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No, the rat race is never over. It can be broken up into a few categories:
Non-equity partners are basically senior associates who have the title of partner, but they do not receive any shares or portion of the profits. They just receive a standard salary, and after tax implications of having the title partner often they will actually make less money in a year. Some law firms are using this now, because some clients prefer to work with people with the title partner.
When you first make partner you buy in at a small amount of stocks of the firm. So you will receive a portion of the overall profits, but you will receive a smaller portion than someone who more shares.
The longer you stay at a law firm and the more clients you bringing, you theoretically should be receiving more and more shares. Eventually, you become a senior partner. Some positions in the firm automatically get you more shares, such as managing partner. It’s worth noting that you can have a lot of shares very early on in your partnership career if you manage to bring in large clients. At the same time there are partners that I’ve been around for several years who won’t have that many shares because they don’t bring any clients, but they do a bulk of the work.
When you are no longer working at the firm, your shares are split or given to another partner.
All of this varies by firm, but that’s how the typical big law firm works is my understanding. Just sharing this here, because I had nobody to teach me this, and I had to figure it out kind of on my own throughout the years.
This was so helpful! (Ive only been in govt and in-house)