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An unhealthy obsession with PEP can ultimately kill a firm

Mark, This is right. Firms have exploded the myth that partnership was a prize worth waiting and working for. Budding partners must wonder why they are slaving away so many hours. When the Cravath model was set up it had a simplicity and a virtue. There were promises and commitments on both sides. The financial crisis has brought to a head that the model has over time lost its integrity. At least it is now explicit. Despite what the Lawyer leader is saying about equity partnerships surviving, I would doubt they are. For two reasons: the financial incentive to maintain PEP will persist; when ABS come partnership as a concept will begin to decline with increased corporatization of firms with the injection of external capital.

14-Sep-2010

12:57 pm