Biglaw firms with single partnership tiers are now few and far between, with more big-name firms showing that they’re ready, willing, and able to welcome nonequity partners to their ranks.
Cravath was one of the first longtime holdouts to cut bait and create a “salaried partner tier” (i.e., nonequity partners) back in November 2023. That move gave other highly ranked firms permission to tread the same path, including Paul Weiss, which announced its new two-tier partnership plan in March 2024; WilmerHale, which added a nonequity partnership tier in August 2024; and Cleary, which announced its own new partnership platform in October 2024.
Now, we’re seeing reports that Skadden, the #5 firm in the country by gross revenue, may be in the running to create its own salaried partner tier. Financial News has the scoop:
US law firm Skadden Arps Slate Meagher & Flom is mulling the introduction of a salaried tier of partners, amid fierce competition for talent among top law firms. …
Rivals have increasingly adopted the structure which gives junior lawyers the coveted partner badge earlier in their careers, but without diluting profits for equity partners.
Skadden’s partnership is expected to discuss plans to adopt salaried partners later this year, according to people familiar with the situation.
Skadden — which brought in $5,403,000 in profit per equity partner in 2023 — is reportedly considering making these changes after a series of lawyer exits to competing firms with a two-tier partnership system. As noted by Bloomberg Law, the largest law firms in America could soon have more nonequity partners than equity partners by the end of 2025.
Best of luck to the firm in its decision-making process on this important issue.
Is your firm planning to increase its nonequity partnership ranks? Please please text us (646-820-8477) or email us and let us know. Thanks.
Skadden eyes non-equity partner switch amid law firm talent battle [Financial News]
Skadden Mulls Non-Equity Tier as Partner Pay Pressure Mounts [Bloomberg Law]
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.