The Power Five: The Making of Newsworthy Deal Teams

Abstract

The number of law firm partners who identify as women has more than doubled since 1993. Will these gender parity advances regress as employers curb diversity efforts? To answer that question, we look at the organizational dynamics that affect women’s opportunities and outcomes through the lens of newsworthy deal teams. These teams, averaging five lawyers, are at the power center of law firms. Our analysis of over 10,000 deals and more than 50,000 attorneys for the period 2013-2023 reveal evidence that women’s gains may be sustainable without continued DEI interventions. While women are less likely to be at the top of a team and more likely to be on smaller transactions and cases, they are slowly advancing up the team ladder and gaining power. Over the past decade, the representation of women on leadership teams has grown 50%. Women are taking more seats at the deal table, increasing from one out of five spots to nearly one out of three. Women have not yet achieved parity in law firms but are on a positive trajectory in contrast to the early evidence for attorneys who are racial and ethnic minorities. Making the team—the “power five”—reveals existing power structures while also suggesting future authority and control.

Keywords: law firms, gender gap, discrimination, mergers and acquisitions, capital markets

JEL Classification: J15, J16