Rising stars safe stocks at top firms

Copyright © HT Digital Streams Limit all rights reserved. While a salary partner earns fixed fees and variable wages linked to performance, an equity partner is a partial owner with a role in the direction and management of the firm and shares his fate. Summary Historically, only the very senior, long -term salary partners made it to the equity partner at law firms. Things are changing – JSA significantly increased its share partner. This is the same story at Saraf & Partners. Trillegal only has share partners. What does the tendency explain? Top law firms are increasingly promoting their star -professional persons as share partners, rewarding performance and retaining loyalty as a talent war. While a salary partner earns fixed fees and variable wages linked to performance, an equity partner is a partial owner with a role in the direction and management of the firm and shares his fate. The trend is a change of the earlier practice of law firms that reward only their veteran partners with a shares. “We have significantly increased the number of share partners in the firm,” says Vivek K. Chandy, joint managing partner at JSA Advocates & Solicitors. The law firm now has 62 share partners, of 46 during the past financial year, and reaches an overall partner of 154. “Our growth strategy focuses on partners that match our values. Most share partners are taken care of from within the firm,” Chandy said. Over the past year, India has seen several high -profile partner movements. JSA Bolstered hired a 20-advocate team from Shardul Amarchand Mangaldas, including share partners Iqbal Khan and Ambarish. In June, Khan retires to join Cyril Amarchand Mangaldas (CAM). Meanwhile, Khaitan & Co saw partners Kalpana Unadkat and Shishir Mehta depart for the co-head of Ashurst’s India practice in London, which underlines the global appeal of Indian legal talent. At Trilegal, one of India’s latest law firms founded in 2000, all partners hold shares. “Each partner advancement – internal or lateral – is evaluated based on the candidate’s caliber, track record and capabilities. Each addition should increase profitability and just be a net adjusted for fairness in a medium term,” said Sridhar Gorthi, partner and member of the management committee at Trilegal. The law firm had at the end of the FY25 134 sharpeners, by 14% higher than the previous year’s 117. While a young lawyer had become a partner for almost two decades, many law firms nowadays promote their talented advocates as partners, even in the early thirties, Mint in October. “In my firm there is clearly a preference for equity partners over salary partners,” said Mohit Saraf, founder and managing partner of Saraf and Partners. “Both salary partner and equity partner are compensated based on the performance of his/her team – flat fee and variable fee. Equity partners also get part of the profit share of the firm,” Saraf said. Saraf and Partners have 42 partners, of which 21 are share partners. According to the law firm, three were made to equity partners last year. Meanwhile, CMS Induslaw has no preference for equity partners, co-founder and senior partner Suneeth Katarki said. “We are open to adding senior talent to the equity pool, especially those who can expand our market offering,” Katarki said. Although the firm has not yet announced its latest promotional round, it maintains a balanced approach. “Our decisions are based on talent needs,” he added. CMS Induslaw expects the number of stock partners to grow by 15-20% in the short term, powered by internal promotions and senior lateral rent, Katarki said. Although more share partners lead to ownership being divided, among other things, CMS Induslaw is not worried. “Some dilution is a natural and essential step if it leads to a larger profit pool and a stronger, sustainable partnership. Senior talent today expects fairness-if it is critical for long-term stability,” he said. A senior partner at a competitive firm said the granting of equity partnerships is no longer based on tenure. Many firms now bet on emerging sectors such as artificial intelligence, environmental, social and management (ESG), technology and environmental law, and if you expect it to cause future growth. “Stock promotions are used as a tool to maintain talent and deepen partner engagement. It is also a sign of the growth of the legal market, allowing more firms to afford their stock pools,” the partner said on condition of anonymity. In May, the Bar Council of India allowed foreign law firms to practice foreign and international law in India in a regulated, non-light capacity. However, after a setback from local law firms, the council drafted a committee to conduct a review of the plan. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #Equity Read Next Story