Widening Partner Pay Spread Spurs Tensions and Law Firm Instability, Consultant Says
The pay spread between the top- and lowest-paid partners is widening, a phenomenon that could lead to more partner defections and law firm splits, a legal consultant says.
Partner tensions are increasing along with the pay gap, says Kristin Stark, a San Francisco-based consultant with Hildebrandt Baker Robbins. The Recorder spoke with Stark and published her thoughts in a Q-and-A interview.
Before the recession, the typical high-to-low partner pay spread was typically 5-to-1, Stark said. Now it’s often 10-to-1, or even 12-to-1. The result is an environment of haves and have-nots within partner ranks.
Stark told the Recorder that the pay gap could create “instability” at law firms. “We might see increased lateral movement and potential splits or break-offs of some high demand practice groups,” she said. “We’re going to see the better groups walk out the door.”
