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Growth of ‘Income Partners’ Complicates Setting Pay for Nonequity Partners
Law firms are seeing complications in setting competitive pay for nonequity partners, as the number of so-called income partners rapidly grows.
Often, pay for nonequity partners can approach or overlap with compensation of senior associates, counsel as well as some equity partners, firm leaders and consultants say.
The increasingly blurry pay lines between the lawyer ranks are causing some conflicts. Law firms could lose some nonequity partner talent if firms don’t appear to be paying them more than senior associates, or if some nonequity partners are earning as much as equity partners but don't have the benefits that come along with equity ownership, observers say.
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