Equity partner job description

Nov 14, 2021

Written By Thomas Cserep

Becoming an equity partner of their law firm is the objective for many associates. By owning shares in the law firm, equity partners earn their salary from the profits of the company. Here we outline the role of an equity partner and the responsibilities that come with it.

The role of an equity partner

Firstly, it’s important to differentiate between the different kinds of partnerships in the legal industry. Unlike salaried partners – who get a salary and bonuses based on the performance of the firm – equity partners own a share in the business, meaning their income is directly linked to its profits.

Shareholders can either be fixed-share or full-equity partners. Fixed-share equity partners receive a pre-agreed cut from the firm’s dividends for the relatively small amount of money they have invested in the company, whilst also having a say in certain decisions.

On the other hand, full-equity partners own a more significant percentage of the firm’s shares, allowing them to assert themselves at all decision making opportunities. They also take a sizeable portion of the profits generated by the company.

So, equity partners have a vested interest in making sure that the company continues to grow and attract clients.

Buying into a law firm and becoming an equity partner does not necessarily mean that you will receive a share of the profits straight away – you may need to wait a couple of years. In fact, it is not uncommon for equity partners to earn less than employees in the first couple of years as a shareholder. Therefore, equity partnerships need to be seen as a long-term investment pathway rather than a route to quick gains.

What are the responsibilities of an equity partner?

Equity partners have responsibilities that are very similar to that of salaried partners. However, in their position as shareholders they take on more responsibilities that concern the management of the law firm and its growth as a business.

Equity partners play an intrinsic role in the operation of the company, voting on key issues and influencing the firm’s direction of travel. Since they primarily assume managerial roles, equity partners are mostly involved in laying out the company’s business strategy and developing ways to increase profits.

As they are also the face of the company, they act as ambassadors of the firm in the legal industry. This involves raising awareness of the firm in the circle of potential clients and maintaining the business’ reputation. Additionally, they manage the client base and make sure that the law firm meets their needs.

What makes a good equity partner?

Equity partners need a diverse skill set to fulfil all their duties and help the company grow.

Firstly, they must demonstrate immaculate personal conduct and integrity to set an example to employees and disseminate a company culture that is both attractive to clients and enables the firm to succeed.

In addition to having commercial awareness and business management skills, it’s vital for equity partners to see the bigger picture and develop a long-term vision for the firm. This requires them to be able to think outside of the box and implement strategies that make the company attractive to clients.

A good equity partner also needs to be able to have good interpersonal skills to help manage the client base and the firm’s workforce. From dealing with internal conflicts to attracting clients, equity partners need to be able to resolve issues amongst employees to continue the smooth operation of the firm and convince potential clients that they can confide in the law firm for support in legal matters.

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