Davis Polk’s Pay Move Signals Virus Can’t Stop Big Law Arms Race

Wall Street firm Davis Polk & Wardwell’s departure from a seniority-based partner pay system signals that even during the pandemic, the market for lateral hiring is still very much alive in Big Law, especially for the players at the top.

Competitive Advantage: By abandoning strict lockstep, Davis Polk now has more flexibility to go after star partners at rival firms by offering them big money. With recent successes, particularly in capital markets, the well-respected firm will likely be a tempting landing spot.

Armed and Dangerous: “Another nation has joined the nuclear weapons club,” said Bruce MacEwen, a consultant to ...