Reply to If you have been a biglaw partner for 10+ years, how much wealth have you accumulated?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It's hard to stack coins until the line between oppressor and oppressed is crossed. Depending on the individual, that doesn't happen until late 40s (for those who went straight through) or 50s or later (for those who took a more circuitous route, such as spending a lot of time in government). Only senior partners, esp big rainmakers, make a lot more than they bring in. Many relationships are institutional, and only are inherited late in one's career.  Biglaw is not a path to great riches.  Don't get me wrong, it's plenty comfortable.[b] But only a small handful get to one percent wealth (currently around $12m in net worth) through law[/b].[/quote]

This.  It can be a good life, but not big money.  Every law firm partner I know doesn’t want their kid to go into law.[/quote]

Perhaps but I still think that biglaw is one of the best risk adjusted careers if financial success is the goal.  We can all decide whether financial success is the right goal but let's compare biglaw to investment banking.  Certainly a decade or two ago investment banking would have hands-down been the right career path to make a lot of money.  These days a lot of bulge bracket Managing Directors are probably in the $1m-$3m range.  However, the career risk they have is much greater than in biglaw.  Biglaw firms while increasingly cut throat still doesn't compare to investment banking--most MD's careers are over by 50.  If you're over 50 in investment banking you either made it to the very top (think top management of a major investment bank) or you've been pushed out working at a boutique where it's completely eat what you kill.

The chance of making MD is no better than making partner (perhaps worse), the time you get to stay MD vs stay partner is much worse, and then the market cycle driven layoffs are more intense than in law.  A good typical biglaw partner can practice well into his/her 50s perhaps 60s and then collect on a pension payout for years.  So the bankers might make a little more as associates, VPs, directors (% wise bigger difference but compared to making partner in biglaw or MD in investment banking the cumulative differences are probably not much more than a year or two of comp for an MD/partner), make MD in their mid 30s (perhaps a couple years earlier) and then flame out typically within 10 years or less.[/quote]

Seems hard to believe.  Would you rather be a senior banker at Goldman Sachs or a senior partner at Skadden, Cravath, etc?  Do others really believe this?[/quote]

I know, I thought that was weird too.

In terms of wealth, you're talking 10-20M (law) vs. 100 millions (GS).[/quote]

How do you get to 100 millions at GS?  Those were either pre-IPO partners.  I don't think anyone at GS can get to 100s of millions unless you are senior management (i.e. top 10 perhaps).  Your run of the mill Managing Director doesn't stand a chance.[/quote]

Of course I am talking senior management. So are the people who are talking about senior management at law firms. Again it's a case of 10-20M vs. 100M.[/quote]

Sure, if you are top 25 at GS you will probably be worth $100m+ (and get there in your late 40s and 50s) and compared to top 25 in biglaw that's a major advantage--my guess is $50m+ (probably get there in your 50s).  Goldman has about 35k employees and 2k Managing Directors or ratio of 17.5:1.  There are roughly 4k employees at Skadden Arps and 400 partners or 10:1 ratio.  An MD title is roughly comparable to a partner title--at the junior level they are both considered "non-equity" in that GS also has a PMD (participating managing director) title at the highest level of which there are roughly 500 or so--comparable to the top 50 partners at Skadden perhaps.

My guess is your typical MD at GS is making $1m-$3m annually with a good sized chunk (perhaps at the higher end over 50%) of that in restricted stock that vests over time (so not immediately available).  Given the ups & downs/layoff risks, the most likely significantly shorter career lifespan, lack of pension, etc the point is that being a partner at a biglaw firm is perhaps a better probability risk weighted career choice than investment banking.  That is not something that most would believe...[/quote]

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