Law360 quotes Edwards Gibson Director in article: ‘Law Firms Weigh Secretive Pay Models To Keep Top Partners’

Edwards Gibson Director, Scott Gibson, has been quoted in the Law360 article ‘Law Firms Weigh Secretive Pay Models To Keep Top Partners’, by Marialuisa Taddia, which explores the growing use of “black-box” compensation systems in law firms.

The article examines how traditional partnership models are evolving as firms compete for talent and profitability, with Scott reflecting that this shift to more opaque structures reflect an increasing corporatisation of law firms, where partners are becoming less like owners of the business and more like senior employees of corporates.

The piece highlights the flexibility of opaque pay systems, with Scott observing that they allow firms to operate with “a much wider equity spread,” meaning the title of equity partner can be offered more broadly while still paying individuals different amounts depending on performance; this is important as Scott notes "it didn't matter in the old days when everybody else was an all-equity partnership, but it matters now when they're competing with other firms [using two-tier structures]".

However, the article also acknowledges the potential downsides, as it may create distrust among some partners. Drawing on Edwards Gibson’s market insight, Scott acknowledges “some lawyers will not go anywhere near a firm with a black-box compensation structure.”

Read the full Law360 article (paywall) here