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Paying the piper

This is a somewhat embarrassing state of affairs for many firms that have chosen to follow this model. Hindsight has certainly shown this decision to prove an absolute nightmare for the equity partners in these firms, who must feel truly awful with their current pay packages. That said, I agree with the closing sentiments of this article: in a sluggish economy it is quite right that partners and staff alike should take the rough with the smooth. The problem here is that equity partners end up taking home less than some staff, which can only be described as a financial clanger on their part! Personally I would be very cross if I were to be rewarded less than my juniors, but perhaps this is a sign that in an economy that is a total mess, one cannot simply assume that with higher stature comes higher compensation. The horror of the situation will likely be felt for some time yet; I'm just glad I'm not a partner in one of these firms as I can imagine the reverberation from an empty wallet can be heard from quite a distance. What a disgraceful, putrid state of affairs!

29-Jul-2009

2:48 pm