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 Industry consultants and recruiters told Law.com's Jessie Yount that these outdated plans fail to account for the realities of leading a modern law firm.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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