| Curious about what happens after making partner? Dive into our in-depth report: BigLaw Partner Compensation Report: Equity vs. Non-Equity Earnings & ROI by Practice Area. |
As BigLaw continues to evolve, understanding partner compensation is more than just knowing the top-line figure. This report dives into the growing split between equity and non-equity partner pay, how practice areas and firm types affect return on investment (ROI), and what law firm economics signal for attorneys aiming for partnership.
1. The Widening Gap: Equity vs. Non-Equity Partner Pay
- In AmLaw 50 firms, equity partners can earn up to four times what non-equity partners do—for example, around $3.4M versus $810K. In boutique firms, the gap narrows to about two times, with equity partners averaging $850K versus $405K for non-equity.
- Across the industry, equity partners average close to $1.93M, while non-equity partners average about $558K—roughly a 3.5x difference.
- The rise of “salaried” or non-equity partnerships—popularized by Kirkland & Ellis—is now widespread, with nearly 90% of top firms adopting this tier.
2. Fast Facts—Partner Dynamics & ROI
- Declining equity participation: Equity partners have dropped from about 72% in 2010 to 43% in 2024 among AmLaw 100 firms—a trend that continues.
- Capital contributions are high: In big firms, equity partners often invest substantial sums—on average about $550K, which can equal nearly 30% of their first-year compensation.
- Regional and practice-area variance: Compensation varies widely. For example, private equity equity partners in New York City can earn upward of $4.2M, while other specialties and locations, though lower in pay, may offer stronger ROI when factoring in cost of living.
- Profits per equity partner (PPEP) show where the real money is concentrated. In 2024, firms like Kirkland and Wachtell each posted PPEP above $9M.
3. Practice Area & Structure—Maximizing Your ROI
- Faster routes to equity: Regulatory, compliance, tax, and IP practices often offer shorter tracks to equity (around 7–8 years), compared to litigation, which averages closer to 10 years.
- ROI over raw pay: While corporate and M&A provide high headline pay, fields like tax offer more consistent returns due to steady demand and higher equity conversion rates.
- Selecting firm size strategically: Larger firms offer prestige and higher absolute pay but require steeper buy-ins and longer timelines to equity. Smaller and boutique firms may provide quicker equity tracks and potentially better ROI for niche specialists.
4. Strategic Career Playbook
- Understand the real financial gap: Look beyond headline numbers to evaluate true ROI.
- Assess your path to equity: Choose practice areas with faster tracks if quicker financial returns matter.
- Factor in buy-in and risk: Equity requires significant investment—your ROI must account for both reward and risk.
- Choose firm type strategically: Boutique firms may provide faster equity access; large firms offer scale but slower payoff.
- Stay informed on evolving models: Many firms now adopt hybrid partnership models—equity, non-equity, and salaried—each with very different implications for pay and influence.
Conclusion
| Curious about what happens after making partner? Dive into our in-depth report: BigLaw Partner Compensation Report: Equity vs. Non-Equity Earnings & ROI by Practice Area. |
