With strong performances throughout the Am Law 200, partner pay evolved and surged into a different stratosphere last year. But in 2025, systems set up to reward high performers may not be as bountiful if the economy takes a hit, and firms that came into this year expecting to go gangbusters may reduce draws and distributions for some partners, law firm consultants said.
Performance management discussions will likely focus more on adjusting comp downward, shifting roles or counseling lawyers out of the firm, they said. And while a number of firms continue to expand bonus pools, analysts say, the mix of practitioners they reward could look different, as high-end products liability, class action and labor and employment demand accelerate.