Biglaw firms with single partnership tiers are now few and far between, with more big-name firms showing that they’re ready, willing, and able to welcome nonequity partners to their ranks.
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, and WilmerHale, which made its announcement earlier this week.
Last year, profits per equity partner at WilmerHale passed $3 million, climbing by 10%, and the firm — which brought in $1,498,257,000 gross revenue in 2023, putting it at No. 31 on the most recent Am Law 100 — decided that with all of this cash freely flowing, now is the time to move forward with a two-tier partnership. According to the National Law Journal, the changes will take effect immediately. Here are some additional details:
Wilmer managing partner Anjan Sahni said in a statement that by creating a nonequity partnership tier, it will give the firm “more flexibility” for talent.
“Creating an income tier in the partnership gives us more flexibility to attract, promote, and retain the most sought-after talent in a very competitive market. That’s a win for our clients, the firm, and our lawyers, who gain another pathway for advancement,” Sahni said.
Biglaw firms are making major moves on partnership and compensation in order to recruit and retain rainmakers and to calm dissension within their ranks — and we can expect more firms to follow the leader in the years to come. According to the 2024 Client Advisory from Hildebrandt Consulting and Citi’s Global Wealth at Work Law Firm Group, 83% of Biglaw firms expect to increase the size of their income partner roles in the next two years.
Is your firm planning to move to a black-box compensation system for partners or increase its nonequity partnership ranks? Please please text us (646-820-8477) or email us and let us know. Thanks.
Wilmer Adds Nonequity Partnership Tier, Becoming Latest to Move to 2 Tiers [National Law Journal]
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on X/Twitter and Threads or connect with her on LinkedIn.
#Top #Biglaw #Firm #Creates #Nonequity #Partnership #Tier #Attract #Promote #Retain #Talent
