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Non-Equity Partnerships Are on the Rise Again
Many changes continue to occur in the traditional partner/associate structure in law firms. Permanent associates, staff or contract attorneys, temporary attorneys, of counsel (in one form or another) and non-equity partners have been added to the mix.
Until 10 years ago, only about 50 U.S. firms had a non-equity partner tier. Furthermore, as many firms dropped the category each year as adopted it, so the number remained more or less constant. Since then, however, there has been a steady increase in the number of firms creating a tier of non-equity partners. Various sources report that most of the AmLaw 200 and at least 65% of the medium-sized firms now have a two-tier structure. Even smaller firms are following the trend. There are some with as few as 20 lawyers who have created a category of non-equity partner.
Why the Increase?
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