Under 1-tier Structure, DLA's Equity Partner Count Jumps from 300 to 670
With the February free fall still reverberating throughout the legal world, we thought we’d check in with a group of lawyers who anted up as much as $150,000 for job security at DLA Piper this winter. To strengthen the global firm’s financial position in the struggling economy, DLA’s partners “overwhelmingly approved” a change to a one-tier partnership, effective Jan. 1, according to a firm spokesman.
The question: How many nonequity “income” partners balked at having to pony up $150,000? The answer: practically none.
Nearly all of the firm’s former nonequity partners have committed a capital contribution to the firm, DLA Piper spokesman Jason Costa told the ABA Journal. The number of partners that have defected since the partner vote is so minute that it is not possible to distinguish those who may have left because of the structure change from normal law firm churn, Costa said.
As for the $150,000, “the amount of the capital contribution varied from partner to partner, depending on a number of factors, including seniority,” Costa wrote in an e-mail. The previously reported “$150,000 amount is on the high end of the range and is above what most partners were asked to contribute.” Costa added that the firm has made every effort to assist new equity partners who are making capital contributions but did not elaborate further.
DLA Piper presently has 670 equity partners, more than double its pre-restructuring total of 300. ABAJournal.com reported that 275 nonequity partners were invited to make capital contributions, and the the firm announced 53 lawyers were promoted to partner in January. The megafirm cut approximately 80 associates and 100 staff in February.
