Biglaw firms with single partnership tiers are now few and far between, with more big-name firms showing that they’re ready, willing, and able to welcome nonequity partners to their ranks.
Cravath was one of the first longtime holdouts to cut bait and create a “salaried partner tier” (i.e., nonequity partners) back in November 2023. That move gave other highly ranked firms permission to tread the same path, including Paul Weiss, which announced its new two-tier partnership plan in March 2024; WilmerHale, which added a nonequity partnership tier in August 2024; Cleary, which announced its own new partnership platform in October 2024; Skadden, which began considering a nonequity level in February 2025; and Schulte Roth & Zabel, which announced an income partnership tier in March 2025 (prior to its merger with McDermott); and Debevoise, which created its nonequity partnership track in June 2025.
Now, we’re seeing reports that Sullivan & Cromwell, the #25 firm in the country by gross revenue, has not only decided to develop its own nonequity partner tier, but at the same time, the firm has rolled out a new bonus program, all in the hope of improving retention and offering more partnership opportunities for attorneys. The American Lawyer has the scoop:
The firm has a new “income partner” position, also known as a nonequity partner tier. Lawyers in these positions will “work alongside our equity partners, who will continue to own and govern the firm” and “create a new pathway to partnership for more of our lawyers,” according to the memo.
Sources familiar with the matter said S&C doesn’t have a specific target number for how many nonequity partners it will make, but the firm will have a “strict standard” for the process. The sources said the expectation is that those who become income partners will be groomed for equity partnership and the firm will continue to promote some associates directly into the equity partnership.
As far as S&C’s new “discretionary enhanced associate bonus” program is concerned, only third-year associates and above who are in the top 10% of their practice group by hours will be eligible to receive them these extra funds, in addition to the firm’s regular bonus program. The new bonus is performance-based, including hourly billing (as well as pro bono work), plus attorneys’ other “contributions” to the firm. The firm’s memo notes that these bonuses will reward “those who consistently surpass [traditional expectations].”
Last, but certainly not least, SullCrom is now pledging to pay associates $50,000 bonuses through its new “lawyer referral bonus program” for those who “successfully refer an associate or counsel.” Half of the money will be paid when the referred lawyer starts, with the rest set to hit accounts after the referral completes one year at the firm.
Sullivan & Cromwell is certainly doing a lot in its efforts to improve attorney retention, recruitment, and satisfaction — but will it work? Stay tuned. In the meantime, best of luck to the firm as it moves ahead with its income partnership program, and congratulations to the select associates at the firm who will be receiving enhanced discretionary bonuses.
Is your firm planning to increase its nonequity partnership ranks? Please please text us (646-820-8477) or email us and let us know. Thanks.
Sullivan & Cromwell Creates Income Partner Track, Bonus Plan and Referral Program [American Lawyer]
Staci Zaretsky is the managing editor of Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.