Amid the era of large law firms increasingly fine-tuning their partner pay models to favour those with significant books of business, Covington & Burling stands apart. As one of a limited number of Am Law 100 firms, Covington & Burling does not employ billing or origination credits – a practice that typically rewards lawyers for the revenue from clients or matters they introduce to the firm. According to firm chair Doug Gibson, Covington’s compensation approach emphasises partners’ collective contributions to the firm’s operations, rather than rewarding individual client acquisition.
Some experts have pointed to potential risks associated with not tracking origination credits, arguing that it may discourage the pursuit of new business. However, Covington partners counter that this compensation structure fosters a stronger team-based ethos in the firm and plays a crucial role in enhancing its appeal to laterals looking for a firm-wide collaborative environment, rather than individualistic financial incentives.
This distinctive approach seen in Covington perhaps represents a broader shift from traditional reward models, thus inviting further conversations about managing and rewarding partner contributions for the benefit of the global legal sector.
To learn more about Covington’s unique approach to partner compensation, visit The National Law Journal.