"Cravath was one of the first longtime holdouts to cut bait and create a "salaried partner tier" (i.e., nonequity partners) back in November 2023. That move gave other highly ranked firms permission to tread the same path, including Paul Weiss, which announced its new two-tier partnership plan in March 2024; WilmerHale, which added a nonequity partnership tier in August 2024; Cleary, which announced its own new partnership platform in October 2024; Skadden, which began considering a nonequity level in February 2025; Schulte Roth & Zabel, which announced an income partnership tier in March 2025 (prior to its merger with McDermott); Debevoise, which created its nonequity partnership track in June 2025; Arnold & Porter, which quietly announced its income partner role in December 2025; Sullivan & Cromwell, which rolled out its nonequity program in January 2026; Freshfields, which introduced its nonequity tier in February 2026; and Sidley, which announced its income partnership program in March."
"Yet another firm may be thinking about joining the growing ranks of those experimenting with a nonequity partner tier, offering lawyers the prestige of a partnership title without the full financial buy-in (or payoff) that traditionally comes with it. As more firms reconsider compensation structures, retention strategies, and the path to equity, the expansion of nonequity partnership continues to signal a broader shift in how Biglaw defines partnership in the first place."
"Now, we're seeing reports that A&O Shearman, one of the most profitable firms in the world by gross revenue, may be in the running to create its own nonequity partner tier. Law.com International has the scoop: [F]our senior people with knowledge of the matter said the subject of a nonequity tier had been raised multiple times in leadership discussions, putting the firm on"
Biglaw firms are increasingly reconsidering partnership structures by adding nonequity partner tiers. These tiers provide lawyers partnership titles and prestige without the traditional financial buy-in or payoff tied to equity partnership. Cravath created a salaried partner tier in November 2023, and other major firms followed with two-tier or income partnership models between 2024 and 2026. Reported examples include Paul Weiss, WilmerHale, Cleary, Skadden, Schulte Roth & Zabel, Debevoise, Arnold & Porter, Sullivan & Cromwell, Freshfields, and Sidley. A&O Shearman is reported to be considering a similar nonequity tier, with leadership discussions raising the idea multiple times.
Read at Above the Law
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