While Clifford Chance may be the latest firm to enter a legal battle with former partners over compensation clawbacks, it certainly isn’t alone, as pay disputes between firms and outgoing partners are becoming more common, amid rising partner pay and lateral movement.
The legal industry is going through the same leadership reckoning playing out across the Fortune 1000. The pioneers are already on the far side of the river. The settlers are crossing. And the stragglers are still deciding whether to go. Which camp are you in? And more importantly, who are you learning from right now?
At a time when Big Law partner pay flexibility is key, law firms are leaning on bonuses and a mix of partner equity and cash to reward top performers and entice lateral partners, industry observers say. Some firms are even dangling “triple-bonus” packages.
Big Law competition for top real estate partners has accelerated in 2026 amid heightened client demand in their practices and a growing alignment between real estate and energy practices for data center work.
If you want sustainable revenue growth, you cannot treat rainmaking as a personality trait. You must treat it as a professional discipline — one that is intentionally developed through structured partner development based on a proven framework.
To win the talent war in this free-agency era of partner movement, firms must have a war chest. After all, anything is on the table now, recruiters say, when it comes to lateral moves.
By definition, equity partners are law firm owners and investors, share in the profits, and are collectively responsible for overall strategy and management. Yet, when only a handful of people are involved in a monumental decision such as a merger, it’s clear that the definition of “partnership” has changed.
On Jan. 14, 2025, the Treasury Department issued final regulations designating certain related-party partnership basis shifting transactions as “transactions of interest.” Although this designation does not affect the substantive tax characterization of these transactions, it imposes significant reporting requirements on taxpayers and their advisors.
With law firms continuing to face heightened market and industry pressures, business development is essential for both law firm growth and individual lawyer success. However, coaching lawyers to become effective rainmakers presents unique challenges.
With a growing number of firms moving to a two-tier partnership structure, the question becomes what comes next for the dwindling number of major firms that don't have a nonequity tier. At what point do tradition and culture yield to change and progression?
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