Freshfields Bruckhaus Deringer has enacted a significant overhaul of its partnership structure, introducing a nonequity partner tier. This change allows the firm to promote senior lawyers without immediately offering equity, providing more flexibility in talent retention and reward. The firm's modified lockstep compensation system has also been adjusted to offer higher rewards for top-performing partners, specifically in the U.S. market, where compensation can now reach $17 million or more.
These modifications are part of Freshfields' strategy to implement more performance-driven compensation structures. The firm reported a total revenue of £2.25 billion for the fiscal year 2024–25, with U.S. revenue contributing £473 million. This substantial U.S. revenue highlights the critical role of that region in Freshfields' growth objectives. The evolving partnership and compensation model aims to maintain competitiveness within a legal market characterized by escalating compensation for leading legal talent.
This move by Freshfields mirrors a broader trend among major law firms. Other firms that have recently introduced nonequity tiers include Cravath Swaine & Moore (2023), Paul, Weiss, Rifkind, Wharton & Garrison (2024), and Cleary Gottlieb Steen & Hamilton (2024). Debevoise & Plimpton and Skadden, Arps, Slate, Meagher & Flom also instituted nonequity tiers in late 2025. These changes are designed to protect profitability and manage profit per equity partner. Freshfields has historically modified its lockstep system, moving away from a pure lockstep model around 2017 to address partner departures and increase flexibility [law.com].
