OPINION: Big Law's Perverse Incentive System

Law360, New York (February 19, 2016, 7:27 PM EST) -- The start of a new year is always a time for big changes in a law firm partner's life. Suddenly, lawyers get to meet all new people. Why? Because the start of the year is when laterals — partners and associates — start jumping firms. This is not due to exciting New Year's resolutions to meet new people or try out new places. No, it is instead due to law firms' odd and antiquated compensation structures. Law firms have created a perverse incentive system that hands out large checks at the end of the year and benefits no one — not clients, not associates, not partners and not even the firms themselves. The result is both a rush for exits once the ball drops and, potentially, a dangerous situation for any firm that had a surprisingly great year....

Law360 is on it, so you are, too.

A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.


A Law360 subscription includes features such as

  • Daily newsletters
  • Expert analysis
  • Mobile app
  • Advanced search
  • Judge information
  • Real-time alerts
  • 450K+ searchable archived articles

And more!

Experience Law360 today with a free 7-day trial.

Start Free Trial

Already a subscriber? Click here to login

Related Sections

Law Firms

Companies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!