BigLaw firm will pay up to $20M to top partners, an amount needed 'to be at the big table'
Top partners at Simpson Thacher & Bartlett are expected to earn more than $20 million this year after the law firm adjusted its compensation structure. (Image from Shutterstock)
Top partners at Simpson Thacher & Bartlett are expected to earn more than $20 million this year after the law firm adjusted its compensation structure.
The spread between the highest- and lowest-paid equity partners is now 9-1 at Simpson Thacher, according to Law.com, which broke the story.
Bloomberg Law followed with a story.
The change was made “to attract and retain the best talent across our global platform,” said Alden Millard, a partner and chair of the firm’s executive committee, in a statement cited by the articles.
Partner recruiter Matthew Bersani told Law.com that firms have to pay up to $20 million “to be at the big table.”
Bersani cited reports that Paul, Weiss, Rifkind, Wharton & Garrison offered up to $20 million to hire three Kirkland & Ellis lawyers last year.
Paul Weiss proved that “you can make some arguably game-changing hires” if you adopt a secretive black-box compensation system and go to $20 million in pay, Bersani said.
Paul Weiss adopted a black-box compensation system for partners because of “a war for certain transactional talent” that requires high salaries, Brad Karp, chair of Paul Weiss, told Law.com in March. Knowledge of the salary differences “would gratuitously hurt and damage very valuable partners,” he said.
Simpson Thacher and Paul Weiss are also adding a nonequity partnership tier, according to Law.com.
