Number of black partners increases by less than 1%
The percentage of black partners has increased by less than 1% since 1991 at elite law firms which pledged at the time to improve racial diversity, according to a new report released by legal analytics company Bodhala.
The report, " Dismantling the Barriers to Racial Diversity in Law Firms", released today, has revealed that US law firms failed to promote black partners despite publicly pledging to do so nearly 30 years ago by signing The New York City Bar Association’s " Statement of Diversity Principles.”
Bodhala tracked the performance of the 15 law firms which signed the statement that still exist, including Paul, Weiss, Rifkind Wharton & Garrison, Cleary, Gottlieb, Steen & Hamilton, Cahill, Gordon & Reindel, Weil, Gotshal & Manges, Sullivan & Cromwell and Willkie, Farr & Gallagher.
In 1991, out of more than 1,000 equity partners employed by firms in 1991, approximately 20 were black. The survey showed that the percentage of black partners in those firms had increased by less than 1% over the past 30 years.
The report suggests solutions for companies looking to advance black partners and other D&I goals, including the reevaluation of compensation models.
Raj Goyle, CEO and co-founder of Bodhala, said: "Companies around the world have implemented new supplier diversity programmes to promote black businesses. Why can't we do the same for law firms?”
He added that buyers have considerable leverage to make a meaningful impact on diversity at partnership level and across the ranks within the legal sector.
The report states that “origination credit tracking” is a key way corporate counsel can influence their firm's diversity. A financial incentive to lawyers who bring in new work, origination credit is determined by firm partners and, according to Bodhala, the process has “historically snubbed minorities”.
Michele Coleman Mayes, vice president, general counsel and secretary at the New York Public Library said: “To make sustainable progress on diversity, equity, and inclusion in the legal profession, it's critical to address how law firm compensation models have created systemic barriers for underrepresented lawyers.”
She added: “By making their compensation models more transparent and equitable, law firms will foster an environment in which all people of colour, women, and members of the LGBTQ+ community can thrive. It's past time for companies to use their purchasing power to bring about this much needed change.”
Earlier this month, some of the UK’s largest law firms joined recruiters by signing a charter, the Recruitment Agency Race Fairness Commitment, which has been developed by diversity recruitment specialist Rare to promote equal access to job opportunities within the legal sector.
By signing, the firms commit to upholding a range of measures. These include ensuring that: candidate pools “at least match the UK ethnic diversity and aspire to the local population if greater”, and that shortlists and speculative introductions “at least match the ethnic diversity of the relevant market”.
According to a report published by diversity recruitment company, Rare, in March 2020, “ Closing the ethnicity stay gap”, British law firms still struggle to retain ethnic minority talent.
The study showed that while 30% to 50% of British trainees in many law firms come from minority ethnic backgrounds, these recruits spend on average 20% less time in post than their white counterparts.
Meanwhile, 84% of lawyers from minority ethnic backgrounds told Rare that they had experienced “ implicit racism” at the firms they had worked at.
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