In a move to increase flexibility for partnership pay, Cravath, Swaine & Moore has established a non-equity partnership tier. This decision comes after other law firms implemented similar changes years prior. Cravath’s move is expected to inspire other firms to modify their partnership structures and compensation systems with the aim of recruiting and maintaining top-tier legal talent. Read more.
This new level will offer a salary-based tier for certain lawyers carrying partner titles, yet another tier remains reserved for equity ownership within the firm.
Insights indicate that Cravath has been discussing the possibility of joining its non-equity tier with counsel-level attorneys since the previous summer, according to a leader of an Am Law 50 firm.