While many Am Law 200 firms are maintaining a tight grip on the brass ring of equity partnership, they’re also adding or extending nonequity tiers. Among a sample of 19 firms that have reported 2024 financials so far, nine had nonequity growth that was at least double the amount of equity growth; 14 in total had more growth in the nonequity than the equity tier.
Overall, about half of partners in Big Law now are classified as income or nonequity partners, with the tier expected to surpass the ranks of equity partners very soon, if it hasn’t already. And more single-tier firms may be launching a nonequity tier.