Partner Comp Systems and Competitive Advantage: Lessons From the Kirkland, Cravath, and Paul Weiss Lateral-Hiring Wars
What makes comp systems so insidious is that they're so hard to change.
January 26, 2024 at 03:39 PM
12 minute read
Lawyer Compensation - Law FirmThe original version of this story was published on The American Lawyer
To succeed at retaining and attracting partners, it's not enough to have high firm-average profit per equity partner (PEP). In addition, a firm's comp system must have wide enough a range, and be variegated enough, to match individual partners' comp with the economic contribution of their practices. Failure to do so undercompensates stronger performers and allows them to be lured away by competitors. Even firms with lower PEP but more variegated systems will be able to offer higher compensation.
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Law Firms Mentioned
- Kirkland & Ellis
- McDermott Will & Emery
- Gibson, Dunn & Crutcher
- Freshfields Bruckhaus Deringer
- Cleary Gottlieb Steen & Hamilton
- Paul, Weiss, Rifkind, Warton & Garrison
- Cravath, Swaine & Moore
- Ropes & Gray
- Cooley
- Latham & Watkins
- Davis Polk & Wardwell
- The Boston Consulting Group
- Circle Internet Financial
- Adobe
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