Ask A Mentor: How Should Departing Partners Approach Pay?
Sabina Lippman shares her insights into the nuances of navigating compensation as a lateral.
Navigating compensation issues while leaving a BigLaw firm can be complex, particularly with the risk of clawbacks and breakage. Sabina Lippman explains that some firms retain a portion of compensation or bonuses as a retention tool, leading to potential forfeitures if a partner leaves before payouts. Lippman advises reviewing your partnership agreement with an ethics lawyer to fully understand any potential losses. She also suggests negotiating with the prospective firm to cover some of the forfeited compensation, though this requires careful balancing. When giving notice, maintaining good relations with your current firm is crucial to avoid triggering punitive measures. Lippman recommends following the partnership agreement, assisting with client collections, and handling your departure professionally to minimize conflicts. Ultimately, while breakage may be unavoidable, careful planning and sensitive handling can mitigate its impact.
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