Law Firm Partner Compensation Models – Equity vs. Non-Equity Economics and ROI

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The legal industry has entered a new era of partner compensation, and our newly released in-depth report by BCG Attorney Search presents a comprehensive assessment of how compensation structures are evolving across law firms of varying size and type. Relying on data from major industry sources—including the American Bar Association (ABA), the National Association for Law Placement (NALP), and AmLaw financial disclosures—the report sheds light on key metrics such as equity vs. non-equity partner ratios, capital contributions, compensation models, and long-term return on investment (ROI).

Learn more from this report: Law Firm Partner Compensation Structures: Analysis of Equity vs Non-Equity Economics and ROI

Key Findings at a Glance

  

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• The traditional single-tier equity partnership model has largely been replaced; among AmLaw 50 firms, 84% now operate three-or-more tier partnership structures, up from just 35% in 2010.
• Equity partners now account for approximately 43% of total partners at AmLaw 100 firms, down from 72% in 2010, and are projected to reach as low as 34% by 2030.
• Compensation disparities between equity and non-equity partners are substantial: at leading firms, equity partners earned an average of $3.24 million in 2024, versus $775,000 for non-equity partners—a ratio of approximately 4.2 : 1.
• Capital contributions required to enter equity partnership have surged: for AmLaw 50 firms, the average buy-in now stands at $550,000, representing about 25–30% of first-year partner compensation.
• Time to equity partnership and odds of attaining it differ significantly by firm type. For example, in AmLaw 50 firms the average path to equity is 10.3 years, while in boutique firms it is just 6.2 years.

What This Means for Attorneys and Firms
For attorneys evaluating partnership opportunities, the implications are clear: it’s no longer enough to look solely at potential income. Understanding the compensation model, the required capital investment, the time to equity track, and the probability of achieving equity status are all critical considerations. Our study highlights that many so-called “non-equity” partner positions are no longer transitional but may represent permanent roles with limited upside in ownership or profit share.

For firm leadership, these trends create both opportunity and tension. More sophisticated multi-tier structures allow firms to manage growth, protect profits per equity partner (PPEP), and reward salaries without diluting ownership. However, they may also challenge traditional notions of shared ownership and firm culture. The move away from pure lockstep models (only 8% of AmLaw 50 firms remain locked-step) toward formula-based or subjective compensation systems further underscores the shift toward performance-driven economics.

Final Take-away
The landscape for law firm partnership is changing dramatically. Firms are evolving into structures that increasingly resemble corporate hierarchies: multi-tier partnerships, large capital contributions, distinct compensation models, and shifting timelines. The path to equity—and the ROI on that partnership—demands rigorous analysis from both the legal professional and the firm side. Our report arms industry participants with the insights necessary to navigate this transformation with clarity and purpose.

Learn more from this report: Law Firm Partner Compensation Structures: Analysis of Equity vs Non-Equity Economics and ROI