate. The firm’s profits have been declining since 2008, and the firm hopes that this new pay system, which is based more on merit than the previous system, will reward attorneys of all levels for their ability to generate business, perform for clients, and utilize teamwork to increase efficiency.

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!!




Reuters attempted to contact several of the firms’ senior partners, but they declined to comment. A spokesman for Shearman & Sterling said that the firm’s revenue has increased slightly over the past two years.





 

RELEVANT JOBS

Sr. Counsel - CA - Personal Injury Insurance Defense Trial Attorney

USA-CA-San Francisco

Hickey Smith Dodd is seeking a California Personal Injury Insurance Defense Attorney with significan...

Apply now

Commercial Litigation Attorney

USA-FL-Miami

Commercial litigation attorney needed. We seek an attorney with at least four years of practical com...

Apply now

Legal Secretary

USA-MS-Oxford

Markow Walker, P.A. is currently seeking a Legal Secretary for our Oxford,MS location. Word and Word...

Apply now

Immigration Attorney

USA-MD-Silver Spring

Our ideal candidate would be someone with experience in the following: Family petitions, asylum case...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Associate Attorney

USA-CA-Woodland Hills

Woodland Hills office of a BCG Attorney Search Top Ranked Law Firm seeks an associate attorney with ...

Apply Now

Associate Attorney

USA-MA-Braintree

Braintree office of our client seeks associate attorney with 1-5 years of experience in civil litiga...

Apply Now

Criminal Defense Attorney

USA-NC-Raleigh

Raleigh office of a BCG Attorney Search Top Ranked Law Firm seeks a criminal defense attorney with 1...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top