Posted Aug 08, 2012 11:19 am CDT
Greenberg Traurig is raising $24 million with a capital call.
The law firm announced the plan to raise more money from equity shareholders in a telephone meeting last month, the Daily Business Review reports. It’s the first call for additional money in more than a decade.
The partners will pay amounts ranging from 1 percent to 5 percent of their salaries, according to an unidentified shareholder who spoke with the publication. The lowest earners will pay the lowest percentage and the top earners the highest percentage. The money will be paid in two installments, one in 2012 and the other in 2013, an unidentified partner said.
Greenberg’s chief executive officer, Richard Rosenbaum, confirmed the plan to “add to our equity cushion” in a statement issued to the Daily Business Review. Rosenbaum said the capital call is a response to “current uncertainty in U.S. and global markets” and the amounts paid by each shareholder will be modest.
“There was no current cash need or other requirement giving rise to this decision, one which is fully consistent with our conservative financial management and with what other well-managed businesses are doing in the current global economic climate,” Rosenbaum said.
Law firm consultant Bill Brennan of Altman Weil told the publication “it’s not uncommon” to raise money in a capital call, and 30 percent of law firms schedule them regularly.