Credit: Who is Danny/Shutterstock'This Trend Isn't Over': Law Firm Partner De-Equitizations Expected to Continue
Multiple Am Law 100 firms, as well as midsize and regional law firms, have de-equitized partners in recent months. More are likely to follow suit.
December 04, 2024 at 11:00 AM
4 minute read
What You Need to Know
- Multiple Am Law 100 firms, as well as midsize and regional law firms, have de-equitized partners in recent months.
- One source said de-equitization is, 'in most cases, is simply sound financial management of the firm.'
- Industry sources predict more firms will follow suit, and that more firms are likely to adopt a two-tier model.
Law firms are becoming increasingly comfortable de-equitizing partners, especially those who aren’t contributing to the bottom line, legal industry consultants and recruiters say, and it's a trend likely to continue into the next year.
Multiple Am Law 100 firms, as well as midsize and regional law firms, have de-equitized partners in recent months, several sources told Law.com. While law firms may be having a strong year in profits and demand, some have been shrinking their equity tiers through de-equitizations, retirements and control over partner promotions.
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