Non-equity partners now account for more than half of all partners across the Am Law 100. UK firms are also adding salaried and non-equity tiers to their partnership structures. Yet the title has no standard definition and can describe very different levels of responsibility, influence and career opportunity.
At one firm, a non-equity partner may lead client relationships, manage a team and be considered for equity within two years. At another, the position may be close to that of a senior associate or counsel, with higher pay but little additional authority. Candidates therefore need to look beyond the title and understand how the role works within the firm.
Why firms use non-equity partnership
The structure allows firms to promote and retain senior lawyers without adding them to the profit-sharing partnership. It gives firms more control over the size of the equity while recognising lawyers who lead matters, manage clients and contribute to the development of the practice.
For lateral hires, non-equity partnership can provide time to establish a practice within a new firm. A lawyer may need to transfer clients, build relationships with other partners and prove there is enough demand to support their practice before joining the equity. Some firms use the tier as a formal step towards equity, while others treat it as a permanent career level. Candidates should understand which model applies before accepting an offer.
Understanding the responsibilities
A candidate should establish what authority comes with the role and how it differs from their current position. This includes whether they will control matters and client relationships, have the freedom to build a team and take part in decisions about the direction of the practice.
They should also understand how the firm handles business development and client origination. If the responsibilities are similar to those of a senior associate or counsel, the role should offer something else, such as higher compensation, access to larger clients, support to build a practice or a defined equity process.
Assessing the route into equity
Candidates who want equity should ask how progression has worked for other lawyers at the firm. The number of non-equity partners who have entered the equity, how long it took and what they were expected to achieve will provide more useful information than a general statement that promotion is possible.
The firm should also explain who makes the decision, how often the candidate’s progress will be reviewed and what financial or client targets will apply. No firm can guarantee a future promotion, but it should be able to describe the criteria and show that other lawyers have progressed through the same route.
Comparing compensation
Non-equity partner packages vary between firms. Some offer a fixed salary and discretionary bonus, while others link compensation to billable hours, collections, client origination or management responsibilities. Candidates need to understand how the bonus is calculated, how credit is shared and whether their earnings can grow as their practice develops.
This needs closer consideration when an equity partner is looking at a non-equity offer. The comparison should include current drawings, benefits, capital arrangements and future earning potential. A move out of equity may still make financial sense if the new firm provides better clients, stronger teams and more room to develop the practice.
Examining the support available
A partner’s performance depends partly on the support available after they join. Candidates should establish whether they will have access to associates, help with pitches and introductions to the firm’s clients. They should also understand whether conflicts could prevent existing clients or matters from moving.
Support from other partners is just as important. A new hire may struggle if colleagues are unwilling to share relationships, make introductions or involve them in relevant work. These points should be discussed during the recruitment process so that both sides agree on what the partner is expected to bring and what the firm will provide.
Get in touch
To discuss your next career move or find out more about non-equity partner opportunities, get in touch at info@wearebuchanan.com