There’s a quiet shift happening inside many law firms in 2025: not all partners are performing at the same level, and firms are becoming less willing to treat them as if they are.
According to benchmarking data from Thomson Reuters, the spread between high-performing partners and low-performing partners is growing wider. In Am Law 100 firms, the top third of partners now account for over 65% of total partner-generated revenue, up from 58% just five years ago.
That widening gap is reshaping internal conversations about profitability, succession planning, and lateral hiring strategy.
What’s Behind the Productivity Split?
Several factors are contributing:
- Client Consolidation: As corporate clients continue to consolidate their outside counsel relationships, origination is increasingly concentrated among senior rainmakers.
- Technology Efficiency: Tech-savvy partners are leveraging AI and automation to manage more matters with fewer billable hours.
- BD Disparities: Some partners actively engage in thought leadership, pitch teams, and cross-practice collaboration. Others maintain existing books with minimal business development.
This creates a new internal dynamic: partners operating in the same comp system, contributing vastly different value.
How Firms Are Quietly Responding
While most firms won’t say it out loud, many are taking measurable steps:
- Tightening promotion criteria: Firms are raising the bar for equity partnership, particularly in firms with underperforming nonequity tiers.
- Enhanced partner reviews: Evaluations now include broader metrics: collaboration, cross-sell potential, and client retention.
- Selective lateral hiring: Growth-minded firms are actively replacing stagnant books with portable, forward-facing partners.
According to the 2025 Law Firm Partnership Report by Fairfax Associates, more than half of firms surveyed plan to adjust their partnership structure within the next two years, largely to address performance imbalances.
What It Means for Senior Lawyers Considering a Move
Firms are more selective than ever—but they’re also hungrier for partners who can deliver in today’s market. That means:
- Lateral candidates with strong origination and collaboration track records are commanding stronger support packages.
- Integration planning is more rigorous, with clear expectations tied to contribution beyond year one.
- Underperforming partners are facing increased pressure, and in some firms, quiet exits.
For senior lawyers, understanding this dynamic isn’t just helpful—it’s critical. You want to land in a firm that rewards the full value you bring—but you also need to know how your performance will be measured in the years ahead.
Sources:
- Thomson Reuters Legal Executive Institute, 2024 Partner Productivity Benchmarks
- Fairfax Associates, 2025 Law Firm Partnership Report
Explore how Esquire Talent Consultants can streamline your talent acquisition process and connect you with top-tier legal talent.
