Super frustrated re dh’s salary

[Anonymous]

My husband works extremely hard. He is a law partner and has put in extremely long hours every year and is usually compensated well for his work. He also does a lot of special things for his firm. Last year was a bad year for the firm because the corporate side (he isn’t a corporate lawyer) over-hired in 2020
& 2021) and overall profits were down 20%. Dh billed in the top 10% of partners in his practice area and top 2% of all partners and yet he just learned that his bonus and overall comp are going down 25% and he’s being moved down a level of partnership. He is really upset, questioning all his choices, etc.
I have no one I can talk to about this irl. I’m sad for him, worried about our expenses, and I know he is worried about his job security.
And yes, I do have my own job but fortunately I have a lot of job security. Unfortunately I also make a lot less than he does.

[Anonymous]

why can't you talk to anyone? you would be surprised what some people might have gone through including the exact same thing.

[Anonymous]

Does your husband have his own clients or is he just doing work for other partners clients where they get most of the credit? The usual answer for a partner is to leave the firm and join a new firm. Your husband will have to do an honest assessment of which clients he can bring with him, though, as this will be key.

[Anonymous]

So you didn't save all that partner money he made?

[Anonymous]

How long has DH been a partner? Do you usually bank his bonus and live off both of your salaries or did you increase your expenses based on expected bonuses? How much have you saved?

[Anonymous]

Retired big law partner here. I hate to say this, but the only “special things” that matter to management in down years are clients and hours - in that order. It’s an unforgiving business.

[Anonymous]

My DH is a big law partner and one thing I've learned over the years is that a lot of very good lawyers are very bad businesspersons. And that firm management is HIGHLY political.

If your DH is one of the top billers in the firm, he shouldn't be demoted and punished financially. Something else is going on.

I'd suggest he reach out to headhunters, see what's out there, and consider other firms.

[Anonymous]

Anonymous wrote:Does your husband have his own clients or is he just doing work for other partners clients where they get most of the credit? The usual answer for a partner is to leave the firm and join a new firm. Your husband will have to do an honest assessment of which clients he can bring with him, though, as this will be key.

This. If your husband is that extraordinary, he walks and takes his book with him

[Anonymous]

I’m a lawyer but gave up big law for a government gig long ago. I’ve had many friends (partners) either “softly” pushed out or living in fear for a few years until things turned around. The trajectory your husband is on sounds like a soft push out. He should leave now with dignity. You are working, which is good, but your family will need to figure out how to get by on less money until he lands a better position. Also it’s not tenable to stay at a place that sucks you dry then cuts your bonus 25%. They do not have his back. He needs to leave.

[Anonymous]

Billed hours is not the same as collected hours. Could this be relevant ?

If your husband was as productive & as lucrative as you write, then there is another issue which has not been shared. Law firms love money & law firms love those with high billables and high collectibles. For some unstated reason, this firm does not value your husband's production as merited by the statements in your post.

My impression is that the law firm is encouraging your husband to look elsewhere.

OP:Your husband is the person with whom you should speak about this.

[Anonymous]

Anonymous wrote:My husband works extremely hard. He is a law partner and has put in extremely long hours every year and is usually compensated well for his work. He also does a lot of special things for his firm. Last year was a bad year for the firm because the corporate side (he isn’t a corporate lawyer) over-hired in 2020
& 2021) and overall profits were down 20%. Dh billed in the top 10% of partners in his practice area and top 2% of all partners and yet he just learned that his bonus and overall comp are going down 25% and he’s being moved down a level of partnership. He is really upset, questioning all his choices, etc.
I have no one I can talk to about this irl. I’m sad for him, worried about our expenses, and I know he is worried about his job security.
And yes, I do have my own job but fortunately I have a lot of job security. Unfortunately I also make a lot less than he does.

Does he have his OWN clients? Is he bringing in work? People don’t realize that a law firm is comprised of a bunch of small businesses (partners bringing in work). If you’re not doing that…

[Anonymous]

Anonymous wrote:

Anonymous wrote:My husband works extremely hard. He is a law partner and has put in extremely long hours every year and is usually compensated well for his work. He also does a lot of special things for his firm. Last year was a bad year for the firm because the corporate side (he isn’t a corporate lawyer) over-hired in 2020
& 2021) and overall profits were down 20%. Dh billed in the top 10% of partners in his practice area and top 2% of all partners and yet he just learned that his bonus and overall comp are going down 25% and he’s being moved down a level of partnership. He is really upset, questioning all his choices, etc.
I have no one I can talk to about this irl. I’m sad for him, worried about our expenses, and I know he is worried about his job security.
And yes, I do have my own job but fortunately I have a lot of job security. Unfortunately I also make a lot less than he does.

Does he have his OWN clients? Is he bringing in work? People don’t realize that a law firm is comprised of a bunch of small businesses (partners bringing in work). If you’re not doing that…

Not only that, but not all clients want to be serviced by someone billing at a partner's rate. Some prefer to work with one partner and have the bulk of the billable work done by lower cost associates or even staff. Part of a down turn is also clients pressing back against legal bills

[Anonymous]

Op - he’s in a very niche practice group and considered a star in his field. Unfortunately it’s not a practice group that makes a ton of money for any firm but he did collect well (95% I think last year). He works with a lot of different clients including his own and those he shares with partners in other practice areas. He does a ton of BD and markets himself a lot.
He’s involved in very important aspects of the firm (thinking hiring, pro Bono, diversity) in additional to billing a lot.
Yes, we have saved, and we will be ok. He asked if he was being softly pushed out and was told no, that this was simply an across the board reduction. His closest partner in his group was also down 25%.

[Anonymous]

You shouldn't have been spending to the limit of your income in the first place; counting on a bonus is always risky. If the firm profits went down by 20 percent, then partner comp will go down, because that's what it means to be a partner. (It also means that you need to bring in your own business, and that you need to be sure that your billables are also collectible.) You don't say whether most other partners' comp was reduced by about the same amount, or whether your husband was an outlier. If it's the latter, they are nudging him out the door.

[Anonymous]

Anonymous wrote:Op - he’s in a very niche practice group and considered a star in his field. Unfortunately it’s not a practice group that makes a ton of money for any firm but he did collect well (95% I think last year). He works with a lot of different clients including his own and those he shares with partners in other practice areas. He does a ton of BD and markets himself a lot.
He’s involved in very important aspects of the firm (thinking hiring, pro Bono, diversity) in additional to billing a lot.
Yes, we have saved, and we will be ok. He asked if he was being softly pushed out and was told no, that this was simply an across the board reduction. His closest partner in his group was also down 25%.

That is not necessarily a good sign. Is his group profitable and are their competitors that pay better or is it something that is a niche service that is expected from a big firm, but that isn't necessarily high value?