Partner Expectations Tighten: Top Law Firms Set $5M-$7M Annual Business Targets for Equity Partners.

Top law firms are increasingly setting explicit earnings expectations for their equity partners, with many requiring at least $5 million to $7 million in business annually. This trend is driven by increased competition, especially at the higher end of the market, and a greater emphasis on profitability. Firm leaders are becoming more transparent and communicative about partner business expectations, using these benchmarks to determine how profits should be shared.

The push for tiered partnerships has also contributed to clearer expectations for equity partners. Some firms are implementing penalties, such as holding back compensation points, for partners who fail to meet collections or realization goals. This shift reflects the evolution of law firms into billion-dollar businesses, with a focus on growth and increasing profits per equity partner.

While expectations vary by firm and sometimes within partnerships, there's a general trend towards stricter enforcement of performance metrics. The rise of non-equity partnerships and "super tiers" has further complicated the dialogue about partner expectations, creating larger gaps between top performers and others within the equity partnership.

Report by The American Lawyer