Should Your Firm Consider A Two-Tier Partnership System?

If your firm hires and retains only partnership-track associates, it could be turning away profitable legal talent. Offering a two-tier structure, with equity and non-equity partners, might make your firm more attractive to recent law school graduates while also helping you hold on to more experienced attorneys who need some flexibility.

Capital Contributions

Under a two-tier system, a firm has two different types of partners, with different responsibilities, roles and levels of financial commitment. Equity partners generally make a capital contribution and participate directly in the firm's profits. They are personally liable for the firm's debts and have ultimate control over its policies and strategic direction.