Securities Docket - Ask a Recruiter: When Is the “Right” Time to Make a Lateral Move?

Weekly Career and Market Insight from Rachel Nonaka, Managing Partner at Transatlantic Legal Recruiting Firm Macrae in Washington, D.C.

As a former SEC attorney, I have a special place in my heart for government folks and have focused on this audience in my first few columns. However, just 14% of the partners hired by Am Law 100 firms last year came from government – and that was in D.C.! So, if you’re reading this at your law firm desk (or are still able to enjoy a work-from-home day and the joy of sweatpants), this post is for you. 

Lawyers make lateral moves for two main reasons and you won’t be surprised to hear that they both center on compensation. #1: There’s a hot market for their expertise. When this is the case, a move often results in a significant one-time bump in comp and/or a title change. This is true at all levels, from associate to rainmaking senior partner. #2: A move could bolster their long-term profitability. If your firm isn’t maximizing your opportunities to serve clients, for instance, a move could result in easier and more successful business generation. Other common challenges attorneys look to improve upon include client conflicts, rate pressure and lack of investment in the practice. 

Are law firms seeking to add laterals with securities expertise in 2024? You bet. As I mentioned in a previous column geared toward those of you in government, based on recent talks my colleagues and I have had with law firms and Macrae’s market research, the most in-demand expertise includes general securities enforcement; asset management with a particular focus on the private fund adviser rules; FCPA; cyber and crypto; and corporate disclosure counsel. While I work primarily with partners and tend to focus my columns accordingly, this applies to a large extent across the board. For instance, there is significant market demand for senior associates with SEC enforcement experience. 

I'll close with a question potential candidates tend to ask me right out of the gate: “Do I need to have a portable book of business?” If you're a partner, you can assume you’ll need to bring some amount of portable business. The rare exceptions include when the firm has a succession issue or needs regulatory support for a different practice. On the counsel and associate levels, most firms do not require portables. (If you’d like to get some feedback on your specific situation, please let me know.) 

Send your questions for this column (burning or not!) to Rachel.Nonaka@macrae.com. No names or other identifying information will appear in the column. If you’d like to have a confidential discussion about your career trajectory and current market opportunities, please share your contact details here. (And, if you came across this column and don’t currently subscribe to the Securities Docket Newsletter, you can sign up here.)