Big law - salaries

[Anonymous]

Anonymous wrote:DH is an equity partner at a smallish-med firm and in a typical year he brings home nearly 50% of the revenue he generates. They have different “buckets” for credit of who originates, who is responsible for, and who actually bills the work. So if you brought the client in, but DH actually managed the deal and did a lot of the billing (due to subject matter knowledge) you would only get a portion of the credit.

Also, how much of the work has actually been done OP? Sounds like some of the work is occurring in the future which would not count. The money has to be collected first. You sound new to the law firm world - did you come from Gov?

Sorry didn't answer the whole question. I am manage the relationship and do all the bills. I do some of the actual billable work but also farm out billable work due to subject matter expertise. Full relationship goes through me however. I go to clients office once a quarter, have weekly status call meetings, do the presentations to the GC, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:DH is an equity partner at a smallish-med firm and in a typical year he brings home nearly 50% of the revenue he generates. They have different “buckets” for credit of who originates, who is responsible for, and who actually bills the work. So if you brought the client in, but DH actually managed the deal and did a lot of the billing (due to subject matter knowledge) you would only get a portion of the credit.

Also, how much of the work has actually been done OP? Sounds like some of the work is occurring in the future which would not count. The money has to be collected first. You sound new to the law firm world - did you come from Gov?

Sorry didn't answer the whole question. I am manage the relationship and do all the bills. I do some of the actual billable work but also farm out billable work due to subject matter expertise. Full relationship goes through me however. I go to clients office once a quarter, have weekly status call meetings, do the presentations to the GC, etc.

All firms are slightly different but you are going to get the most income from the work that you actually bill/do yourself. Then you will get a smaller portion of work you manage or originate. If you originate, manage and bill the same work, you will get the highest percentage.

Most “big law” firms have a billing system where you can go in and see what “credit” has been assigned to you. DH knows what he will be paid long before the actual deposit hits. Sounds like you didn’t come through as a law firm associate which may be why it’s all so confusing to you. Non equity partners still get bonuses rather than a distribution and that amount is discretionary. If they don’t think you are likely to leave, they may feel like what they are paying you is enough, especially if you came from a lower paying Government or Military job.

[Anonymous]

Anonymous wrote:I’m confused why firm’s wouldn’t want to keep someone who originates $4million a year and therefore is clearly profitable for them.

The same happened to my partner. Because they have terrible business models.

[Anonymous]

Anonymous wrote:I’m confused why firm’s wouldn’t want to keep someone who originates $4million a year and therefore is clearly profitable for them.

Because it's a Boomer Ponzi scheme and comp is changing.

[Anonymous]

When my DH was a non-equity partner (w2 employee) and brought in 3m, but “only” billed 1500ish hours, he made 500-600k/year. Those numbers are probably the lowest acceptable origination figures to get pushed through to equity at his firm. An equity partner would probably have made 1m off that book but there are a lot more costs associated with being an equity partner (tax structure, insurance costs, buy-in, etc.) so total comp probably is really about the same.

[Anonymous]

Interestingly I am a K1 employee not a W2 employee. I have had multiple conversations with group leaders/firm leaders who told me it was typical to have lower billable hours as I was transitioning my practice from billing all of the work to bringing in the work. But I do know that my billable hours are low! Which is why I am nervous.

[Anonymous]

The average gross billings of each of the firms in the V100 is around $1.4 billion. So in context 3 to 4 million isn’t much. And with only billing 1200 hours? I’d be worried too

[Anonymous]

Anonymous wrote:When my DH was a non-equity partner (w2 employee) and brought in 3m, but “only” billed 1500ish hours, he made 500-600k/year. Those numbers are probably the lowest acceptable origination figures to get pushed through to equity at his firm. An equity partner would probably have made 1m off that book but there are a lot more costs associated with being an equity partner (tax structure, insurance costs, buy-in, etc.) so total comp probably is really about the same.

Non equity partners and their spouses like to think it’s “about the same,” but as someone who has been in both positions, I can assure you it isn’t. You want to be an equity partner.

[Anonymous]

25-33% of what you originate.

[Anonymous]

Anonymous wrote:25-33% of what you originate.

Not if you aren’t managing or billing on that work.

OP, if no one has spoken to you about your work being too little, it’s probably fine. No need to be nervous if nothing has actually happened. Did you come in as a partner, or have you been at a law firm since law school?

[Anonymous]

Anonymous wrote:

Anonymous wrote:25-33% of what you originate.

Not if you aren’t managing or billing on that work.

OP, if no one has spoken to you about your work being too little, it’s probably fine. No need to be nervous if nothing has actually happened. Did you come in as a partner, or have you been at a law firm since law school?

At a law firm since law school. Second firm. Only 2nd year as a non-equity partner.

As an associate always billed between 1900-2200 per year. First year non-equity partner still hit 1800 hours. But deals are SLOW this year and I have been trying to drum up my own clients/business this year a lot so have been traveling a lot.

[Anonymous]

Anonymous wrote:

Anonymous wrote:When my DH was a non-equity partner (w2 employee) and brought in 3m, but “only” billed 1500ish hours, he made 500-600k/year. Those numbers are probably the lowest acceptable origination figures to get pushed through to equity at his firm. An equity partner would probably have made 1m off that book but there are a lot more costs associated with being an equity partner (tax structure, insurance costs, buy-in, etc.) so total comp probably is really about the same.

Non equity partners and their spouses like to think it’s “about the same,” but as someone who has been in both positions, I can assure you it isn’t. You want to be an equity partner.

Your snarky reply is not necessary. I understand how it works and I was merely commenting on the asked question and used numbers specifically for total comp purposes in one particular year, and purposely leaving current personal info out.

[Anonymous]

Anonymous wrote:If you are in a V100 firm and bring in between $3-4 million a year how much would you expect to be paid?

I am an attorney but not big law - genuine question: shouldn't you know how much you will be paid? or at least have an idea? is this someone speculating about someone else's salary?

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you are in a V100 firm and bring in between $3-4 million a year how much would you expect to be paid?

I am an attorney but not big law - genuine question: shouldn't you know how much you will be paid? or at least have an idea? is this someone speculating about someone else's salary?

I'm guessing OP is a wife who thinks her husband should be making more.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When my DH was a non-equity partner (w2 employee) and brought in 3m, but “only” billed 1500ish hours, he made 500-600k/year. Those numbers are probably the lowest acceptable origination figures to get pushed through to equity at his firm. An equity partner would probably have made 1m off that book but there are a lot more costs associated with being an equity partner (tax structure, insurance costs, buy-in, etc.) so total comp probably is really about the same.

Non equity partners and their spouses like to think it’s “about the same,” but as someone who has been in both positions, I can assure you it isn’t. You want to be an equity partner.

Your snarky reply is not necessary. I understand how it works and I was merely commenting on the asked question and used numbers specifically for total comp purposes in one particular year, and purposely leaving current personal info out.

But you were wrong.