BigLaw Firms Shift from Lockstep to Market-Based Partner Pay Models
BigLaw firms from Debevoise to Cravath are adopting market-based partner pay models in 2023-26.
Why it matters: This shift alters law firm economics, partner incentives, and career paths, affecting hiring and retention decisions for legal professionals and talent strategists.
- Debevoise & Plimpton launched a partner bonus pool in May 2026 to reward top performers.
- Cravath created a salaried partner tier in November 2023, prompting similar moves at other firms.
- Freshfields introduced a nonequity partnership tier in February 2026, joining WilmerHale and Cleary Gottlieb.
- Elite BigLaw partners can now earn $25 million+ annually, reflecting changed compensation dynamics.
BigLaw firms are moving away from traditional lockstep partner pay toward market-based compensation models. Debevoise & Plimpton added a partner bonus pool in May 2026 to incentivize high performers and strengthen talent retention. Peter Furci, Debevoise's Presiding Partner, emphasized the importance of aligning pay with firm strategy and attracting talent.(Above the Law May 2026)
Earlier, Cravath started a salaried partner tier in November 2023. This model offers fixed compensation rather than traditional equity shares, prompting firms like Paul Weiss and Sullivan & Cromwell to consider similar approaches.(Above the Law March 2026)
Freshfields joined the trend in February 2026 by launching a nonequity partnership tier, following WilmerHale and Cleary Gottlieb, who introduced similar tiers in 2024. These tiers provide flexibility in compensation and partnership status without full equity rights.
Davis Polk & Wardwell adjusted its compensation from strict lockstep to a hybrid model to better compete for high-producing "rainmaking" partners, reflecting broader industry competition for top talent.(General Counsel News)
The compensation landscape is also shifting at the high end. JD Journal reports that elite law firm partners are earning $25 million or more per year, signaling significant changes in earnings potential and firm economics.(JD Journal February 2026)
These changes reshape law firm partnership culture, impact career advancement decisions, and require in-house legal teams and law firm leaders to adjust talent strategies accordingly.
By the numbers:
- May 2026 — Debevoise & Plimpton launched partner bonus pool
- November 2023 — Cravath created salaried partner tier
- $25 million+ — Annual earnings for elite BigLaw partners
Yes, but: Some firms continue to maintain lockstep models or hybrid systems, balancing tradition with market responsiveness.
What's next: Continued evolution of partnership models is expected through 2027, with more firms likely adopting nonequity or salaried tiers.