Partnership in Troubled Economic Times

Many law firms have announced and implemented cuts in both lawyer and staff personnel, and there is reason to believe that our economy may well worsen. In addition, as to existing lawyer populations, firms have had to eliminate or diminish associate bonuses, freeze salaries, cease or modify otherwise usual and customary hiring, delay start dates for associates to whom commitments have already been made, and generally reduce the scope and magnitude of all lawyer-related expenses.

However, many firms have used the recession as an excuse to review the breadth and depth of the expertise in practice areas and aggressively recruit as equity partners attorneys (who may or may not be equity partners in their firms) who possess expertise and/or control work of clients in practice areas that are strategically important. Similarly, many smaller and mid-size firms have successfully recruited attorneys from larger firms' attorneys (who were not partners) who controlled a certain amount of client business that was insufficient to become a partner in the large firm, but more than adequate to become an equity partner in smaller or mid-size firms.