Friday, June 29, 2007
Story here. This could have huge, and not necessarily welcome, ramifications if it becomes widely adopted. My guess is that, in the short-term, Howrey is going to have real trouble recruiting new associates, and that will discourage other firms from following suit. On the other hand, if the Howrey partners find their profits-per-partner going up as opaque "merit" evaluations result in lower associate salaries (or higher salaries pegged entirely to much higher hours billed), other firms may well follow suit.