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
2024;
WilmerHale,
which
added
a
nonequity
partnership
tier
in
August
2024;
and
Cleary,
which
announced
its
own
new
partnership
platform
in
October
2024.
Now,
we’re
seeing
reports
that
Skadden,
the
#5
firm
in
the
country
by
gross
revenue,
may
be
in
the
running
to
create
its
own
salaried
partner
tier.
Financial
News
has
the
scoop:
US
law
firm
Skadden
Arps
Slate
Meagher
&
Flom
is
mulling
the
introduction
of
a
salaried
tier
of
partners,
amid
fierce
competition
for
talent
among
top
law
firms.
…Rivals
have
increasingly
adopted
the
structure
which
gives
junior
lawyers
the
coveted
partner
badge
earlier
in
their
careers,
but
without
diluting
profits
for
equity
partners.Skadden’s
partnership
is
expected
to
discuss
plans
to
adopt
salaried
partners
later
this
year,
according
to
people
familiar
with
the
situation.
Skadden
—
which
brought
in
$5,403,000
in
profit
per
equity
partner
in
2023
—
is
reportedly
considering
making
these
changes
after
a
series
of
lawyer
exits
to
competing
firms
with
a
two-tier
partnership
system.
As
noted
by
Bloomberg
Law,
the
largest
law
firms
in
America
could
soon
have
more
nonequity
partners
than
equity
partners
by
the
end
of
2025.
Best
of
luck
to
the
firm
in
its
decision-making
process
on
this
important
issue.
Is
your
firm
planning
to
increase
its
nonequity
partnership
ranks?
Please
please
text
us
(646-820-8477)
or email
us and
let
us
know.
Thanks.
Skadden
eyes
non-equity
partner
switch
amid
law
firm
talent
battle [Financial
News]
Skadden
Mulls
Non-Equity
Tier
as
Partner
Pay
Pressure
Mounts
[Bloomberg
Law]
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
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and Threads, or
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with
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on LinkedIn.