'It breeds mistrust' - Jones Day's black box pay system and poor communication blamed for City exits
US firm's London office has seen eight partner departures in as many months, including a number of practice heads
March 09, 2016 at 08:33 PM
4 minute read
Former partners at Jones Day say tensions around the firm's infamous lack of transparency over pay and a disconnection between the London office and the rest of the firm are to blame for the recent spate of UK partner exits.
The US giant has seen eight partners leave in eight months, including a number of practice heads.
The most recent departures were energy partner Paul Exley, real estate partner Iain Hindhaugh and Sebastian Orton, who was previously a partner but most recently worked as a counsel at Jones Day. All left last week.
Other partner exits since last August include private equity partner Weyinmi Popo, banking partner Dominic O'Brien, India partner Sumesh Sawhney, head of construction, Hamish Lal, employment head Jules Quinn and banking partner Bryan Conway.
As long as I'm getting paid what I think I'm worth why should I give a monkeys what someone down the corridor gets paid
The partners have joined a variety of firms including Orrick Herrington & Sutcliffe, Akin Gump Strauss Hauer & Feld, Baker Botts and King & Spalding.
Former partners say there is no single new driver for the mass exits. Instead, they point to the firm's longstanding secretive pay system and general disenchantment within the office as factors. Jones Day does not publish an associate pay scale and partners' remuneration is decided on a case-by-case basis by management.
One ex-partner previously based in the firm's London office said their were pros and cons to the system: "If you want people to work together, one thing that stops that is knowing the person down the hall from you earns $50,000 more.
"Money doesn't get in the way if you don't know what each other gets. However, the difficult bit is the relativities.
"There's no origination credit and no billing credit, and somehow the firm is meant to see what you have done and compensate you accordingly – how do you know that works? It breeds mistrust."
One current partner in the London office argued the system was "terrific". They said: "As long as I'm getting paid what I think I'm worth in the market why should I give a monkeys what someone down the corridor gets paid? It takes away a huge amount of bullshit."
Referring to how the firm credits its partners the Jones Day website states: "We do not believe that applying formulas or metrics to these complicated relationships is productive."
It adds that "a very small number of people" advise the firm's managing partner, Steve Brogan, on compensation rewarded to partners.
One ex-partner previously based in Jones Day's New York office added: "The firm prides itself on a black box system and thinks that its compensation system works better because people aren't always vying for better salaries."
There's no origination credit and no billing credit but somehow the firm is meant to see what you have done and compensate you accordingly – how do you know that works?
Former partners said that in addition to issues with pay the London office had also seen a number of partner demotions in recent years which have affected morale. This active management of partner performance is nothing new at the firm, with Legal Week reporting in 2009 that almost 10% of the US firm's London partnership had been demoted in this way, however one former partner said a number of demotions were made in January this year .
Multiple sources have also said the London office – the product of a merger with legacy City firm feels Gouldens in 2003 – is disconnected from the global firm.
One ex-partner said: "There was limited contact between the Washington HQ and London. The firm makes much of its so-called global integration but that didn't really seem to be the way it worked. It's easier for the firm to be more joined up in America."
With $1.85bn (£1.3m) in gross revenue in 2014, the firm placed 6th on The American Lawyer's 2015 Am Law 200 ranking.
Jones Day declined to comment.
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
© 2025 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 AllA new $180k high, job cut predictions and more BHS fallout – the best of Legal Week last week
3 minute readTop 10 UK firms outpace smaller peers with 5.7% revenue growth in 2015-16
Trending Stories
- 1No Two Wildfires Alike: Lawyers Take Different Legal Strategies in California
- 2Poop-Themed Dog Toy OK as Parody, but Still Tarnished Jack Daniel’s Brand, Court Says
- 3Meet the New President of NY's Association of Trial Court Jurists
- 4Lawyers' Phones Are Ringing: What Should Employers Do If ICE Raids Their Business?
- 5Freshfields Hires Ex-SEC Corporate Finance Director in Silicon Valley
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
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