Lateral partner pay guarantees have a long history in Big Law compensation schemes. But some legal industry observers, including consultants and top industry recruiters, say they’ve seen more use of them in recent years, especially as guarantee controversies fade from memory.
Still, many agreed that the use of guaranteed compensation for laterals, in any form, is cyclical, based on the economic performance of firms and recruiting strategy, and it usually comes down to a firm’s decision over an individual lateral rather than a broad, firm-wide mandate.