Legal News

Jenner & Block Strips Equity Status From 10 Partners

By Dan Slater

The expectation had always been that if associates worked like pack mules for seven or eight years, the stars among them would have a shot at being anointed an “equity partner,” who derives his or her income largely from the firm’s profits. Now, that climb has not only gotten longer — often nine years or more — but the ladder, once climbed, can be yanked away. — The Wall Street Journal, July 2007

So much for choosing law based on its job-security. The Chicago Tribune is reporting that Jenner & Block has told 10 partners in recent weeks that they will either have to give up their equity status or, in some cases, leave the firm.

“For some partners, there was an adjustment in status,” Anton Valukas, Jenner’s chairman, told the Law Blog. “We had record profits last year and record revenues. Our firm is larger this year than it was last year, and we’ve added 12 new equity partners within the last several months. The issue of personnel adjustments happens in the context of a law firm.” Valukas, who said the demotions were not due to the economy, declined to disclose the identity of the ousted partners.

Citing AmLaw, the Trib reports that the average profit per equity partner at Chicago-based Jenner was $760,000 in 2006, when the firm had 185 equity partners. The firm now has 163, according to Valukas. A couple of years ago, the firm created a second tier of partnership, known as non-equity partners, of which it now has 56.

Full post as published by Law Blog - WSJ.com on March 06, 2008 (boomark / email).