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
two-tier
partnership
announcement
in
August.
Now,
Cleary
Gottlieb
is
announcing
its
own
new
partnership
platform.
Last
year,
profits
per
equity
partner
at
Cleary
came
in
at
$4.5
million,
and
the
firm
—
which
brought
in
$1,491,568,000
gross
revenue
in
2023,
putting
it
at
No.
32
on
the
most
recent
Am
Law
100
—
decided
that
it
was
time
to
move
forward
with
a
two-tier
partnership
to
“create
more
opportunities
in
promotion
and
development,”
per
managing
partner
Michael
Gerstenzang.
According
to
the
,
the
changes
are
“effective
immediately.”
Here
are
some
additional
details:
[Gerstenzang]
said
the
nonequity
tier
will
see
its
first
candidates
when
the
firm
has
its
annual
partnership
evaluations,
which
are
currently
transpiring.
Last
year
in
late
October,
the
firm
announced
the
promotion
of
15
lawyers
to
partner.“It
is
meaningful
to
say
that
we
think
Big
Law
is
in
a
period
that
calls
for
innovation
and
adaptation,”
Gerstenzang
said
in
an
interview.
“That
is
true
across
the
board
and
has
to
extend
to
talent
development
and
management.
It’s
not
the
only
example,
but
it
is
one.”
…Overall,
he
said
Cleary
is
not
looking
for
a
certain
critical
mass
(or
percentage
of
the
partnership)
to
be
non-equity,
but
rather
allowing
those
that
go
into
that
track
to
“grow
as
professionals
in
the
non-equity
tier
and
to
have
the
opportunity
to
become
a
partner.”He
said
nonequity
partner
salaries
—
which
he
declined
to
specify
—
would
be
commensurate
with
the
market,
including
factoring
in
practice
area
and
geography.
Gerstenzang
went
on
to
say
that
the
expectations
for
nonequity
partners
at
the
firm
will
be
“very
consistent
with
how
we
think
about
junior
partners.”
He
continued,
explaining,
“Almost
no
one
is
promoted
to
partner
as
a
full-fledged
partner.
We
all
grow
into
our
positions.
That
is
true
today
and
true
under
the
new
program.”
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.
Cleary
Creates
Nonequity
Partner
Tier,
Calling
For
‘Innovation
and
Adaptation’
[American
Lawyer]
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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on
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and
Threads
or
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with
her
on
LinkedIn.