Wilmer Adds Non-Equity Partnership Tier

WilmerHale has introduced a non-equity partnership tier, aligning with a growing trend among major law firms to offer a two-tier partnership structure. The move will not impact current equity partners.

Wilmer introduces a new non-equity partnership tier, joining other firms adopting two-tier structures.
This move reflects broader trends in Big Law, where non-equity tiers are increasingly used for attracting laterals and career advancement.
Following Wilmer’s decision, there are 14 law firms with a single-tier partnership remaining in the Am Law 100.

Wilmer Cutler Pickering Hale and Dorr has introduced a non-equity partnership tier, aligning with a growing trend among major law firms to offer a two-tier partnership structure. A firm spokesperson confirmed for Law.com that the structure change will not impact current equity partners. The firm had 253 equity partners last year.

Wilmer’s managing partner Anjan Sahni described the new tier as a way to ensure more flexibility for talent. “Creating an income tier in the partnership gives us more flexibility to attract, promote, and retain the most sought-after talent in a very competitive market. That’s a win for our clients, the firm, and our lawyers, who gain another pathway for advancement,” said Sahni.

Wilmer was one of 15 law firms in the Am Law 100 operating with a single partnership tier.

Two-Tier Trends

The decision reflects a broader trend in the legal industry, where more firms are adopting non-equity partnership tiers. Cravath Swaine & Moore and Paul, Weiss, Rifkind, Wharton & Garrison made the switch in the past year and a half, years after competitors made the same maneuver.

Additionally, many Big Law firms that already have nonequity tiers are expanding them, Law.com said.

What are the benefits?

Adopting a nonequity tier has recruiting and retention advantages, but also allows firms to reach higher in scale and profit.
Many law firms have also created a nonequity tier to add laterals, as well as use as a career ladder for rising senior associates who aren’t yet ready for the equity partner ranks.

“There is a clear trend in many firms of many sizes for adding (or expanding) the non-equity tier, primarily for the financial benefits,” law firm consultant Tim Corcoran told Law.com.