As law firms continue to offer significant compensation packages to associates, including bonuses that can push their earnings close to the half-million-dollar mark, counsel positions often find themselves in an increasingly precarious position. According to insights from Jeff Lowe, senior managing partner and market president for CenterPeak, a Washington, D.C., consulting firm, these legal professionals often end up in what is described as a “no man’s or woman’s land” when it comes to compensation.
The fundamental issue at hand is that counsel are typically senior lawyers who do not have the partner designation and consequently, do not carry the amount of business that partners typically bring to a firm. This lack of clientele leverage limits their ability to command higher salaries or move between firms with as much ease as those in associate or partner positions. The conundrum for many counsel is their seniority which prevents them from slotting back into associate roles, especially in firms with rigid lockstep pay models.
This dynamic leads to what some experts see as a squeezing out effect, where counsel find their advancement opportunities sharply limited, especially with the high compensation tiers being reached by associates. In law firms where business development and client relationships define career trajectory, counsel must often seek out firms that require their specific expertise or niche skills, making the job market even more challenging.
Staci Zaretsky, a senior editor at Above the Law, highlights this phenomenon in her recent discussion of the disparities and raises that counsel face in today’s market. You can read more of her observations on the full article on Above the Law.