How To Keep Biglaw Partners Happy? Keep Them In The Dark When It Comes To Their Money...
The 'black box' awaits as Biglaw firms consider making the shift for partner compensation.
Ed. note: Welcome to our daily feature, Quote of the Day.
The way it’s been explained to me by every firm that has a closed system is it is so much easier to keep people happy when they can’t see someone is making more than them even though they have more in originations.
— Recruiter Jeffrey Lowe, in comments given to the American Lawyer on why some Biglaw firms use a black-box compensation system for partners. This compensation model is in the news thanks to a recent decision by Paul Weiss to move its partners to a black box. Lowe offered that there may be “danger” in making such a move, as doing do may cause “fear and paranoia” among attorneys. “People choose to believe the worst and operate under that assumption,” he said.
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter and Threads or connect with her on LinkedIn.
