The nonequity partner tier has been a part of Big Law for nearly half a century. However, the size and prominence on the nonequity tier has grown substantially, and in recent years has become the norm, not the exception.
Nonequity partners are senior attorneys, but unlike equity partners, have minimal or, even more likely, no ownership stake in their law firm. Eighty-seven of the 100 largest law firms by gross revenue have nonequity tiers, and 70 of those have increased in size since 2021, according to data from The American Lawyer. With the current trajectory, there will soon be more nonequity partners than equity partners among the top grossing law firms, and that divide will only continue to widen.
In this video, we explain the nonequity partner tier, how it differs from traditional equity partners, how and why the role was created, and how the nonequity partner became the norm in law firms over just a few decades. Finally, we’ll look at the pros and cons of having a non-equity tier for both the firm and the lawyer.
Video features:
- Justin Henry, Business of Law Reporter, Bloomberg Law
- Bruce MacEwan, Adam Smith, Esq.
(Corrects video to show Williams & Connolly does not have nonequity partners, and Davis Wright Tremaine does).
To contact the producer on this story:
To contact the executive producer responsible for this story:
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.