Managing Partner, Lotis Blue Consulting | Serving the C-suite and Boards of major firms on strategy - structure and organization - performance and compensation
Many firms are growing their non-equity partner ranks, but is it really working? It sounds like a great idea… create a non-equity tier to give promising talent a partner title. But the reality is - It can backfire. You build a big layer of non-equity partners who: → Command high salaries → Can’t bring in enough business → Struggle to justify their rates to clients → And who most often do not have a clear understanding for what it will take to earn the equity partner title Why? Because they aren’t being developed into the rainmakers you need. They’re stuck in the middle. The result? You fill your firm with partners who are expensive but not driving growth. Clients question why they’re paying premium rates for work that should be delegated lower. It becomes harder to push them up—or out. Here’s what you can do: 1️⃣ Clarify the role. What’s the purpose of the non-equity partner position? Is it a stepping stone to equity or a long-term career role? Be clear about what success looks like at this level. 2️⃣ Set expectations for growth. Non-equity partners should be focused on developing new business and client relationships not just billing hours. 3️⃣ Avoid title inflation. Promoting too many people too quickly dilutes the value of the role. Be selective and make sure the role adds value to the firm’s overall strategy. The goal isn’t to create a comfortable holding spot. It’s to build a pipeline of future equity partners who: - Lead teams - Drive revenue - Make the firm stronger. If you’re not careful, your non-equity track could become a dead end.
