There
are
lots
of
flaws
with
Biglaw,
but,
one
of
the
virtues
is
the
transparency
on
compensation.
When
it
comes
to
the
associate
ranks,
the
majority
of
top
firms
have
a
very
clear
salary
and
bonus
schedule
and,
for
the
most
part,
firms
are
up
front
about
the
conditions
needed
to
take
home
the
cash
on
the
grid.
But
all
that
changes
when
you
make
partner.
Obviously,
the
ranks
of
equity
partnership
are
paid
with
often
byzantine
formulas
that
are
queued
off
of
profits.
But
what
about
the
growing
nonequity
partner
ranks?
Figuring
out
compensation
for
those
more
than
an
associate,
not
yet
an
equity
partner
is
a
lot
more
opaque.
According
to
reporting
by
Law.com,
nonequity
partners
are
averaging
less
than
$350,000
in
base
compensation
and
$106,000
in
bonuses.
According
to
a
recent
ALM
flash
survey
of
Am
Law
200
firms
and
midsize
firms,
nonequity
partners
averaged
about
$345,679
per
year,
with
an
average
annual
bonus
of
a
little
more
than
$106,000.The
survey,
which
took
in
responses
from
286
lawyers
total
and
about
56
nonequity
partners
specifically,
also
pegged
the
median
salary
for
the
non-equity
tier
right
at
$300,000,
and
the
bonus
at
$50,000.
The
respondents
in
both
groups
ranged
from
the
smallest
firms
(1-99
lawyers)
to
the
largest
(1,500+)
scale.
Yeah…
compare
that
to
senior
associate
compensation
at
top
firms
(which,
admittedly,
not
all
of
the
ALM
respondents
work
at).
Associates
can
take
home
$435,000
in
salary,
with
a
$115,000
bonus.
Even
at
the
biggest
of
Biglaw
firms
(more
than
600
attorneys),
the
average
nonequity
payday
isn’t
much
more
than
senior
associates.
Now
it’s
clear
why
there’s
“friction”
between
these
classes
of
attorneys.
As
Blane
Prescott,
managing
shareholder
at
MesaFive,
noted,
“It
definitely
produces
some
friction.
Especially
among
middle
market
firms
who
are
getting
pulled
up
into
the
ranks
of
those
firms
paying
set
class
bonuses
and
special
bonuses.
Many
of
these
firms
are
now
saying
that
they
can
no
longer
guarantee
that
[nonequity
partners]
will
earn
more
than
associates.”
Walking
the
compensation
line
between
senior
associates
and
nonequity
partners
is
also
a
challenge
at
top
Biglaw
firms.
With
a
number
of
firms
adding
nonequity
partners
to
their
ranks,
keeping
everyone
paid
and
happy
is
an
art.
“I
think
it
is
getting
more
complicated
because
you
also
have
a
different
class
of
firm
now
wrestling
with,
‘How
do
we
compensate
our
nonequity
partners?’
that
never
had
to
think
about
it
before,”
said
Jeff
Lowe,
senior
managing
partner
and
market
president
for
Washington,
D.C.
at
consulting
firm
CenterPeak.
“You’ve
seen
over
the
last
five
years,
in
particular
formerly
single-tier
firms
moving
to
a
two-tier
system,
so
they
have
to
continue
to
find
that
line
to
keep
the
partners
happy.
But
they
went
to
two
tiers
specifically
to
divert
more
compensation
to
the
equity
partners.
So,
it
can
be
very
tricky.”
Not
every
firm
balances
this
issues
in
the
same
way.
Betty
Temple,
chair
emeritus
at
Womble
Bond
Dickinson,
told
Law.com
nonequity
partner
compensation
is
“bespoke,”
and
a
nonequity
partners
can
make
“generally,
significantly
more
than
associates,
and
sometimes,
as
much
or
more
than
equity
partners.”
But
Dan
Binstock,
a
recruiter
for
Garrison,
noted
that
is
far
from
the
case
at
every
big
firm.
“There
can
often
be
a
big
gap,
a
sizable
gap
between
the
highest-paid
nonequity
partners
and
the
lowest-paid
equity
partners,”
Binstock
said.
“And
that
can
provide
a
lot
of
extra
profit
for
a
firm,
where
partners
are
reaching
for
the
brass
ring
of
equity
because
they
will
get
a
seven-figure
jump,
and
they’re
willing
to
tolerate
multiple
years
at
a
lower
level
in
order
to
have
a
seat
at
that
table.”
So
a
word
of
caution
for
those
getting
a
“promotion”
to
nonequity
partner
—
the
compensation
may
not
be
the
brass
ring
you
assume
it
is.
Kathryn
Rubino
is
a
Senior
Editor
at
Above
the
Law,
host
of
The
Jabot
podcast,
and
co-host
of
Thinking
Like
A
Lawyer.
AtL
tipsters
are
the
best,
so
please
connect
with
her.
Feel
free
to
email
her
with
any
tips,
questions,
or
comments
and
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on
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@Kathryn1 or
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@[email protected].