Coasting Partners Beware: You Aren’t Out of the Woods Yet
A law firm consultant warns that there may be more partner ousters during the first half of 2010 to make way for promoted associates.
Thomas Clay of Altman Weil told the Fulton County Daily Report the economic climate is changing the law firm business model. That means loyal, hardworking associates who are not producing business are less likely to make partner. And some partners will also be feeling the heat.
“We are not out of the woods yet economically,” Clay told the Fulton County Daily Report. “Where do you go now? Rates cannot go up. Firms will need to get rid of nonproducers or those who don’t have value to make way for Joe-the-senior-associate who is phenomenal as compared to Bill-the-partner who is just coasting along. They’ll have to make room for young blood.”
Clay said the job picture is dreary for associates as well.
“Some [firms] are simply making no partners,” he told the legal publication. “Committees would ask several questions when considering someone for partner after hopefully winnowing down the field. ‘If we don’t make him/her partner what do we lose? Will he/she leave the firm if not made partner? Or say, Jim is not happy; if we make him partner, will he stay?’ “
Meanwhile, Michael Short, vice-president of consulting firm Hildebrandt Baker Robbins, told the Fulton County Daily Report that some firms are increasing partner buy-ins. “Some firms may take it out of the monthly draw over a certain number of years. Some that need the cash may suggest the new partner do business with a bank that has a relationship with the firm and it will hold the notes,” he said.
