In an era where dual-tier partnerships have become the norm among most Am Law 100 firms, several firms within the Second Hundred are maintaining a single-tier partnership model. This approach is exemplified by entities such as FisherBroyles, Cleveland-based Tucker Ellis, New Orleans-based Phelps Dunbar, and Los Angeles-based Irell & Manella, all of which adhere to a unified partnership structure.
This adaptation is particularly notable given that many regional and smaller firms have adopted a dual-tier system to attract and retain top talent from larger firms. The creation of a nonequity partnership tier has been a strategic move to support recruiting efforts, especially to entice partners with lucrative books of business. As one leader of an Am Law 200 firm remarked, the existence of nonequity partnerships often leads some partners to feel like “lesser-class citizens” compared to their equity counterparts.
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