{"id":155240,"date":"2026-06-22T14:50:13","date_gmt":"2026-06-22T22:50:13","guid":{"rendered":"https:\/\/xira.com\/p\/2026\/06\/22\/biglaws-partner-pay-revolution-has-a-losers-bracket\/"},"modified":"2026-06-22T14:50:13","modified_gmt":"2026-06-22T22:50:13","slug":"biglaws-partner-pay-revolution-has-a-losers-bracket","status":"publish","type":"post","link":"https:\/\/xira.com\/p\/2026\/06\/22\/biglaws-partner-pay-revolution-has-a-losers-bracket\/","title":{"rendered":"Biglaw\u2019s Partner Pay Revolution Has A Losers\u2019 Bracket"},"content":{"rendered":"

We\u2019ve written a lot about the Biglaw partner compensation gold rush<\/a>, and for good reason, because the numbers keep getting more absurd. The top of the market has climbed from between $25 and $30 million<\/a> to up to $40 million<\/a> for the most coveted rainmakers. The hot lateral market has firms dangling multi-year guaranteed compensation packages<\/a> to lure high-value partners, and even the most devout lockstep loyalists<\/a> are cracking. But none of that money rains down evenly, and mid-year is when some partners find out which side of the ledger they\u2019re on.<\/p>\n

As Law.com reports<\/a>, the same forces remaking partner compensation at the top are squeezing partners in the middle and at the bottom. Some partners see a pay cut because of a drop: in originations, business, hours, or overall performance. But the headline grabbing changes to firms\u2019 compensation systems (to better attract and retain star partners) is also to blame.<\/p>\n

This isn\u2019t a new phenomenon, but it\u2019s an accelerating one. Pure lockstep<\/a> is now nearly extinct in Biglaw, and in its place, firms have adopted more discretionary systems specifically designed to concentrate rewards at the top. Cravath\u2019s creation of a salaried partner tier in 2023 opened the floodgates<\/a>, with Paul Weiss, WilmerHale, Cleary, Skadden, Debevoise, Sullivan & Cromwell, and most recently Freshfields<\/a> all adding nonequity tiers. The structural logic of that shift, creating flexibility to pay stars more without inflating the equity base, also creates flexibility for partners on the way down.<\/p>\n

So how many partners are looking at a pay cut in any given year? Great question! Consultants estimate 10% to 30% of partners within a firm could be moved down the pay ladder. Blane Prescott, managing shareholder at MesaFive, told Law.com that it \u201cwouldn\u2019t be the least bit surprising\u201d for a firm to move 20% of its partners down in pay in a given year. He added that the firms that handle it best are the ones that communicate early and often, and don\u2019t let the year-end conversation be a partner\u2019s first inkling that something is wrong.<\/p>\n

\u201cOne of the most effective tools: firms will do a midyear check-in with partners, who they\u2019re concerned have all the early signs of someone who might need to go down,\u201d Prescott said. \u201cYou go to them and say, \u2018I\u2019m worried about you. We want to get your economics up, get your work up to where it should be. But hey, if this gets to the end of the year, you might be flat or might go down.’\u201d<\/p>\n

Prescott said around 20% to 30% of partners will respond by upping their game\u2026 and if they don\u2019t, at least the proper expectations are set, which is, frankly, the real point.<\/p>\n

\u201cSo when you do cut their compensation at the end of the year, they\u2019re not shocked. They\u2019re not walking around the firm complaining about it. And that\u2019s probably the best thing. You don\u2019t want them whining around the halls about it,\u201d he said.<\/p>\n

For his part, Jeffrey Lowe, partner and market president for Washington, D.C. at recruiting firm CenterPeak, noted, \u201cIt rarely comes as a surprise to partners who are getting cut. Or, it shouldn\u2019t be a huge surprise for a big number of them.\u201d<\/p>\n

So\u2026 how much do underperforming partner see their pay cut? Like any true lawyer question, it depends! \u201cThe practices can be so variable from year to year, so you can see people seeing huge percentage swings,\u201d Lowe said. \u201cAnd it may also be a function of \u2018You know what? We didn\u2019t do it last year when we really should have. Or the year before, and you kind of got a couple years free on us. But we can\u2019t sustain it any longer.\u201d<\/p>\n

\u201cA lot of firms will tell you: \u2018We\u2019re slow to go up, or slow to go down.\u2019 Others are just the opposite,\u201d Lowe said. And these choices build a Biglaw firm\u2019s culture, \u201cEverybody loves living by the sword, but they really hate dying by the sword.\u201d<\/p>\n

Which is, in fairness, a pretty apt summary of the whole Biglaw partner compensation era we\u2019re living through. The partner pay gap<\/a> keeps stretching, and someone has to be on the wrong end of it.<\/p>\n

\n

\"\"<\/p>\n

Kathryn Rubino is a Senior Editor at Above the Law, host of\u00a0The Jabot podcast<\/a>, and co-host of\u00a0Thinking Like A Lawyer<\/a>. AtL tipsters are the best, so please connect with her. Feel free to email\u00a0her<\/a>\u00a0with any tips, questions, or comments and follow her on Twitter\u00a0@Kathryn1<\/a>\u00a0or Bluesky\u00a0@Kathryn1<\/a><\/em><\/strong><\/p>\n

The post Biglaw\u2019s Partner Pay Revolution Has A Losers\u2019 Bracket<\/a> appeared first on Above the Law<\/a>.<\/p>\n

<\/em><\/strong><\/p>\n

\"\"<\/figure>\n

We\u2019ve written a lot about the Biglaw partner compensation gold rush<\/a>, and for good reason, because the numbers keep getting more absurd. The top of the market has climbed from between $25 and $30 million<\/a> to up to $40 million<\/a> for the most coveted rainmakers. The hot lateral market has firms dangling multi-year guaranteed compensation packages<\/a> to lure high-value partners, and even the most devout lockstep loyalists<\/a> are cracking. But none of that money rains down evenly, and mid-year is when some partners find out which side of the ledger they\u2019re on.<\/p>\n

As Law.com reports<\/a>, the same forces remaking partner compensation at the top are squeezing partners in the middle and at the bottom. Some partners see a pay cut because of a drop: in originations, business, hours, or overall performance. But the headline grabbing changes to firms\u2019 compensation systems (to better attract and retain star partners) is also to blame.<\/p>\n

This isn\u2019t a new phenomenon, but it\u2019s an accelerating one. Pure lockstep<\/a> is now nearly extinct in Biglaw, and in its place, firms have adopted more discretionary systems specifically designed to concentrate rewards at the top. Cravath\u2019s creation of a salaried partner tier in 2023 opened the floodgates<\/a>, with Paul Weiss, WilmerHale, Cleary, Skadden, Debevoise, Sullivan & Cromwell, and most recently Freshfields<\/a> all adding nonequity tiers. The structural logic of that shift, creating flexibility to pay stars more without inflating the equity base, also creates flexibility for partners on the way down.<\/p>\n

So how many partners are looking at a pay cut in any given year? Great question! Consultants estimate 10% to 30% of partners within a firm could be moved down the pay ladder. Blane Prescott, managing shareholder at MesaFive, told Law.com that it \u201cwouldn\u2019t be the least bit surprising\u201d for a firm to move 20% of its partners down in pay in a given year. He added that the firms that handle it best are the ones that communicate early and often, and don\u2019t let the year-end conversation be a partner\u2019s first inkling that something is wrong.<\/p>\n

\u201cOne of the most effective tools: firms will do a midyear check-in with partners, who they\u2019re concerned have all the early signs of someone who might need to go down,\u201d Prescott said. \u201cYou go to them and say, \u2018I\u2019m worried about you. We want to get your economics up, get your work up to where it should be. But hey, if this gets to the end of the year, you might be flat or might go down.’\u201d<\/p>\n

Prescott said around 20% to 30% of partners will respond by upping their game\u2026 and if they don\u2019t, at least the proper expectations are set, which is, frankly, the real point.<\/p>\n

\u201cSo when you do cut their compensation at the end of the year, they\u2019re not shocked. They\u2019re not walking around the firm complaining about it. And that\u2019s probably the best thing. You don\u2019t want them whining around the halls about it,\u201d he said.<\/p>\n

For his part, Jeffrey Lowe, partner and market president for Washington, D.C. at recruiting firm CenterPeak, noted, \u201cIt rarely comes as a surprise to partners who are getting cut. Or, it shouldn\u2019t be a huge surprise for a big number of them.\u201d<\/p>\n

So\u2026 how much do underperforming partner see their pay cut? Like any true lawyer question, it depends! \u201cThe practices can be so variable from year to year, so you can see people seeing huge percentage swings,\u201d Lowe said. \u201cAnd it may also be a function of \u2018You know what? We didn\u2019t do it last year when we really should have. Or the year before, and you kind of got a couple years free on us. But we can\u2019t sustain it any longer.\u201d<\/p>\n

\u201cA lot of firms will tell you: \u2018We\u2019re slow to go up, or slow to go down.\u2019 Others are just the opposite,\u201d Lowe said. And these choices build a Biglaw firm\u2019s culture, \u201cEverybody loves living by the sword, but they really hate dying by the sword.\u201d<\/p>\n

Which is, in fairness, a pretty apt summary of the whole Biglaw partner compensation era we\u2019re living through. The partner pay gap<\/a> keeps stretching, and someone has to be on the wrong end of it.<\/p>\n

\n

\"\"Kathryn Rubino is a Senior Editor at Above the Law, host of\u00a0The Jabot podcast<\/a>, and co-host of\u00a0Thinking Like A Lawyer<\/a>. AtL tipsters are the best, so please connect with her. Feel free to email\u00a0her<\/a>\u00a0with any tips, questions, or comments and follow her on Twitter\u00a0@Kathryn1<\/a>\u00a0or Bluesky\u00a0@Kathryn1<\/a><\/em><\/strong><\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

We\u2019ve written a lot about the Biglaw partner compensation gold rush, and for good reason, because the numbers keep getting more absurd. The top of the market has climbed from between $25 and $30 million to up to $40 million for the most coveted rainmakers. The hot lateral market has firms dangling multi-year guaranteed compensation […]<\/p>\n","protected":false},"author":3,"featured_media":155241,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-155240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-above_the_law"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/xira.com\/p\/wp-content\/uploads\/2026\/06\/IMG_5243-1-scaled-e1623338814705-620x568-lvIzcR.jpg?fit=620%2C568&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts\/155240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/comments?post=155240"}],"version-history":[{"count":0,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts\/155240\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/media\/155241"}],"wp:attachment":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/media?parent=155240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/categories?post=155240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/tags?post=155240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}