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PARTNER MOVEMENT
By Arnold Keiser
In the past year there has been astonishing lateral movement with respect to partners across the nation. Firms like Bryan
Cave, Holland & Knight, Piper Rudnick, Hogan & Hartson and Greenberg Traurig have each hired 50 to 60 partners so far this
year.
Some via mergers and others like Greenberg Traurig mainly through aggressive individual partner recruiting.
Its been interesting to see that some firms in the past that did not consider laterals are now aggressively seeking them.
Given the accelerated movement of partners from one firm to another across the country, there is still a great reluctance
on the part of many to make a career move.
While many say, "I am always open to hearing about new opportunities", a large number of those who say they are open to change
are still reluctant to take advantage of the many opportunities available.
Search professionals are placing partners in new positions with much higher compensation, better client development environments,
more benefits and with better support staff.
Despite these great opportunities many do have concerns about making a move.
The question is, are partners concerns about making a change based on facts ?
Some say, "I'm happy where I am, I'm paid well and I like how I am treated". Certainly if an individual has convinced himself
that he is paid very well its hard to tell him or her otherwise. But, the fact is, there are many firms where a valued partner
would be treated well and in fact paid far better for their expertise, hard work and portable business.
Some may point to firm loyalty as a reason not to move. Loyalty cuts both ways. If a partner is being paid less than a competitor
firm would pay, what does that say about the loyalty of the firm one has been at for years ? It may sound odd to hear this,
but many partners are frankly underpaid intentionally or not.
Some say, I would only consider an in-house opportunity. There is the belief that in-house positions offer more interesting
work and easier hours.
In some cases that is true but in many cases it simply is not. Many in-house attorneys work excessive hours and can find themselves
doing work that is not very satisfying.
What is also generally true is that in-house positions simply pay far less than most law firm partner positions. In addition
competition for such positions is overwhelming because of the economy and a flood of applicants without partner qualifications.
Also, the fact is companies are laying people off all the time and often without notice. Thats not likely to happen to a partner
at a major firm.
A common concern among some partner candidates is that their clients wont move with the partner. This may be a reason for
concern. If the partner did not originate the client base or does not have a positive rapport these may be reasons for concern
but not always.
Any partner who has performed his services well and has maintained his client relationships in a quality fashion should have
minor difficulty bringing his clients with him or her as long as the client sees the partners new firm to be one with strong
expertise and a quality reputation.
The partners communication skills and an expertise in relationship building are critical. The partner will be able to minimize
lateral move concerns through open and forthright communication with current and prospective clients.
The fact is, in this current legal market there is more often than not, far more valid reasons to move than to stay.
Some partners convince themselves that they will not make more money at another firm. Partners are universally seeing major
increases today in compensation.
The following is a summary of good reasons to move and good reasons not to :
Valid Reasons To Make a Lateral Move :
Higher Compensation-For those committed to increasing their income making a lateral move will bring a serious increase in
income.
Better Support Staff- One benefit of making a lateral move is the quality of associates and support staff. Not all firms have
the very best people.
Better Cross-Selling Opportunities-One reason partners move is because they see more business development opportunities at
other firms from internal networking.
Joining A Firm With More Rainmakers-There is certainly a benefit to being in a firm where there are many partners bringing
in a lot of business. There are firms that rely too heavily on too few rainmakers.
Joining A Firm With Better Clientele-Obviously different firms attract clients with different Fortune 1000 rankings. This
does effect business development opportunities, profits and profits-per-partner calculations.
Attaining More Responsibilites- There are some partner candidates who seek a change in responsibilities. Change is often a
good thing and people do get bored with the same routine. Some upwardly mobile partners like the idea of taking on a greater
challenge which can also lead to more money.
An Opportunity With Less Responsibilities-There are some late in their career or some burnt out by too many responsibilities
who seek a somewhat less burdensome or complicated opportunity.
You Are Comfortable-Many people, including attorney partners, state that they are very comfortable in their current position.
This, is the very best reason to seek a new opportunity. Nothing in life can kill ones spirit, aliveness or zest for life
more than avoiding taking on new challenges or playing it safe. Life is short is not just a cliché. Its an unforgiving fact
! And none of knows just how short it will be.
Helen Keller said, "Security is mostly a superstition. It does not exist in nature nor do the children of men experience it
as a whole. Avoiding danger in the long run is no more safer than outright exposure. Life is either a daring adventure or
nothing !"
Valid Reasons Not To Make A Lateral Move :
Questionable Clients-If one's clients are on shaky ground or you simply have uncertain relationships with them, it is obvious
that you would be wise not to pursue a lateral move since losing any clients would put your new position in jeopardy.
A Potential Employer With Questionable Clients-Certainly no one would move to a new firm where the clients do not pay well,
are not performing well in their industries or who are difficult to deal with.
Low Billing Rate-For the most part major firms are not taking on partners whose billing rate is incompatible with their's.
Most major firms only hire partners with hourly billing rates from $ 400 to $ 625 per billable hour.
Insufficient Portable Business-Clearly, many major law firms will not consider a partner candidate with less than $ 800,000
in verifiable portable business. Generally when a candidate has the minimum they are expected to provide strong evidence to
show that the numbers will increase.
For those partners who are contemplating making a lateral move, now is a good time to do it. New partners are very much in
demand, firms are offering the largest compensation packages in history and the chances of finding desirable cross-selling
opportunities and other special conditions has never been better. You deserve the best right now and so does your family.
It is important to find and work with a quality partner recruiter who is committed to being your advocate.
Never work with a recruiter whose concerns are to merely service his or her law firm clients. This is a candidate's market
and you want to work with someone who will go to bat for you all the way.
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