The path to equity partnership at Am Law 200 legal firms seems to be narrowing. Unlike the late 20th century when a significantly larger proportion of lawyers at these big law firms rose to that coveted status, it appears the trend has, quite drastically, taken a turn in the opposite direction. Above The Law reports a noticeable reduction in the ranks of equity partners in recent times.
As of 2022, the number of lawyers at Am Law 200 firms who hold equity partnership titles remains undisclosed. However, it would be worth considering that back in 1999, 32 percent of BigLaw attorneys were equity partners. This impressive percentage from over two decades ago starkly contrasts with the current situation. The significant shift from then to now prompts a series of questions. Quite specifically, what has driven the decline in this percentage and how might this downward trend affect the future of larger law firms?
The present state of equity partnership in legal firms isn’t just a deviation from the past, but potentially a route to a different future. Some in the industry might consider these firms less appealing employment options compared to other firms that provide a more attainable path to equity partnership. Moving ahead, it would be interesting to see how these influential firms strategize to mediate this change, if they consider it a concern in the first place. While we wait with anticipation, one thing is clear – the landscape of legal equity partnership has undeniably transformed since the close of the 20th century.