Another day, another Biglaw firm tinkering with the partnership model. The latest to join the growing trend is Sidley, the No. 6 firm on the 2025 Am Law 100 list, which recently announced the introduction of a nonequity partner tier. This move offers lawyers the prestigious title of partner without the full financial buy-in or payoff traditionally associated with it. As more firms rethink compensation structures, retention strategies, and paths to equity, the expansion of nonequity partnership continues to signal a broader shift in how Biglaw defines partnership itself.

Cravath, one of the first longtime holdouts, created a “salaried partner tier” back in November 2023, setting a precedent for other top-ranked firms. Following in their footsteps, firms like Paul Weiss, WilmerHale, Cleary, and Skadden have all announced similar plans, with each firm adding its own twist to the nonequity concept. This wave includes other notable firms such as Schulte Roth & Zabel, Debevoise, Arnold & Porter, Sullivan & Cromwell, and Freshfields, each launching their versions of the income or nonequity partnership tiers over the past few years.

The firmwide email from Sidley outlined the new income partner tier, but the roll-out has not been without its controversies. Sources indicate that associates and counsel, who were up for consideration this year, were taken aback by the sudden introduction of the nonequity tier, having received no prior indication that such a change was imminent. The discontent stems from what many see as an additional hurdle on their path to traditional equity partnership.

Despite the initial pushback, the industry seems poised to continue this trend. The reality is setting in across Biglaw that the esteemed title of "partner" may no longer carry the same implications it once did. As these structures become more normalized, lawyers may find themselves adjusting to a new status quo in their professional hierarchies and career trajectories.

Sidley's move into the income partnership model is just the latest in a series of strategic shifts aimed at adapting to evolving market demands and expectations within the legal industry. As firms across the board look to attract, promote, and retain top talent, the redefinition of partnership tiers appears to be a key element of their strategies.

Is your firm also planning to increase its nonequity partnership ranks? Please text (646-820-8477) or email ([email protected]) and share your experiences or insights. As Biglaw continues to evolve, staying informed and connected will be more crucial than ever.