Ask A Mentor: How Should Departing Partners Approach Pay?

See all posts

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.

Additional Post

Are Counsel Ranks Getting ‘Squeezed’ as Nonequity and Associate Pay Grows?

Press

Law Firms Grapple With Nonequity Partner Pay ‘Friction’

Press

Simpson Partner Joins Ex-Jones Day M&A Leader in Move to Sidley

placements

KPMG Wants to Provide Legal Services in the US. Now All Eyes Are on Their Big Four Peers

Press

Can Law Firms Avoid Landing on ‘Enemy’ List During the Trump Administration? 

people

Why Hogan Lovells and Perkins Coie Reversed, Will Now Pay Out Special Bonuses to Associates

Press