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Partner Compensation Formula of an AmLaw 50 Law Firm Revealed in Court

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published August 29, 2014

By CEO and Founder - BCG Attorney Search left

08/29/14

Partner Compensation Formula of an AmLaw 50 Law Firm Revealed in Court

Summary: Partner compensation formulas in large law firms are complex, contentious and rarely revealed to the public. However, in the course of a recent pay discrimination lawsuit, reviewed de novo by the U.S. Court of Appeals for the Sixth Circuit on August 25, 2014, a watertight partner compensation formula of an AmLaw 50 law firm, Foley & Lardner, came to fore.

On behalf of Foley & Lardner, Stanley Jaspan, Managing Partner, made a deposition to the U.S. District Court for the Eastern District of Michigan explaining the partner compensation formula of the law firm and refuting the claims of pay discrimination brought by the plaintiff. The matter is Carey v. Foley & Lardner LLP , U.S. Court of Appeals for the Sixth Circuit, No. 13-2331.

The Sixth Circuit went through Jaspan's deposition and summarized the essential points of the law firm's partner compensation formula in order to review the summary judgment of the lower court.

The opinion shows that Foley & Lardner does not use a mathematical "formula" or "numeric weighting" to calculate compensation. Instead, the Management and Compensation Committees consider both "quantitative data regarding each partner's personal production, billings, collections, work in process and receivables" and a range of qualitative metrics in a holistic manner to make compensation decisions.

The Sixth Circuit's opinion observes the qualitative factors of Foley's partner compensation metrics to include:
  • the skill level of the partner (e.g., does he/she first-chair bet-the-company cases or lead major transactions, or is the partner's contribution primarily in support roles or smaller matters) and his/her effort to build a practice with a national reputation,

  • the partner's actions truly indicative of ownership in the firm (i.e., acting beyond his/her self-interest for the benefit of the firm . . .),

  • the quality of the partner's investment time,

  • unacceptable or outstanding practices relating to the partner's overall time commitment to the firm,

  • the partner's contribution to client share initiatives, teamwork and enterprise creation,
    United States

  • unacceptable or outstanding conduct pertaining to interaction with associates, and specific performance as a formal or informal mentor,

  • situations of work hoarding by partners to the detriment of associates and/or younger partners,

  • the partner's actions to promote diversity in the firm, [and]

  • the partner's pro bono contribution.
Jaspan also submitted that Foley looks longer term "than a single year's contribution," and places "limitations on the downside [and] on the up side as to what [it] would do with [compensation] in a particular year." By taking the "long-term" view that promotes gradual rises and falls in compensation, Foley ensures that a partner "whose practice falls off" in a given year will not experience a drastic drop in salary.

Each year Foley emails all partners with instructions to submit a compensation memorandum describing their contributions to the firm in specified categories, such as teamwork and contribution to business expansion, business practices, business planning, supervision and mentoring, diversity, and other investment time activities.

Similar to a simple credit system, the Management Committee assigns each partner a number of compensation "units" based upon recommendations by the Compensation Committee. The Compensation Committee considers the memorandum each partner prepares describing his/her own "contributions to the Firm during the current fiscal year" and considers comments submitted by the "office managing partner and department chair, [and] comments sent by Industry Team department chair."

While the plaintiff partner lost the matter due to his core inability to identify a class of partners, or another partner, doing "equal work," and thus failing prima facie in establishing a proper cause of action, the compensation practices of Foley & Lardner revealed before the court make for serious reading, both for law firm partners and for other law firms. More so, because the compensation formula left almost no visible loopholes through which someone aggrieved might land a successful strike.

Looking for partner job in law firms? Click here to browse available opportunities across the USA.

This news originally appeared on BCGsearch.com: Partner Compensation Formula of an AmLaw 50 Law Firm Revealed in Court

About Harrison Barnes

No legal recruiter in the United States has placed more attorneys at top law firms across every practice area than Harrison Barnes. His unmatched expertise, industry connections, and proven placement strategies have made him the most influential legal career advisor for attorneys seeking success in Big Law, elite boutiques, mid-sized firms, small firms, firms in the largest and smallest markets, and in over 350 separate practice areas.

A Reach Unlike Any Other Legal Recruiter

Most legal recruiters focus only on placing attorneys in large markets or specific practice areas, but Harrison places attorneys at all levels, in all practice areas, and in all locations—from the most prestigious firms in New York, Los Angeles, and Washington, D.C., to small and mid-sized firms in rural markets. Every week, he successfully places attorneys not only in high-demand practice areas like corporate and litigation but also in niche and less commonly recruited areas such as:

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  • And many more...

This breadth of placements is unheard of in the legal recruiting industry and is a testament to his extraordinary ability to connect attorneys with the right firms, regardless of market size or practice area.

Proven Success at All Levels

With over 25 years of experience, Harrison has successfully placed attorneys at over 1,000 law firms, including:

  • Top Am Law 100 firms such including Sullivan and Cromwell, and almost every AmLaw 100 and AmLaw 200 law firm.
  • Elite boutique firms with specialized practices
  • Mid-sized firms looking to expand their practice areas
  • Growing firms in small and rural markets

He has also placed hundreds of law firm partners and has worked on firm and practice area mergers, helping law firms strategically grow their teams.

Unmatched Commitment to Attorney Success – The Story of BCG Attorney Search

Harrison Barnes is not just the most effective legal recruiter in the country, he is also the founder of BCG Attorney Search, a recruiting powerhouse that has helped thousands of attorneys transform their careers. His vision for BCG goes beyond just job placement; it is built on a mission to provide attorneys with opportunities they would never have access to otherwise. Unlike traditional recruiting firms, BCG Attorney Search operates as a career partner, not just a placement service. The firm’s unparalleled resources, including a team of over 150 employees, enable it to offer customized job searches, direct outreach to firms, and market intelligence that no other legal recruiting service provides. Attorneys working with Harrison and BCG gain access to hidden opportunities, real-time insights on firm hiring trends, and guidance from a team that truly understands the legal market. You can read more about how BCG Attorney Search revolutionizes legal recruiting here: The Story of BCG Attorney Search and What We Do for You.

The Most Trusted Career Advisor for Attorneys

Harrison’s legal career insights are the most widely followed in the profession.

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If you are serious about advancing your legal career and want access to the most sought-after law firm opportunities, Harrison Barnes is the most powerful recruiter to have on your side.

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With an unmatched track record of success, a vast team of over 150 dedicated employees, and a reach into every market and practice area, Harrison Barnes is the recruiter who makes career transformations happen and has the talent and resources behind him to make this happen.

A Relentless Commitment to Attorney Success

Unlike most recruiters who work with only a narrow subset of attorneys, Harrison Barnes works with lawyers at all stages of their careers, from junior associates to senior partners, in every practice area imaginable. His placements are not limited to only those with "elite" credentials—he has helped thousands of attorneys, including those who thought it was impossible to move firms, find their next great opportunity.

Harrison’s work is backed by a team of over 150 professionals who work around the clock to uncover hidden job opportunities at law firms across the country. His team:

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This level of dedicated support is unmatched in the legal recruiting industry.

A Legal Recruiter Who Changes Lives

Harrison believes that every attorney—no matter their background, law school, or previous experience—has the potential to find success in the right law firm environment. Many attorneys come to him feeling stuck in their careers, underpaid, or unsure of their next steps. Through his unique ability to identify the right opportunities, he helps attorneys transform their careers in ways they never thought possible.

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  • Partners looking for a better platform or more autonomy who successfully transitioned to firms where they could grow their practice.

For attorneys who think their options are limited, Harrison Barnes has proven time and time again that opportunities exist—often in places they never expected.

Submit Your Resume Today – Start Your Career Transformation

If you want to explore new career opportunities, Harrison Barnes and BCG Attorney Search are your best resources. Whether you are looking for a BigLaw position, a boutique firm, or a move to a better work environment, Harrison’s expertise will help you take control of your future.

? Submit Your Resume Here to get started with Harrison Barnes today.

Alternative Summary

Harrison is the founder of BCG Attorney Search and several companies in the legal employment space that collectively gets thousands of attorneys jobs each year. Harrison’s writings about attorney careers and placement attract millions of reads each year. Harrison is widely considered the most successful recruiter in the United States and personally places multiple attorneys most weeks. His articles on legal search and placement are read by attorneys, law students and others millions of times per year.

More about Harrison

About LawCrossing

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