Skadden Mulls Non-Equity Tier as Partner Pay Pressure Mounts

Skadden is considering adding a tier of salaried “partners” at the Wall Street law firm, following similar moves by several of its rivals.

The firm’s partners are discussing adding a non-equity level, according to two sources familiar with the talks. Those lawyers would largely be paid by salary, rather than getting a cut of the firm’s profits.

Firms are using non-equity partner roles to keep talent and free up profits for rainmakers as the price tag on top lawyers soars. Skadden, Arps, Slate, Meagher & Flom is among few remaining holdouts after prominent firms like Paul Weiss ...