BigLaw Equity Partnerships Shrink as Multi-Tier Models Take Hold
Only 27 Am Law 200 firms now use a single-tier equity partnership model—down as non-equity tiers rise.
Why it matters: BigLaw partners and firm leaders need to understand evolving partnership structures for career and governance planning. Multi-tier models impact compensation, firm culture, and long-term profitability in an increasingly competitive market.
- As of 2025, just 27 Am Law 200 firms retain a single-tier partnership.
- 46% of partners in the Am Law 200 are non-equity partners.
- Cravath, Paul Weiss, WilmerHale, Cleary Gottlieb, and Debevoise & Plimpton adopted non-equity tiers in 2024.
- Equity partners in the Am Law 50 can earn an average of $3.4 million, compared to $810,000 for non-equity partners.
Traditional equity-only partnerships in BigLaw are rapidly declining, with most major firms now favoring multi-tier models that include non-equity partners. As of 2025, only 27 firms in the Am Law 200 operate with a true single-tier structure, while nearly half (46%) of their partners hold non-equity positions.
This shift accelerated in 2024, when high-profile firms such as Cravath, Paul Weiss, WilmerHale, Cleary Gottlieb, and Debevoise & Plimpton debuted new non-equity partnership tiers. These changes are designed to retain talent, manage compensation costs, and align with broader industry trends.
- Compensation gaps are significant. In the Am Law 50, equity partners earn an average of $3.4 million, while non-equity counterparts earn about $810,000. (LawCrossing analysis)
- According to Richard Daneker, Chair of Arnold & Porter: “The vast majority of Am Law 100 firms have both income and equity partner positions, and so it aligns us with the market.”
- Despite the trend, some leaders urge careful consideration. Ropes & Gray Chair Julie Jones noted, "We believe in making decisions that involve sufficient analysis. We did not see that a multi-tier partnership was causative to performance."
Law firm leaders face strategic choices about partnership structures that affect career paths, firm governance, and compensation alignment with market realities. As the equity-only model fades, understanding these changes is essential for both aspiring and current partners.
By the numbers:
- 27 — Am Law 200 firms with a single-tier equity partnership (2025)
- 46% — Am Law 200 partners now non-equity
- $3.4M vs. $810,000 — Average Am Law 50 equity partner pay vs. non-equity partner pay
Yes, but: Data on non-equity partner satisfaction and long-term career outcomes remains limited.