Credit: blvdone/Adobe Stock Ballooning Nonequity Tiers Will Require Law Firms to Manage Ranks Closely
"Given the equity partner promotion ratios, [firms] could be looking at a long-term problem," said law firm consultant Brad Hildebrandt.
April 01, 2024 at 05:00 AM
6 minute read
What You Need to Know
- Firm leaders have to articulate expectations for nonequity partners, or else risk having the message and the strategy get muddied.
- The 'partner' title isn't just about internal credibility, it provides a boost for lawyers trying to generate business and bring in clients, even if they're technically a non-share partner.
- 'At some time, there's going to be a balloon of individuals, theoretically, ready for equity partner,' noted one firm consultant.
More large law firms are growing a nonequity partner tier to create leverage and improve recruiting and retention. But there are risks from a bloated nonequity tier, observers say, while law firms need to be careful with how they communicate with partners in the nonequity ranks.
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