Ed. note: Welcome to our daily feature, Quote of the Day.
The last decade has been so strong in terms of firm performance that the rising tide was lifting all boats, and some of those boats were rising too much. [Having a portion of compensation fixed] helps to push more money at the top to the people who are really driving the success of the firm.
— Lisa Smith, a law firm consultant at Fairfax Associates, in comments given to Bloomberg Law, concerning why some Biglaw firms have embraced nonequity partnership structures. By creating a tier for senior associates and counsel to receive partner titles without diluting equity, firms can reserve a larger share of profits for their highest-performing equity partners.
Staci Zaretsky is the managing editor of 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.