For the first time in more than a decade, Greenberg Traurig has issued a capital call to raise $24 million from its equity shareholders. The 1,700-lawyer firm said it took the action as a safeguard against “uncertainty” in the U.S. and international markets, and that it is not facing any immediate cash needs.
The capital call, which was announced last month during a telephonic partner meeting, requires equity shareholders to contribute 1 percent to 5 percent of their salaries, according to a Greenberg lawyer who asked not to be identified. The contributions will be based on salary levels, with lesser-paid shareholders paying 1 percent and the highest-paid principal shareholders paying 5 percent. Dividing the number of equity partners by the capital call works out to an average payment of $76,923. The average profit per partner was $1.42 million last year, up 7 percent from the year before. The capital call would likely wipe out most of that increase.
