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 tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.
The post Top Global Biglaw Firm Announces Nonequity Partnership Tier, Expands Lockstep Compensation appeared first on Above the Law.
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 tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.
