Why do partners lateral "down"? Forum

[Anonymous User]

I see this fairly often, partners lateral from a V10 to like a V50 or below. What's the story behind it?

When it's a senior doing it I assume they were sort of pushed out at the V10 and/or were given to believe that partnership is on the table at the lower ranked firm. But what's the equivalent benefit for a partner? Or is it just nonequity partners doing it?

[Wanderingdrock]

Money. They were offered more money at the other firm, they felt their practice would be better supported at the other firm (so they could make more money), or their work is drying up at the former firm and they think they can get more work (to make more money) at the other firm.

[jdkale]

You forgot one more possibility: that they were asked to leave because they were not making enough money which also happens. "The answer to all of your questions is money." - Don Ohlmeyer

[kaiser]

You have to understand that, past a certain point, the firm rankings and prestige lists sort of fall further and further among the list of considerations when planning out your career future. Once you have enough experience, most people stop thinking of firm rankings like some sort of ladder to climb (or on the flipside, to drop down on). Of course, there are some people who always remain prestige and ranking-focused, but that becomes much more rare as you move along.

As to why partners may leave for a lower ranked firm, it could be for a number of reasons. As someone said, its often just a matter of money. Or perhaps the partner was offered a role as a practice group leader in the new firm. Maybe they see the new firm as a better long-term cultural fit. Perhaps the new firm will allow them to build upon a particular speciality that their current firm is shifting away from to some extent. And these are just the ones I can think of off the top of my head.

[BigLawPartner]

You have to understand that, past a certain point, the firm rankings and prestige lists sort of fall further and further among the list of considerations when planning out your career future. Once you have enough experience, most people stop thinking of firm rankings like some sort of ladder to climb (or on the flipside, to drop down on). Of course, there are some people who always remain prestige and ranking-focused, but that becomes much more rare as you move along.

As to why partners may leave for a lower ranked firm, it could be for a number of reasons. As someone said, its often just a matter of money. Or perhaps the partner was offered a role as a practice group leader in the new firm. Maybe they see the new firm as a better long-term cultural fit. Perhaps the new firm will allow them to build upon a particular speciality that their current firm is shifting away from to some extent. And these are just the ones I can think of off the top of my head.

All of these, and sometimes due to conflict issues as well.

[Anonymous User]

Biglaw partner. I agree with the last two posts. Rates can also be a factor - I have seen people “lateral down” to keep rate sensitive clients who would otherwise find cheaper counsel.

[BigLawPartner]

Biglaw partner. I agree with the last two posts. Rates can also be a factor - I have seen people “lateral down” to keep rate sensitive clients who would otherwise find cheaper counsel.

Yep, have seen this with partners with speciality lit practices lateraling away from big corporate firms that charge high M & A rates that are not sustainable in that speciality lit practice.

[BansheeScream]

Lateraling down is such a funny term if you're using it to describe lateraling from one Vault ranked firm to another. There is some correlation between Vault rankings and profits per equity partner (or salary for non equity partners) but it doesn't track directly. Fried Frank for example (a V50) had over tree times the profits per equity partner as Jones Day (A V30) in 2020. If you can make significantly more money working at a firm, do you really care what the associates surveyed for the Vault rankings think of that firm?

[existentialcrisis]

Lateraling down is such a funny term if you're using it to describe lateraling from one Vault ranked firm to another. There is some correlation between Vault rankings and profits per equity partner (or salary for non equity partners) but it doesn't track directly. Fried Frank for example (a V50) had over tree times the profits per equity partner as Jones Day (A V30) in 2020. If you can make significantly more money working at a firm, do you really care what the associates surveyed for the Vault rankings think of that firm?

High yield debt partners suffer massive prestige hits leaving Sidley for Cahill.