Cravath Implements New Partner Tier to Enhance Compensation and Retain Top Legal Talent
Cravath, Swaine & Moore has introduced a salaried partner tier, joining other Wall Street law firms in restructuring their pay models to adapt to changing market dynamics. The move allows the firm to retain and promote exceptional talent while freeing up cash for top partners. The creation of non-equity partner tiers has become more common as firms seek to attract and retain talent and provide flexibility in compensation. Cravath's decision follows reports that peer firm Paul, Weiss, Rifkind, Wharton & Garrison is considering adopting a similar tier in 2024. The move away from lockstep compensation and single-tier partnerships is driven by competition in the hiring market. Cravath, known for its top-tier deals practice, has made other significant changes, including loosening its lockstep pay model and opening new offices.