Two-Tier Partnerships
The fear behind promotion decisions of every sort is that the wrong decision will somehow edge the firm or the practice group toward mediocrity. The attorney who should have been promoted to equity partner, but was not, will leave the firm and contribute to the success of a competitor. The attorney who should have left the firm, but was promoted, will remain either as an equity partner, diluting the energy of the partnership, or as a non-equity partner, acting as a weight on rising associates. According to this line of thought, these incorrect decisions ultimately contribute to the deterioration of client relationships which then encourages the departure of high performing attorneys. As a result, the firm enters a downward spiral exacerbated by aggressive competitors and unforgiving clients. The fear of this downward spiral is what encourages equity partners to want to draw a bright line between owners and non-owners, but determining the exact nature of this bright line is a truly formidable challenge.
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