In today’s competitive lateral market, as rainmaking partners constantly field offers from higher-paying firms, bonuses structured as forgivable loans have become an important tool for partner retention at some firms.
As part of its merger with Allen & Overy, Shearman & Sterling employed forgivable loans to incentivize partners in core areas at the firm to stay in place, according to people familiar with the firm. A representative for Shearman declined to comment for this story.
