"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."
"As more firms rethink 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."
"Associates who once envisioned a more straightforward path to equity are now grappling with the reality of an extra rung on the ladder."
Biglaw firms are systematically restructuring partnership models by introducing nonequity partner tiers, offering partnership titles without full financial equity stakes. Starting with Cravath's November 2023 initiative, prominent firms including Paul Weiss, WilmerHale, Cleary, Skadden, Schulte Roth & Zabel, Debevoise, Arnold & Porter, Sullivan & Cromwell, and Freshfields have adopted similar structures. Sidley recently joined this trend, announcing an income partner tier to all lawyers. This widespread shift reflects changing retention strategies and compensation approaches in Biglaw. Associates face an additional career ladder rung, complicating traditional pathways to equity partnership and raising concerns about career progression expectations.
#biglaw-partnership-restructuring #nonequity-partner-tier #compensation-models #career-progression #legal-industry-trends
Read at Above the Law
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