Description
In this Q&A video, Harrison Barnes provides candid insights into the dynamics of law firms, focusing on the sustainability of the associate-partner model and merit-based pay systems. He critiques the lack of loyalty within firms, especially at senior levels, where associates are often overlooked in favor of partners. Barnes references the example of Wachtell, a prestigious firm known for its unique culture and flat-fee pricing, and highlights industry-wide issues such as inflated time entries and the potential lack of merit-based advancement. He emphasizes that loyalty and fair compensation are often elusive in the legal profession, with firms prioritizing profits over long-term associate development.
Question:
Commentary is brutal, brutally honest, but I think you give too much credence to the associate-partner model. It is never sustainable for the associate. Any disappointment? I agree. I disagree with the premise that law firms are merit-based pay systems. The attorneys who rise to the top are the most committed to leadership’s views, a mix of corruption, superstition, and collective thinking.
Take Tel LI Lipton, supposedly the crown of prestige. Yet, when Twitter sued them over the bills, their masks slipped, and their time entries were revealed as complete nonsense. This isn’t an isolated case, but industry-wide. Have you found that there’s actually no reward for loyalty to these firms? That merit-based advancement is just another part of the pyramid scheme?
Answer:
Okay, Wachtell’s an interesting firm. They typically don't even hire laterally from recruiters. I don’t know if they ever have; they may have, but I don’t think so. They have their own unique culture. It’s a very good firm, exceptional. They handle the most important matters. They often do flat-fee pricing for mergers and things like that, as opposed to billing by the hour.
I don’t know about this thing where Twitter sued them over their bills. Yes, a lot of firms, and I can’t make a judgment about all of them because I don’t know what happened in that case. But yeah, many time entries in firms may be nonsense, meaning they’re making things up. I don’t know if that happened at Wachtell, but yes, a lot of people will do that. I talked earlier about a lot of the most successful attorneys making up their hours, which happens if you have a big enough client.
In terms of loyalty, yeah, when you get senior, there often is no loyalty, or if the work slows down, there's often no loyalty. The reason there's no loyalty when you get senior is that it’s not in the law firm’s best interest, a lot of times, for the partners to give you work. When you get to that position, it’s not in their best interest to give you work because your billing rate is close to the partners’. Clients would prefer to have the partner do the work as opposed to an associate. Also, the partners make more money when they do their own work. I talk to people about this every day.
