Another
elite
firm
has
decided
that
one
tier
of
partnership
simply
isn’t
enough
—
and
neither
is
the
pure
lockstep
salary
model.
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;
Cleary,
which
announced
its
own new
partnership
platform in
October
2024;
Skadden,
which
began
considering
a nonequity
level in
February
2025;
Schulte
Roth
&
Zabel,
which
announced
an income
partnership
tier in
March
2025
(prior
to
its merger
with
McDermott);
Debevoise,
which
created
its nonequity
partnership
track in
June
2025;
and
Sullivan
&
Cromwell,
which
rolled
out
its
nonequity
program
in
January
2026.
We’re
now
seeing
reports
that
Freshfields,
the
#13
firm
in
the
world
by
gross
revenue,
has
decided
to
create
its
own
nonequity
partner
tier,
while
at
the
same
time
“stretching”
lockstep
compensation
across
the
firm.
The American
Lawyer
has
the
scoop:
Freshfields
has
introduced
a
nonequity
partnership
tier
as
a
means
to
encourage
profitability,
following
months
of
speculation.
…In
addition
to
the
nonequity
tier,
two
sources
familiar
with
Freshfields
said
that
the
firm
is
also
stretching
its
lockstep
to
enable
higher
rewards
for
higher
earners
at
the
upper
end
of
the
pay
scale.
Introducing
a
nonequity
tier
once
felt
like
a
seismic
identity
shift
for
firms
rooted
in
tradition,
but
now
it’s
starting
to
look
almost
inevitable
—
especially
for
firms
that
want
to
compete
at
the
very
top
of
the
U.S.
market
without
letting
equity
ranks
(and
profits
per
equity
partner)
spiral.
And
while
the
nonequity
layer
may
be
new
at
Freshfields,
compensation
tinkering
is
not:
the
firm
moved
away
from
a
pure
lockstep
around
2017
amid
notable
partner
departures,
and
this
latest
change
reads
like
a
continuation
of
that
strategy:
protect
profitability
and
make
sure
the
rainmakers
feel
properly
rewarded.
For
senior
associates
dreaming
of
partnership,
the
message
across
Biglaw
is
increasingly
clear:
the
brass
ring
is
still
there,
but
there
might
be
an
extra
rung
on
the
ladder
before
you
can
grab
it..
Best
of
luck
to
Freshfields
as
it
forges
ahead
with
its
nonequity
partnership
program.
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.
Freshfields
Ushers
in
Nonequity
Partner
Tier
[American
Lawyer]
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
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