Consultant sees 'pervasive' trimming of BigLaw equity partners
Shearman & Sterling has acknowledged plans to de-equitize some partners, but it’s not the only firm confronting the issue.
Legal consultant Peter Zeughauser tells the Wall Street Journal (sub. req.) there has been “pervasive” trimming of partners in the nation’s top 100 law firms for the past year and a half. In terms of billable hours, he said, “There are a lot of firms that have seriously underperforming partners.”
The article also cites an American Lawyer survey of law firm leaders late last year that found 56 percent planned to de-equitize partners and 67 percent planned to ask some partners to leave.
Shearman senior partner Creighton Condon told the Wall Street Journal the firm hopes partners will look at de-equitization “as the best path forward for the business.” Though demoted partners will make less money, they will still be eligible for bonuses, he said.