Newly Merged Biglaw Megafirm Moves To All-Equity Partnership Model, Adopts New Partner Pay System
While many firms are introducing non-equity partnerships, this firm is going all in for all-equity.
During a time when Biglaw firms are shying away from all-equity partnerships and creating non-equity partnership tiers, a brand new megafirm is taking a stand and adopting an all-equity partnership model.
A&O Shearman — formed from the union of Allen & Overy and Shearman & Sterling, with nearly 4,000 lawyers, including 800 partners — recently announced that it will operate under an all-equity partnership structure. Both legacy firms had a mixture of equity- and non-equity partnerships, so this new framework is markedly different for attorneys at the firm.
In addition to the new partnership configuration, the firm announced a new pay plan for partners. The American Lawyer has additional information:
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Under the new system, the firm’s 800 or so partners will be assigned to one of three rungs on a modified lockstep, called ‘entry’, ‘core’ and ‘super’, the latter of which is reserved for the firm’s best performers, or “highflyers”, as one of the sources put it. …
Commenting on the changes, an A&O Shearman spokesperson said: “Our approach to partner remuneration for A&O Shearman is designed to allow the firm the flexibility to compete for and retain the very top talent while encouraging and rewarding the maxmium level of collaboration and teamwork, which bests serves our clients and partnership culture.”
The news of A&O Shearman’s new partnership layout comes hot on the heels of the firm announcing that it would cut 10% of its equity partnership by April 2025. Those affected by the decision have already been notified.
Best of luck to the firm as it embarks upon a new — and hopefully prosperous — partnership plan.
A&O Shearman Adopts 3-Level Lockstep Pay Model Amid Shift to All-Equity Partnership [American Lawyer]
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Staci Zaretsky is a senior editor at 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 X/Twitter and Threads or connect with her on LinkedIn.
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Luxury, Lies, And A $10 Million Embezzlement
