Top Global Biglaw Firm Announces Nonequity Partnership Tier, Expands Lockstep Compensation

Above the Law

by Staci Zaretsky

February 20, 2026

AI-Generated Deep Dive Summary

Freshfields Brinkhaus Deringer, a top-tier global law firm ranked 13th by gross revenue, has made significant changes to its partnership structure and compensation model. The firm is introducing a nonequity partnership tier and expanding its lockstep compensation system. This shift reflects a broader trend among leading law firms aiming to enhance profitability while addressing competitive pressures in the legal market. Historically known for maintaining an all-equity partnership structure, Freshfields is now joining other elite firms like Cravath, Paul Weiss, and WilmerHale, which have recently adopted similar changes. These moves indicate a growing industry trend towards more flexible partnership tiers that allow firms to reward high performers without overburdening equity partners. The nonequity tier is designed to encourage profitability by creating an additional pathway for associates aiming for partnership. In addition to the new partnership tier, Freshfields is expanding its lockstep compensation model. Traditionally, lockstep involved all partners receiving the same base salary regardless of billable hours. By "stretching" this system, the firm is enabling higher rewards for top earners, particularly at senior levels. This approach aligns with previous changes made by Freshfields, such as moving away from a pure lockstep model in 2017 to better

Verticals

legalnews

Originally published on Above the Law on 2/20/2026