Tag Archives: Lockstep

Origination Credit is a Mixed Bag

With increased competition among law firms, business development is a top priority. To maximize revenues, many—if not most—law firms incentivize rainmakers via compensation models which encourage business development. They track originations as a way to reward those who bring in the most business. Historically, however, the most profitable U.S. law firms never tracked originations. They…
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Show Me the Money!

Money shouldn’t be the primary motive for a career move, but it’s an important factor. In a down market, lawyers have little bargaining power; but in good times, law firms compete financially for the best and the brightest. Historically, elite New York law firms led the pack in associate salary increases, and other firms struggled…
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Is Lockstep Out of Step with the New Reality?

Most law firms, unlike other businesses, categorize associates by law school graduation year rather than level of expertise for purposes of hiring, compensation, and promotion. Until recently, the traditional lockstep model made some sense, assuming that associates who enter law practice at the same time gain like experience at similar firms. Class year designation, therefore,…
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Pumping Up Profits Per Partner

Law firm financial data seldom was discussed publicly before law became big business. Today, however, the legal press ranks the largest US law firms on the basis of gross revenues and other indicators such as revenues per lawyer and profits per partner. (See the American Lawyer’s annual AmLaw100 and 200 rankings and the National Law…
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