During
a
time
when
Biglaw
firms
are
shying
away
from
all-equity
partnerships
and
creating
non-equity
partnership
tiers,
a
brand
new
megafirm
is
taking
a
stand
and
adopting
an
all-equity
partnership
model.
A&O
Shearman
—
formed
from
the
union
of
Allen
&
Overy
and
Shearman
&
Sterling,
with
nearly
4,000
lawyers,
including
800
partners
—
recently
announced
that
it
will
operate
under
an
all-equity
partnership
structure.
Both
legacy
firms
had
a
mixture
of
equity-
and
non-equity
partnerships,
so
this
new
framework
is
markedly
different
for
attorneys
at
the
firm.
In
addition
to
the
new
partnership
configuration,
the
firm
announced
a
new
pay
plan
for
partners.
The
American
Lawyer
has
additional
information:
Under
the
new
system,
the
firm’s
800
or
so
partners
will
be
assigned
to
one
of
three
rungs
on
a
modified
lockstep,
called
‘entry’,
‘core’
and
‘super’,
the
latter
of
which
is
reserved
for
the
firm’s
best
performers,
or
“highflyers”,
as
one
of
the
sources
put
it.
…Commenting
on
the
changes,
an
A&O
Shearman
spokesperson
said:
“Our
approach
to
partner
remuneration
for
A&O
Shearman
is
designed
to
allow
the
firm
the
flexibility
to
compete
for
and
retain
the
very
top
talent
while
encouraging
and
rewarding
the
maxmium
level
of
collaboration
and
teamwork,
which
bests
serves
our
clients
and
partnership
culture.”
The
news
of
A&O
Shearman’s
new
partnership
layout
comes
hot
on
the
heels
of
the
firm
announcing
that
it
would
cut
10%
of
its
equity
partnership
by
April
2025.
Those
affected
by
the
decision
have
already
been
notified.
Best
of
luck
to
the
firm
as
it
embarks
upon
a
new
—
and
hopefully
prosperous
—
partnership
plan.
A&O
Shearman
Adopts
3-Level
Lockstep
Pay
Model
Amid
Shift
to
All-Equity
Partnership
[American
Lawyer]
Staci
Zaretsky is
a
senior
editor
at
Above
the
Law,
where
she’s
worked
since
2011.
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