Law Firms Demote Partners as Pressure Mounts Over Profits
by: Sara Randazzo
Oct 11, 2016
Click here to view the full article on WSJ.com
by: Sara Randazzo
Oct 11, 2016
Click here to view the full article on WSJ.com
TOPICS: Compensation
SUMMARY: Faced with client pressure to keep down costs and industry competition to achieve the highest profits, law firms now frequently assess which lawyers are worthy enough for the top rungs of partnership.
CLASSROOM APPLICATION: Based on the article, students can evaluate the compensation structure of law firms. Instructors can pose the question about why law firms are organized as partnerships, in which partners share in the revenues that each brings to the firm.
QUESTIONS:
1. (Introductory) During a decrease in demand for legal services, why do law firms demote partners?
2. (Advanced) Why are some lawyers valuable to a firm despite the limited revenues that bring to the partnership?
3. (Advanced) Why are law firms organized as partnerships in which partners share in the earnings of the firms?
1. (Introductory) During a decrease in demand for legal services, why do law firms demote partners?
2. (Advanced) Why are some lawyers valuable to a firm despite the limited revenues that bring to the partnership?
3. (Advanced) Why are law firms organized as partnerships in which partners share in the earnings of the firms?
Reviewed By: James Dearden, Lehigh University
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