Partner v. Associate Pay Cuts Forum

[Anonymous User]

I'm at a firm that has cut associate pay and has supposedly cut partner withdrawals significantly more; however, we've had significant associate attrition (think 50% of associates in some offices leaving) but no partners leaving. This smells fishy. The firm's message has consistently been that partners are carrying the brunt of the load, with withdrawals amounting to ~50% reduction depending on their level. Is this reasonably suspect? I'd expect partners to carry their clients to a different firm if this were true since associates have been migrating to greener pastures en mass. Is there any legal/contractual obligation to transparency here, or can they misrepresent compensation structure with no recourse?

[Sackboy]

They can do whatever the fuck they want when it comes to messaging towards associates, unfortunately.

[Anonymous User]

They can do whatever the fuck they want when it comes to messaging towards associates, unfortunately.

Sounds about right. Thanks!

[nixy]

I don’t know that the logic behind the assumption that partners would take clients to other firms based on cuts to their take really works, since presumably the partners are the ones deciding what will happen to their payments, while associates are stuck with what the partners decide. Plus a partner has bought in monetarily and I think deciding to leave and take your clients elsewhere is more complicated than an associate picking up and moving.

That said, I’m absolutely not vouching for the truth of the cuts they’re dealing with. Can’t imagine there’s any way to know that.

[Anonymous User]

I don’t know that the logic behind the assumption that partners would take clients to other firms based on cuts to their take really works, since presumably the partners are the ones deciding what will happen to their payments, while associates are stuck with what the partners decide. Plus a partner has bought in monetarily and I think deciding to leave and take your clients elsewhere is more complicated than an associate picking up and moving.

That said, I’m absolutely not vouching for the truth of the cuts they’re dealing with. Can’t imagine there’s any way to know that.

Very few partners actually have a say in how much money they get. It’s up to the exec committee or policy committee or whatever small group of partners a particular firm uses for such decisions.