What is a Partner in a Law Firm? Roles, Responsibilities, and Paths to Partnership
What is a Partner in a Law Firm?
In a law firm, a partner is generally an attorney who has an ownership interest and shares in the firm’s profits and losses. Law firm partners are part owners who have a say in the management, strategy, and operations of the firm. The requirements and processes to make partners vary by law firm.
Partners represent the highest level an attorney can reach in private practice. Making a partner signifies leaving behind an associate role to become an owner of the law firm with a seat at the table in guiding the firm’s future direction.
Roles and Responsibilities of Law Firm Partners
While specific duties depend on the firm, law partners typically have the following key roles and responsibilities:
- Managing and Growing the Firm’s Practice – Partners participate in strategic decisions about the law firm’s practice areas, market focus, hiring, expansion, and long-term vision. Partners help manage and develop the firm’s caseload and client portfolio.
- Recruiting and Mentoring Associates – Partners often have a role in hiring new associate attorneys and summer interns. They also mentor and train associates to help them progress in their careers.
- Generating Business and Clients – Unlike associate attorneys who work on matters, partners are expected to independently develop new business and generate revenue by landing clients for the firm.
- Providing Legal Services – Partners usually continue practicing law and performing substantive legal work alongside any administrative partner duties. But their focus shifts from individual casework toward more big-picture duties.
- Management and Leadership – Partners help make high-level decisions on budgets, compensation, personnel issues, policies, legal technology, office space, and other matters that affect firm operations and finances.
- Investing Capital – Partners typically must invest capital into the firm upon being elected partner. This capital represents their ownership interest and is sometimes used to fund firm needs.
- Profit Sharing – One main advantage of a partnership is sharing in the overall profits of the firm. The division of profits is outlined in the partnership agreement.
Requirements to Make Partner at a Law Firm
The path to making partners is highly competitive at most firms. While each law firm sets its criteria, some common requirements include:
- Excelling as an Associate Attorney – Candidates must first succeed as an associate, providing top-level legal services to clients and demonstrating leadership abilities. Strong legal skills and work ethic are prerequisites.
- Business Development – Candidates must prove capable of attracting clients and generating revenue for the firm. Rainmaking abilities are essential to making profitable partner contributions.
- Years of Experience – Many firms require candidates to have at least 5-10 years of experience before being eligible to make a partner, although this timeline can vary.
- Votation by Existing Partners – Becoming a partner usually requires going through a votation process and receiving approval from the current partnership. This is often a political process based on proving one’s worth.
- Capital Contribution – New partners are typically required to invest significant capital upon their promotion to fund their ownership stake. This can be anywhere from $50,000 to over $200,000.
The timings and details of making a partner are formally laid out in the firm’s partnership agreement. Compensation and profit distributions are also governed by this governing document.
Non-Equity Partners vs. Equity Partners
Firms sometimes appoint “non-equity” partners who enjoy the title and some benefits of partnership but without true ownership rights. Equity partners, in contrast, hold a full ownership stake with voting rights, profit sharing, and risks/rewards.
Two-tier structures with both equity and non-equity partners have become common. This allows firms to promote promising senior associates to partner as an interim step before being eligible for equity partner down the road.
Salaried Partners vs. Profit-Sharing Partners
Another partner classification used at some firms is between salaried partners and profit-sharing partners. Salaried partners receive base compensation like senior associates. Profit-sharing partners partake in firm profits via distributions in addition to a base salary.
The tiers and classifications of partners vary significantly by law firm and are defined in the partnership agreement. The distinctions outline the different levels of ownership interest, decision-making authority, profit sharing, and risk exposure partners may hold.
Contract Partners and Retired Partners
Some law firms also utilize contract partners and retired partners. Contract partners are experienced attorneys brought in temporarily to work on specific matters, while otherwise maintaining outside practices.
Retired partners are generally former equity partners who have reduced their working role but still retain some minor ownership rights and profits in a retirement capacity. Different tiers exist here as well.
Key Takeaways on Law Firm Partners:
- Partners are attorney owners of a law firm with managerial and profit-sharing rights.
- Common duties include business development, mentoring associates, recruiting, and strategic decisions.
- Requirements to make a partner often include years as an associate, business origination, votation, and capital contribution.
- Equity, non-equity, salaried, contract, and retired partners represent different ownership levels.
- The partner role represents the pinnacle of private legal practice and is highly competitive.
- Partners have a seat at the table in determining the firm’s future direction and strategy.
