Losing Prestige 20
Three weeks ago, I was offered a fifth year associate position at a smaller Dallas firm where – if I took it – I would be strongly considered for partnership in eighteen months. I’ve now decided to take the position, despite an immediate pay and prestige drop. I even turned in my two weeks notice today. Before I discuss the actual motivation behind the move, I’ve detailed the financial information below in a chart below.
At this juncture, there were two practical options, stay at my current firm or take the new job offer. At either firm, there is a chance that I don’t become a partner. For the sake of this explanation, I’ve ignored the likely fact that I would change firms if I didn’t become a partner.
| Current Firm – Partnership | Current Firm – No Partnership |
| Odds of Occurrence – 50% | Odds of Occurrence – 50% |
| Total Pay Through 15 Years – $6.54 M | Total Pay Through 15 Years – $3.15 M |
Value of Staying – $4.845 Million
| New Firm – Partnership | New Firm – No Partnership |
| Odds of Occurrence – 85% | Odds of Occurrence – 15% |
| Total Pay Through 15 Years – $5.16 M | Total Pay Through 15 Years – $2.48 M |
Value of Leaving – $4.758 Million
It might seem like I fudged the numbers to better justify my decision, but I honestly believe the percentages are somewhat accurate. Before I ran the numbers, I expected the numbers to be more divergent, favoring my current firm. I guess I’m trying to say that my motivation had little to do with money.
One attorney I spoke to about the move questioned whether it would yield more or less job security. The move up to the fifth year level does carry the risk that if I didn’t make partner in the next three years, I would be pushed out of the firm. I’m not overly concerned with this scenario. I’ve met with the twenty-two (!) partners at the firm and they each treated my eighteen months at the firm as an associate as a formality; partnership was nearly guaranteed. In fact, the firm opened their books to show me that they are in great financial shape. My current firm seems to be in fine shape as well – though I’m not privy to the specifics. I fully believe that I could stay on board for the coming years and make a reasonable run at partnership. Both firms bring a similar level of security.
Less money, similar job security, a firm name you will not hear outside of Texas. What the fuck is wrong with me? Ego. Do you know how many partners at decent commercial litigation firms are under 30? Zero.
And yeah, the work will be better. I’ll be in court, I’ll meet clients – all the bullshit law students cream themselves over. I’m not sure how I feel about this, though I imagine it will give me more legal shit to write about on the website.
I guess I need to change my banner to Life at 155…
So like… can I have your old job or wut?
Really enjoyed this
How I love you 160, I cannot say
Anyone see the difference between staying and making partnership? 1.5 million is a ton of money
I think Life at 160 analyzed this in an honest and open way. Making five million in fifteen years is a SHIT TON OF MONEY. Good move 160.
Moar shop talk.
I don’t know how much you can or care to go into this, but what makes the new firm so hot to make you a partner? From the sound of this post, you aren’t currently meeting with clients, so it doesn’t sound like you have a portable book. Do you bring some kind of special skills to the table?
I hope they’re not running some kind of bait-and-switch on you, but still, congratulations.
I have my name (though always under another name) on a few solid published opinions. I was the primary drafter of an argument that resulted in a very significant opinion from the Fifth Circuit. I wrote a practice guide around the opinion, which was relatively popular.
I’ve also written some popular articles about research cost control for widely read trade magazines.
I had a very good interview and I was honest about what I needed to take a position at the new firm – comparable long term money. I didn’t expect them to accomplish it by bumping me up the ladder, but it was a pleasant surprise.
I also hope they don’t fuck me over.
sounds dangerous
btw, income or equity?
If nobody’s talked to you about partnership at your current firm, you might be overestimating your odds of partnership at your current firm, thus making the move to the new firm a plus EV. Also, the way you describe it, the intangibles probably add more value to the move.
My current firm wouldn’t commit to putting me on partnership track this early – but they did say I was at the top of the list for the second year class. Managing partner was quite sad when I turned in my notice.
This seems like a huge mistake. What happens if you don’t make partner?
WHORE
Congrats. Seems like a pretty good opportunity from a financial standpoint, and being able to do real legal work sounds great (law student here). Hope it works out for you.
This is the kind of thing that all law students dream about…
Congrats.
false. clearly you’ve not read much john grisham. much cooler to win millions in a class action and sit on your ass for the rest of your life while it rains money around you.
seriously, it’s nobodies dream to sit an an office for fifteen years being someone’s bitch
+1 on the mobile version of the site. well done.
Yeah I’m liking the mobile version of L@160
It’s a good move. I was where you are 10 years ago. You’re not very likely to regret this. Congrats.