It is no secret that the partners at the white-shoe law firms Debevoise & Plimpton and Cravath, Swaine & Moore make a decent living. The financial disclosure form of Mary Jo White, who was nominated by President Obama to be the next chairwoman of the Securities and Exchange Commission, reveals just how decent.
Ms. White and her husband, John, a Cravath partner, have amassed wealth of between $16 million and $47 million, according to the filing. Ms. White runs the white-collar criminal defense practice at Debevoise & Plimpton; Mr. White is a partner at Cravath, Swaine & Moore.
As part of her isclosures, Ms. White also explained how she would deal with potential conflicts of interest. In a surprise move, she disclosed that her husband would relinquish his partnership at Cravath, converting his interest in the firm from an equity to non-equity status.
While many large corporate law firms have non-equity partners, meaning they hold the title “partner†but have no ownership stake, Cravath’s 87 partners all have equity in the firm. As a non-equity partner, Mr. White will receive a fixed salary and an annual performance bonus, according to the letter.
Ms. White also said that, for the time she serves as chairwoman, Mr. White will not communicate with the S.E.C. on behalf of Cravath or any client in connection with a representation. Such a restriction is not immaterial for Cravath, as Mr. White has deep connections to the commission, having served as the director of the commission’s corporation finance unit from 2006 to 2008.
The form has a number of other disclosures.! Mr. White also has investments in a three hedge funds, including a vehicle managed by Och-Ziff, a large publicly traded investment firm started by a former Goldman Sachs partner. He will initiate the process of divesting his interest in all three of the funds upon her confirmation.
As for Ms. White, Debevoise paid her more than $2.4 million last year. And the disclosure also highlights Debevoise’s lucrative retirement plan. Ms. White said that she plans to retire from the Debevoise partnership upon her confirmation, and the filing said that she will receive a monthly lifetime retirement payment of $42,500, amounting to $510,000 annually.
However, instead of making a monthly retirement payment for the next four years while she runs the S.E.C., Debevoise will make a lump-sum payment within 60 days of her appointment, the disclosure said.
The wide range of the Whites’ net worth is a function of the disclosure form, which requires only placing investments within a range of numbers. For instance, Mr. White’s capital account at Cravath is valued at more than $1 million, but it is surely worth well in excess of that.
