Biglaw firms with single partnership tiers are becoming increasingly rare, and more prestigious firms are showing readiness to welcome nonequity partners into their ranks. Notably, Cravath led this shift by establishing a salaried partner tier back in November 2023. Following suit, Paul Weiss introduced a two-tier partnership plan less than a year later, and WilmerHale announced its similar move this week.
WilmerHale’s decision comes at a time when the firm’s financial metrics are thriving. Last year, the firm’s profits per equity partner exceeded $3 million, while the gross revenue stood at $1,498,257,000, securing its position at No. 31 on the most recent Am Law 100 list. With these strong financials, the firm decided that it was opportune to implement a two-tier partnership. As reported by the National Law Journal, these changes are to take effect immediately.
The firm’s managing partner, Anjan Sahni, stated that the introduction of a nonequity partnership tier would provide the firm with greater flexibility in attracting, promoting, and retaining top talent in a highly competitive market. “Creating an income tier in the partnership gives us more flexibility to attract, promote, and retain the most sought-after talent in a very competitive market. That’s a win for our clients, the firm, and our lawyers, who gain another pathway for advancement,” Sahni commented.
This trend aligns with broader industry expectations. According to the 2024 Client Advisory from Hildebrandt Consulting and Citi’s Global Wealth at Work Law Firm Group, 83% of Biglaw firms anticipate an increase in the size of their income partner roles within the next two years. As more firms move towards multi-tier partnership structures, it remains crucial to keep an eye on how these changes impact talent retention and firm dynamics.
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