The shift to a multi-tiered partnership structure is becoming increasingly common among leading U.S. law firms
Wilmer Cutler Pickering Hale and Dorr (WilmerHale) has joined the growing list of major U.S. law firms adopting a non-equity partnership tier, marking a significant shift from the traditional partnership model where all partners share ownership. The newly introduced tier will apply to new hires, leaving the firm’s 253 existing equity partners unaffected.
WilmerHale managing partner Anjan Sahni described the addition as a strategic move to enhance the firm's appeal to top legal talent by offering "another pathway for advancement." Sahni emphasized that the change would provide greater flexibility in attracting and retaining lawyers while benefiting both clients and the firm. The shift to a multi-tiered partnership structure is becoming increasingly common among leading U.S. law firms. According to a 2023 report by law firm consultancy Adam Smith, Esq., 86% of the top 200 highest-grossing U.S. law firms now have at least two tiers of partnerships. Bruce MacEwen, president of Adam Smith, noted that non-equity partners allow firms to bill clients at higher rates than associates, without sharing in firm profits, giving firms economic advantages.
While the non-equity model is gaining traction, it has not been without controversy. Duane Morris, another U.S. law firm, faces a federal lawsuit from a San Diego-based lawyer who claims non-equity partners are unfairly required to cover firm expenses without receiving a share of profits. The firm has denied these allegations.
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