On The Merits As Non-Equity Partner Ranks Grow, Not All Lawyers Are Thrilled
Dec 5, 2024
Justin Henry, a Bloomberg Law reporter, discusses the rise of non-equity partnerships in Big Law. He explains how this new tier of partnership operates—offering prestige without ownership and lower compensation. Some lawyers embrace the title to enhance their professional standing, while others express dissatisfaction, even resorting to litigation. The conversation sheds light on the evolving landscape of law firm structures, including financial implications and the competitive dynamics at play in attracting talent.
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Rise of Non-Equity Partners
- The traditional meaning of "partner" in BigLaw has changed.
- A new class of non-equity partners is rising, lacking ownership and earning less.
Partner vs. Non-Equity Partner
- Traditional partners own shares and earn profits, similar to other businesses.
- Non-equity partners hold the title but receive a fixed salary, enabling business development.
Why Non-Equity Partnerships?
- The rise of non-equity partnerships is driven by competition, especially from firms like Kirkland & Ellis.
- Retaining and recruiting lawyers with partner titles is easier with this model.