Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Financial Considerations That Involve Your Partnership Agreement
Becoming a firm partner has long been the unquestioned goal of most lawyers. But in today's large law firms, with many hundreds of partners, is this still a desirable goal when a given partner's voice may have little influence over the direction of the firm, and when a partner's income is determined by a “compensation committee” that lacks transparency? Partners often feel entitled to be rewarded by virtue of their partnership status alone, similar to the rewards given their fellow partners. Is this still a realistic expectation in most large firms?
Recognizing Two-Tier Realities
A new report by Georgetown Law School's Center for the Study of the Legal Profession shows that it is not. See, “2013 Report on the State of the Legal Market.” The report says that as firms have struggled with sluggish demand growth and low productivity, they have increasingly raised the bar for equity partnership while increasing non-equity partnership positions. Of the country's 200 largest law firms:
- 169 of them have two-tier equity/non-equity partnerships.
- The percentage of lawyers who are equity partners in these firms dropped to 25% in 2011, down from 34% in 2005 and 36% in 2000.
- Spreads in compensation between the highest and lowest paid partners (even within equity partner ranks) have widened from the 4:1 or 5:1 range to 6:1 or 7:1 or even higher.
Such corporate law firms increasingly mirror the pay gap between top corporate executives and the rest of their workforce. Yet “employee” non-equity partners own the firm and thus are responsible for its debts. When partners have unequal rewards but share equal risk it leads to a situation that, according to many accounts, produced the Dewey & LeBoeuf bankruptcy. The firm had hired many lawyers with very high guaranteed compensation, often by agreements structured without informing the general partnership. When the fortunes of the firm sagged, the high-rollers bailed, the firm died ' and the rest of the partners were left holding the bag.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.