Survey Shows 27 Percent Pay Gap for Top Women Equity Partners
Even "star" partners pay a big price for their gender, new research by Acritas found.
April 19, 2018 at 03:40 PM
3 minute read
If you're a leading woman equity partner at your firm, odds are you earn significantly less than your male counterparts, according to a survey of more than 1,750 lawyers in 51 countries by the market research firm Acritas.
In survey results released Thursday of equity partners who were independently nominated as ”stars” by senior in-house counsel, Acritas found that the mean average pay for male equity partners in that high-caliber group was 27 percent higher than for female equity partners.
“It is astonishing to see such a large gender pay gap at the equity partner level. For women that have achieved equity partner status, they should be facing a more equal playing field, but clearly this is not the case,” Acritas CEO Lisa Hart Shepherd said in a statement.
Notably, Acritas found a slightly smaller gender pay gap when comparing median pay, with male equity partners paid 19 percent more than their female counterparts.
But the data showed that “the gap still existed once practice areas had been taken into account,” Shepherd wrote in a follow-up email. A female equity partner working in the same country and practice area, and who made partner in the same year as her male counterpart, could still expect to earn $125,000 less, Acritas reported.
Acritas doesn't have prior years' data that is “sufficiently comparable” to determine if the gap has widened or shrunk in recent years, Shepherd said.
One obstacle to greater pay equity is a bias Acritas has identified in surveys: Women are less likely to be chosen to serve as lead partner on matters, Shepherd said. That trend drags down female partners' compensation because originations are taken into account in more than 80 percent of equity partners' pay, according to Acritas' results.
“Many of these compensation models encourage selfish and self-serving behaviors among 'rain maker' partners,” Shepherd said in an email. “Compensation models that encourage more hunting in packs and team-based relationship management will give opportunities for a more diverse team to be exposed to the client and their expertise showcased.”
It's not that origination should never be taken into account, Shepherd stressed, but firms should take a more “holistic” approach that includes things such as client feedback. “The more factors that are taken into account, the more fair the evaluation of individual contribution is seen to be,” she said.
And, she said, the industry needs to focus on promotions as much as pay.
“The issues go much further than pay alone. The pay gap, as we have shown, exists for like-for-like roles in the same practice areas—but it also arises because firms' cultures have not been conducive to encouraging the development and careers of women,” Shepherd said. “The scarcity of women in the most senior and highly paid roles is not helping this.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
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.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250