Legislation Companies
In ‘pervasive’ pattern, some legislation corporations reward companions by creating new tiers or extra shares
July 16, 2025, 2:00 pm CDT
Some legislation corporations are including extra certainty and fairness for prime rainmakers by creating new tiers or extra shares to spice up their base compensation, in line with a report by Legislation.com.
The modifications to compensation construction are “probably the most pervasive traits” proper now, says legislation agency pay marketing consultant Blane Prescott, who spoke with Legislation.com earlier this yr.
One agency making a change is Paul, Weiss, Rifkind, Wharton & Garrison, the article says. Below its prior system, prime performers acquired 500 shares within the agency and have been eligible for a bonus along with their share compensation. Final yr, the agency modified the system to award greater than 500 shares to prime companions whereas lowering eligible bonus quantities. That tied larger compensation to fairness and made it extra predictable.
One other instance is Latham & Watkins, which makes use of a points-based compensation system. Beforehand companions have been assigned 300 to 900 factors. The legislation agency created two new tiers of factors in order that prime performers get 1,300 or 1,700 factors, resulting in a rise in base pay, in line with a prior Legislation.com report on the change.
Growing base compensation for prime performers can go away extra money within the bonus pool for different companions, mentioned legislation agency marketing consultant Lisa Smith in an interview with Legislation.com. She warned of a draw back, nonetheless.
As companions scramble to be positioned in larger fairness tiers, corporations might fall sufferer to a type of grade inflation, she mentioned. Companies will should be very clear about what sort of efficiency is required to realize the highest ranges.
“Managing these sorts of expectations turns into vital,” Smith informed Legislation.com.
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