Shearman & Sterling: The Best of Times, The Worst of Times

Shearman & Sterling made the headlines this week for advising Wells Fargo’s independent directors in the wake of its unauthorized account scandal, but the lawyers there may have been focused on something else.

With growth flat, the firm is considering de-equitizing some of its 162 equity partners and 26 fixed-share partners, according to the American Lawyer. The firm initially denied the reports that it is considering demoting partners, which would occur at the next compensation period in January, the article said.

It has since issued a statement that the firm regularly reviews “how and where we invest equity and manage headcount.”

Above the Law obtained a memo from Shearman managing ...