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Being an income partner implies that you don’t get a partner draw, which only goes to real partners (i.e., the ones who (ostensibly at least) actually share in the firm’s profits and losses). Income partners are in all effects except title salaried employees. But case law is still developing around this.
Not always, though. @ LW at least income partners have units as well. The "income" denotes that they also get a guaranteed income (as the # of units is relatively small).cheaptilts wrote: ↑Sun Jun 13, 2021 11:28 amBeing an income partner implies that you don’t get a partner draw, which only goes to real partners (i.e., the ones who (ostensibly at least) actually share in the firm’s profits and losses). Income partners are in all effects except title salaried employees. But case law is still developing around this.
Latham income partners do get a small number of units (about 1/5 of a first year equity partner) together with a base salary in the mid-200's. They are part of the partners bonus pool as well and I think usually range in the low to mid 100's there. The poster above it pretty good on the range (low 600's - 800's all in).Anonymous User wrote: ↑Sun Jun 13, 2021 11:32 amNot always, though. @ LW at least income partners have units as well. The "income" denotes that they also get a guaranteed income (as the # of units is relatively small).cheaptilts wrote: ↑Sun Jun 13, 2021 11:28 amBeing an income partner implies that you don’t get a partner draw, which only goes to real partners (i.e., the ones who (ostensibly at least) actually share in the firm’s profits and losses). Income partners are in all effects except title salaried employees. But case law is still developing around this.
Does this mean you earn less as an income partner than you did as a senior associate?Anonymous User wrote: ↑Sun Jun 13, 2021 5:15 pmIncome partner at firm in the V25-V75 range. Base is mid-300s, all-in comp is mid-400s. We are not treated as employees - I pay my own estimated taxes, don't get subsidized health insurance (though still get to participate in the firm's group plan), etc.
Was thinking the same thing... that sounds like at best they are breaking even here.2013 wrote: ↑Sun Jun 13, 2021 5:51 pmDoes this mean you earn less as an income partner than you did as a senior associate?Anonymous User wrote: ↑Sun Jun 13, 2021 5:15 pmIncome partner at firm in the V25-V75 range. Base is mid-300s, all-in comp is mid-400s. We are not treated as employees - I pay my own estimated taxes, don't get subsidized health insurance (though still get to participate in the firm's group plan), etc.
When I was at Morgan Lewis I know more than a few income partners complained they made more as associates in the year before they made partner. I think income partners at the time made like $450k all in but had to pay their own healthcare and some of the other things mentioned above that W2 employees don't have to deal with, and I believe at the time a senior associate hitting their bonus made $440k.Anonymous User wrote: ↑Sun Jun 13, 2021 6:04 pmWas thinking the same thing... that sounds like at best they are breaking even here.2013 wrote: ↑Sun Jun 13, 2021 5:51 pmDoes this mean you earn less as an income partner than you did as a senior associate?Anonymous User wrote: ↑Sun Jun 13, 2021 5:15 pmIncome partner at firm in the V25-V75 range. Base is mid-300s, all-in comp is mid-400s. We are not treated as employees - I pay my own estimated taxes, don't get subsidized health insurance (though still get to participate in the firm's group plan), etc.
I find that very hard to believe. Do you mean starting for equity?Anonymous User wrote: ↑Sun Jun 13, 2021 10:01 pmI've heard of partners starting at 700k at Greenberg traurig.
I'm not sure if this is a troll or just a misinformed poster. Latham is the highest-ranked firm with non-equity partners. $800k is not average, it is high. And Jones Day has only a single partnership class (not income partners) and that average is dragged down by offices in small cities (Pittsburgh, Detroit) and overseas.Anonymous User wrote: ↑Sun Jun 13, 2021 12:41 amIncome partners make about $800k on average at good but not tippy top firms like Latham. This is an average of all income partners so, a starting income partner is likely around $600k on up.
Jones Day is more like $400k on up. That firm is a middle market TTT.
What nonsense. Jones Day, within its equity partner tier, has a percentage participant and non-percentage participant distinction that completely replicates the equity and income partner distinction at other law firms that have conventional naming. The only people who are stupid enough to be fooled by that distinction are the same idiots who are stupid enough to be fooled into thinking that Jones Day pays market salaries to any appreciable number of people in its major offices.Anonymous User wrote: ↑Sun Jun 13, 2021 10:36 pmI'm not sure if this is a troll or just a misinformed poster. Latham is the highest-ranked firm with non-equity partners. $800k is not average, it is high. And Jones Day has only a single partnership class (not income partners) and that average is dragged down by offices in small cities (Pittsburgh, Detroit) and overseas.Anonymous User wrote: ↑Sun Jun 13, 2021 12:41 amIncome partners make about $800k on average at good but not tippy top firms like Latham. This is an average of all income partners so, a starting income partner is likely around $600k on up.
Jones Day is more like $400k on up. That firm is a middle market TTT.
It helps the firm market you out to clients, and it helps you market yourself out to potential clients and a resume line.
It’s better than being paid 8th year salary for 2-4 years while you wait for equity partnership at a single tier partnership firm. My firm is only a single tier firm and we have 12th year associates still waiting for an openingAnonymous User wrote: ↑Mon Jun 14, 2021 3:32 pmIt helps the firm market you out to clients, and it helps you market yourself out to potential clients and a resume line.
From what I understand, junior income partners are pretty flat with associates. However, if you’re on path to equity, comp starts pushing closer to starting equity partner comp (which usually starts around $1M at my V30). So thriving income partners might see closer to $750K, for instance.
This is what's wrong with this profession. Income partners make between $400k and 800k a year and somehow that's depressing? Even if you never make equity partner, you're talking income of $12 to $24 mil over the rest of your career. How in the world is that depressing?