BigLaw is aggressively demoting partners in the face of modern-day legal practice. In case you missed it, this article ran in mid-October in The Wall Street Journal. It profiles Shearman & Sterling and Chadbourne & Parke and presents a somber dose of reality as firms run more like businesses with a watchful eye on profitability. The past year and a half has seen “pervasive” trimming of partners at the nation’s top 100 law firms, says legal consultant Peter Zeughauser. “It’s very difficult for firms to deal with this issue,” says Jeffrey Lowe, head of the law firm practice at recruiting firm Major, Lindsey & Africa. “But the business pressure is forcing them to do so.” Here are few factoids presented in the article:
- The average number of billable hours by equity partners at AmLaw 200 firms has dropped nine percent (9%) since 2007 to 1,589.
- Fifty-six percent (56%) of AmLaw 200 firms plan to de-equitize underperforming partners in the coming year.
- Sixty-seven percent (67%) of them plan to take it one step further and ask partners to leave the firm altogether.