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Executives with briefcases, file photo. REUTERS Jonathan Ernst

ABA launches new initiative to promote gender pay at law firms

3/18/2013 COMMENTS (1)

By Casey Sullivan

(Reuters) - In an effort to promote gender-pay equality at law firms, the American Bar Association has created a set of tools for state and local bar groups to organize conferences on the topic, the ABA said Friday.

The "toolkit," which is available through the ABA's website and is free, includes a program agenda, PowerPoint slideshow and handout materials for bar leaders to educate law firms about ensuring equal pay.

As proposed, the conferences run either an hour-and-a half or two-and-a-half hours and feature a keynote speaker addressing topics such as "Challenges to achieving pay equity" and "Effect of gender bias in compensation decisions." The ABA toolkit eventually will provide suggestions and contact information for appropriate for speakers, though those names are not yet available.

The ABA introduced the guide in response to recent surveys that have shown women lawyers continuing to lag behind men in both pay and employment, said ABA president Laurel Bellows.

A 2012 partner compensation survey by legal recruiting firm Major Lindsey & Africa, with data from 2,200 law firm partners, said that male partner compensation averaged $734,000 compared to female partner pay of $497,000 last year. The pay gap widened from 2010, the survey said, when male partners made $675,000 and female partners made $513,000 on average.

The initiative is meant to spark dialogue among law firm leaders about possible changes to their compensation and hiring models, said Bellows. "I think almost every law firm compensation policy could use some tweaks," she said.

The complex issue of gender equality in pay is not new to law firms and has been widely discussed throughout the legal industry. But Robyn Crowther, a partner at law firm Caldwell Leslie, said she thought conferences on gender pay inequality would help remind law firms that the issue persists.

"I think it is easy for each firm to justify its own compensation decisions on an individual basis and only in the larger picture do the inequities appear," said Crowther.

Law firms are beginning to focus on pay inequality now because their female employment rates have not kept pace with those of in-house legal departments at corporations -- a factor which could affect their business relationships with clients, said Sabina Lippman, a legal expert who has written editorials on the subject. By staffing and promoting women, law firm can build working relationships with females in those in-house roles, Lippman said.

Changes law firms might consider that could improve pay equality include requiring a specific number of women to be seated on executive or compensation committees, incentivizing partners to mentor young female lawyers and encouraging partners to share origination credit, said lawyers and legal experts contacted by Reuters.

Robin Cohen, the head of the insurance recovery group at Kasowitz Benson Torres & Friedman, said she had attended client pitches at companies with female general counsels where competing law firms had sent all-male teams to make the presentation. The competing firms were operating at a disadvantage, Cohen said.

"I think women general counsels, if they can, they like to help women," Cohen said.

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Comments (1)

4/11/2013 8:16:48 AM by BretBate

Here is a radical idea. Adopt an objective compensation system and let the chips fall where they may. An attorney should not make more because she is a female, he is a minority, she is gay, or he is a straight religious white guy. They should be paid based on production ($ billed, clients generated, firm/community involvement). That avoids favoritism and avoids discrimination in any form. If it ok to "help women" then it must be ok to help the guy who looks like me or goes to the same church I do. Discrimination is discrimination regardless of who is practicing it. Our firm is 50% women, however we make no effort to "hire women" or any other group. We hire good attorneys and have a compensation system which allows each attorney to set their own schedule. What we find is that some women attorneys are much more willing to skip an extra bonus to have a better work/life balance. The freedom for each attorney to find their own "success" is what we really should be advancing.


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