How Law Firm Comp Plans Lose Future Leaders: The Morning Minute
The news and analysis you need to start your day.
October 16, 2023 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
INVESTING IN THE FUTURE - Law firms are tweaking partner compensation in response to competitive pressures, but one area that remains ripe for change is compensation linked to leadership achievements and performance. Many comp plans still in use today were created as early as the '80s, when firms had fewer competitors, more regional work and a higher quotient partners who dressed like Gordon Gekko. Industry consultants and recruiters told Law.com's Jessie Yount that these outdated plans fail to account for the realities of leading a modern law firm. That disconnect is a real problem, they said, because it risks making young lawyers feel increasingly disenchanted or disinterested in career longevity or leadership duties at a law firm.
REVVED-UP REVENUE - Speaking of law firm leaders, they're currently fretting over lagging realization rates, drooping demand and attorney disengagement. But how 'bout a little positivity on this Monday morning? As Law.com's Brenda Sapino Jeffreys reports, a new study shows legal professionals are bringing in nearly 75% more revenue than they did in 2016, adjusted for billing rate increases. In what it called a "staggering increase in workplace productivity," cloud-based legal technology provider Clio found in its 2023 Legal Trends report that legal professionals are working 25% more cases than in 2016, when the company's first report was published, and recording 35% more billable hours, as firms are collecting a higher proportion of revenue for each hour worked.
ON THE RADAR - Spin Master Corp., a children's entertainment company, has agreed to acquire Melissa & Doug, an early childhood brand, for $950 million in cash. The transaction, announced Oct. 11, is expected to close in the first quarter of 2024. Toronto-based Spin Master Corp. was advised by Torkin Manes and Pillsbury Winthrop Shaw Pittman. Melissa & Doug LLC, which is based in Wilton, Connecticut, was represented by a Fried, Frank, Harris, Shriver & Jacobson team including partners Adam Cohen and Steven Steinman. Sullivan & Cromwell represented Evercore, the financial adviser to Spin Master. The Sullivan & Cromwell team was led by partner Stephen M. Kotran.X Stay up on the latest state and federal litigation, as well as the latest corporate deals, with Law.com Radar.
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Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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