Why Do Law Firm Partners Move Firms?

Law firm partners represent the highest talent of legal expertise and leadership within a firm, making their movement between firms relatively rare and highly strategic. In Spain, where legal partners are well-remunerated, the reasons behind their mobility extend far beyond salary considerations. Instead, moves are often driven by alignment with strategic objectives, firm culture, or dissatisfaction with the current trajectory of their practice.

Mobility Trends in Spain

Partner mobility in Spain remains relatively low compared to other jurisdictions like the UK or the US. A 2023 report by Iberian Lawyer found that only 6–8% of partners in firms in Spain move annually, reflecting the high stakes and risks associated with such transitions. The majority of these moves occur in Madrid and Barcelona, driven by intense competition among international firms and Spanish firms.

Key Motivators for Partner Mobility

  1. Strategic Realignment of Practice Areas

One of the most relevant reasons for a partner to move is the desire to align their practice with a firm that better supports their client base or industry focus. For instance, a partner specializing in emerging areas like renewable energy, fintech, or data protection may seek a firm with a stronger market presence or resources in those sectors.

  • Example: A Madrid-based partner in a mid-sized firm might move to an international firm with a global client base, enabling them to expand their practice beyond Spain.
  1. Client Conflicts and Restrictions

Client conflicts can become a critical issue, particularly in highly specialized firms. A partner may feel restricted in taking on new clients due to conflicts of interest within their current firm. Moving to a new firm can provide the freedom to grow their client roster without such limitations.

  1. Cultural or Leadership Misalignment

Firm culture plays a significant role in partner satisfaction. Partners may leave firms where the leadership style, decision-making process, or internal politics clash with their values or working style. In Spain, where firm culture can vary significantly between traditional domestic firms and international players, such misalignments can be a tipping point.

  1. Lack of Influence or Decision-Making Power

Partners are often attracted to roles where they can have a more significant say in the direction of the firm. In larger firms, some partners may feel overshadowed or unable to influence critical decisions.

  1. Firm Instability or Merger Activity

Market consolidation and mergers have been reshaping the legal landscape in Spain. Partners in firms undergoing financial instability or a merger might proactively seek new opportunities to protect their practice and clients from disruption.

The Role of Financial Incentives

While partners in Spain are generally well-compensated, financial incentives still play a role—though often as part of a broader package rather than a standalone motivator. For example:

  • Profitability Models: Partners may be drawn to firms with more lucrative profit-sharing models.
  • Equity vs. Non-Equity Positions: A move from a non-equity to an equity partnership often comes with greater financial rewards and influence.
  • Pension or Exit Strategy: Firms offering better long-term financial security, such as retirement plans or client transition support, can appeal to senior partners.

Conclusion:

While partner mobility in Spain is not frequent, it is a highly strategic process driven by alignment issues, client needs, and firm stability. Firms that understand these factors and invest in seamless onboarding processes can position themselves as attractive destinations for top-tier legal talent. In the increasingly competitive Spanish legal market, getting this right is not just important—it’s essential.

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