Law firms lavish equity roles on more partners

Equity partners share profits; salaried earn fixed, performance-based pay

- Priyanka Gawande

Top law firms are increasingly promoting their star professionals as equity partners, rewarding performance and retaining loyalty as a talent war rages.

While a salaried partner earns fixed fees and variable pay linked to performance, an equity partner is a part-owner with a role in the direction and management of the firm, sharing its fortunes. The trend marks a change from the earlier practice of law firms rewarding only their veteran partners with an equity stake.

"We have significantly increased the number of equity partners in the firm," said Vivek K. Chandy, joint managing partner at JSA Advocates & Solicitors. The law firm now has 62 equity partners, up from 46 over the past fiscal year, reaching an overall partner count of 154. "Our growth strategy focuses on partners who align with our values. Most equity partners are groomed from within the firm," Chandy said.