Will I Become a Shareholder?

With today’s IPO of the Australian law firm, Slater & Gordon, law firm associates everywhere now have reason to hope for alternatives to the “will I make partner” debate. (I’ve previously discussed some of the myths behind this debate here.) The potential for shareholder status creates a significant incentive for associate and partner loyalty and thus a disincentive to lateral movement. This is great for firms that want to create a more solid economic basis for future growth – though not necessarily ideal for Lawcruiters. There is a fair amount that has been written on this topic, and much more to follow given the potential legal market reforms, in the UK embodied in the report of the Clementi commission contemplating, among other things, equity ownership of law firms by non-lawyers. We are still far away from this in the US - and those who want to know why would do well to read this paper by Bruce MacEwen of Adam Smith Esq., Prof. Mitt Regan of Georgetown University and Prof. Larry Ribstein of the University of Illinois College of Law. Much more on this topic to follow.