The Problem with Origination Credit—and How In-House Clients Can Address it

The gender gap in the legal industry is easy to recognize, thanks to Burford’s 2020 Equity Project study. But recognizing the problem is only half the battle. Origination credit continues to be a sticking point—as women consistently receive less than their fair share. This fuels a cycle of inequity that can reverberate through a law firm and beyond.

Burford Capital reveals its 2020 Equity Project study surveyed General Counsel and senior in-house lawyers. Of the respondent pool, a staggering 52% had no idea how origination credit was awarded at the firms they utilized. Why does that matter? Because money flows in via those GCs, which gives them considerable power to influence the firms they hire.

The problem began when male lawyers inherited clients from their predecessors. Senior male partners mentor male lawyers more often than female lawyers. This leads to female lawyers receiving lower-then-average compensation almost 80% of the time. And 67% of senior female lawyers state that they’ve experienced gender bias that has impacted their business development.

The simple act of asking about origination credit can bring needed attention to the issue. More than 150 GCs wrote to their law firms in January of 2019, demanding that they close the gender gap. These included Microsoft and Coca-Cola, among other heavy hitters. That’s a positive step forward—but the progress must be more widespread in order to inspire lasting change.

It’s been speculated that more GCs don’t ask about the gender gap or origination credit simply because it doesn’t occur to them. It’s also likely that many law firms don’t share what they consider insider information. If this issue is to be adequately addressed, habitual changes must be implemented.