Shearman & Sterling Loses 8% of Partners as BigLaw Lateral Moves Surge
Shearman & Sterling lost 8% of its partners in 2025, reflecting BigLaw's rising lateral mobility.
Why it matters: Partner departures disrupt client continuity and firm culture, and force leadership to reexamine retention and compensation strategies. As industry-wide competition for talent intensifies, both firms and clients must navigate shifting alliances and evolving service models.
- Shearman & Sterling disclosed an 8% partner departure rate for 2025.
- The 200 largest U.S. firms saw 979 partner laterals in Q1 2026—a six-year high.
- Elite firms, including Cravath, are seeing historically rare partner exits.
- Firms like Sidley Austin are creating new non-equity tiers to address retention.
Shearman & Sterling reported 8% of its partners departed in 2025, highlighting a spike in BigLaw lateral activity and competitive retention pressures across top U.S. firms.
- Macrae data shows 3,521 lateral hires (979 partner laterals) in Q1 2026 among the 200 largest firms—incidentally, the highest partner move figure since 2020.
- The mobility trend is impacting even the steadiest brands. Cravath saw a spate of exits in early 2026, with Greene-Levin-Snyder’s Alisa Levin noting, "Cravath is not immune to all the market forces that are affecting every other top firm."
- Firm strategy is shifting: Sidley Austin’s roll-out of a new non-equity partner tier is one response, aiming to increase retention and flexibility.
- Moray McLaren, Partner at Lexington Consultants, notes that organizational changes—including mergers—often precipitate partner departures: “You simply can’t please all of the people, all of the time.” (read more).
Attrition isn’t limited to partners: One NALP survey finds about 82% of junior associates leave firms within five years. ABA Journal reports that replacing just one third-year associate can cost over $1 million—underscoring rising stakes as firms adapt talent strategies in a fast-moving market.
By the numbers:
- 8% — Shearman & Sterling's 2025 partner attrition rate
- 979 — Number of partner lateral moves in Q1 2026 among the top 200 U.S. firms
- $1 million+ — Estimated cost to replace a third-year associate
Yes, but: Despite elevated attrition, some BigLaw firms report increased recruitment of lateral partners to backfill gaps and drive new business lines, offsetting some impacts.
What's next: Watch for further reporting when full-year 2026 partner lateral figures are released by Macrae and NALP.