2009 NAWL Law Firm Survey 2009 NAWL ® Law Firm Survey Stephanie Scharf, Ph.D., J.D., President, NAWL Foundation; Partner, Schoeman Updike Kaufman & Scharf Stephanie Scharf, Ph.D., J.D., President, NAWL Foundation; Partner, Schoeman Updike Kaufman & Scharf Lorraine Koc, General Counsel, Deb Shops, Inc; Former President, NAWL Lorraine Koc, General Counsel, Deb Shops, Inc; Former President, NAWL Cheryl Tama Oblander, Partner, Butler Rubin Saltarelli & Boyd LLP Cheryl Tama Oblander, Partner, Butler Rubin Saltarelli & Boyd LLP Marianne Trost, Owner of The Women Lawyers Coach LLC Marianne Trost, Owner of The Women Lawyers Coach LLC

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. Back-story to the NAWL Survey NAWL 2015 Challenge: double the numbers NAWL 2015 Challenge: double the numbers Create meaningful benchmarks, study reasons for advancement and leadership Create meaningful benchmarks, study reasons for advancement and leadership –E.g., national data about leadership, compensation, promotion, governance, business development, law firm policies and practices –Many law firm members on Survey Committee

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. Survey Content Compensation: what women/men earn and why women earn substantially less Compensation: what women/men earn and why women earn substantially less Impact of gender on leadership roles Impact of gender on leadership roles The effect of law firm structure on success for women (including identification of “mixed tier” firms) The effect of law firm structure on success for women (including identification of “mixed tier” firms) How the recent economic downturn has impacted women in firms How the recent economic downturn has impacted women in firms

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. Survey Content (Continued) What factors affect women’s chances of promotion into equity partnership and leadership roles What factors affect women’s chances of promotion into equity partnership and leadership roles –Rainmaking –Lateral moves –Variety of career development, mentoring programs –Part time employment –Billable hours –Progress for women of color

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. Design of the Annual Survey Longitudinal design Longitudinal design –Ending 4 th year, gearing up for 5 th ! –Core content/revolving content Objective indicators Objective indicators Focus on firms as a whole Focus on firms as a whole Aggregate analyses, confidentiality Aggregate analyses, confidentiality Enhance collection of sensitive data Enhance collection of sensitive data

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. Leadership: Stuck at Low Numbers Women are 16% of equity partners (with better numbers among newer partners) Women are 16% of equity partners (with better numbers among newer partners) Women comprise 15% of membership on highest governing committee Women comprise 15% of membership on highest governing committee Women are 6% of managing partners Women are 6% of managing partners

Advancement of Women into Equity Partnership Women in Law Firms – –First and Second Year Associates 48% – –Seventh Year 45% – –Of-Counsel 34% – –Non-Equity Partners 27% – –Equity Partners 16% Path to equity is longer for women than for men Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication.

The Gender Compensation Gap As in other Survey years, a noticeable gender gap – –Women equity partners make 88% of male equity partners (up 4% from 2006) (page 11 of report) – –Women non-equity partners make 92% of male non-equity partners, an 8% improvement since 2006 (page 11 of report) – –Women counsels make 89% of male counsels, relatively unchanged since 2006 (page 22 of report) – –Associate male and female pay is on par (page 12 of report) Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication.

Is the Compensation Gap Closing? (Continued) Gap continues to be greatest at the equity level – –Approximately $65,850 difference at typical firm (page 11 of report) – –Highest compensated lawyer at firm is male 99% of the time (page 10 of report) Unclear if recent improvement is real or a function of overall decreased law firm compensation Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication.

Rainmaking: It’s a Man’s World Gender of the top 10 rainmakers in firms Gender of the top 10 rainmakers in firms –Almost half of firms (46%) have no women rainmakers in top 10 –One third of firms (32%) have only 1 woman rainmaker in top 10 In other words, almost 80% of law firms have, at most, one woman in their top 10 rainmakers! In other words, almost 80% of law firms have, at most, one woman in their top 10 rainmakers!

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. Does Rainmaking Matter? Yes! As the number of women rainmakers increases, all women benefit Yes! As the number of women rainmakers increases, all women benefit No. women in Male/Female No. women in Male/Female top 10 rainmakers Differences in compensation top 10 rainmakers Differences in compensation None $81,000 less than men 1-2 women $56,000 less than men 3 or 4 women $11,000 more than men (but few firms)

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. Does Governance Matter? Yes! Firms with more than 15% women on their highest governing committee have less gender disparity in compensation among partners Yes! Firms with more than 15% women on their highest governing committee have less gender disparity in compensation among partners Male-Female Difference (Annual $$) Governing Committee Equity Non-Equity Higher proportion 56, , 000 Higher proportion 56, , 000 of women of women Lower proportion 70, , 000 Lower proportion 70, , 000 Imagine when women are 30% or 40% of HGCs! Imagine when women are 30% or 40% of HGCs!

The Market For Lateral Partners: Should She Stay Or Should She Go? Consistent for 2008 and 2009: Men and women benefit from lateral moves, although the percentages highly favor men – –Over half of all new equity partners were recent laterals – –Large majority of recent equity laterals are men (only15% are women) One tier firms are more favorable for promoting women laterals into equity partnership – –One tier: 25% of laterals are women – –Two tier 17% of laterals are women – –Mixed tier 17% of laterals are women

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. Involuntary Terminations Who is being laid off? Most firms and mostly associates Who is being laid off? Most firms and mostly associates –95% of firms had involuntary terminations since 2/08 –70% of involuntary terminations were associates, rebalancing leverage Women are being laid off about as often as men and at the junior levels Women are being laid off about as often as men and at the junior levels –Of the associates laid off, 41% were women –Losing the pipeline for promotion into more senior roles –Not clear that lateral hiring will make up the difference

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. How Are Part-Time Women Affected? Over ¾ of part-time lawyers are women Over ¾ of part-time lawyers are women –13% of females and 2% of males work part-time –Most part-timers are associates or counsels The part-time lawyers who were laid off are overwhelmingly women The part-time lawyers who were laid off are overwhelmingly women

Who Have Law Firm’s Entrusted to Manage Diversity Goals? 70% of firms employ someone with primary responsibility for diversity goals 49% of these positions are held by people with a law degree 15% of firms report that they employ multiple people (both attorneys and non-attorneys) with this role 12% of firms utilize a committee rather than a designated person Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication.

The Impact of Firm Structure on the Advancement of Women Today’s law firm structure – –One Tier 29% – –Two Tier 52% – –Mixed Tier 21% Women fare better in one tier firms than in two tier or mixed tier firms One tier Two tier Mixed tier Equity partners 18% 14% 15% New equity partners 33% 20% 18%

Copyright 2009 NAWL Foundation. All rights reserved. Not for duplication or publication. To Assist & Support the NAWL Survey Please contact Please contact –Stephanie Scharf, –Cheryl Tama Oblander, –Marianne Trost,