Indian Law Firms Shift from Eat-What-You-Kill to Institutional Models

“globally, we are seeing a clear move away from purely individual, personal-production-based measures of success and profit division. Law firms are increasingly recognising group effort over individual effort, a firm-first rather than individual-first mindset, and the need to reward both financial and non-financial contributions to the partnership.”

“with a number of international firms now looking to open in India, recruit local lawyers, or merge with local law firms, this is imperative. It is also crucial for Indian firms to align more clearly with international standards, in order to attract the best people. Where partners have been judged primarily by financials, developing a very competitive and sometimes sadly a very toxic culture. Our own research shows that in some Indian law firms, partners have been competing against each other. Even reducing the prices to win work away from colleagues.”

“For decades, many Indian law firms have operated under the eat-what-you-kill model. The logic is intuitive: partners are compensated based on the revenue they personally generate through client origination and matter execution. You bring in business, you execute the work, you keep the profit. The firm provides brand and infrastructure, but partners operate with significant independence.”

“given the limitations of this model, which can spawn toxic control and creation of fiefdoms by partners within the law firm, SAM follows a modified lockstep model which remunerates everyone at a certain level equally, resets are done regularly based on performance etc. Thus, we are able to preserve performance differentiation while incentivising institutional behaviour and recognising that some years are good/better for some practices & partners than others. Our compensation model is such that everyone contributes to increasing the value of each point or unit. Rather than compensating partners purely on individual revenue, modified lockstep assesses contribution across multiple dimensions: revenue generation certainly, but also talent development, practice building, client relationship expansion, strategic initiative leadership, and governance participation. Partners receive points based on holistic contribution.”

“we are seeing a clear shift towards lockstep models, particularly among mid-tier and boutique firms. Even at the top end of the market, while pure eat-what-you-kill structures continue to exist, there is a noticeable move away from compensation being driven solely by financial metrics. Firms are increasingly introducing calibrated elements that reflect broader market expectations, without fully abandoning performance-linked economics.”

“What we strive for is a firm aspiring to scale, serve clients across multiple practices, and build a merit-based institution that transcends the current generation of partners. This approach changes what gets rewarded. Instead of incentivising only individual revenue generation, institutional contributions are compensated. A partner is not just a rainmaker who gets revenue to the table – for us, he is also someone who trains and mentors junior members of our firm to create a cohesive functional firm.”

“Young associates need partners invested in their growth. Succession has emerged as perhaps the most acute pressure. When partners retire or move, client relationships often disappear with them.”

“the profession has long debated the virtues of different compensation models. At its core lies a common objective: to reward merits while motivating the next generation and building institutions with consistent growth in practice. The traditional “eat-what-you-kill” model strongly incentivises individual rainmakers, but it also entrenches silos. By contrast, a thoughtfully modified hybrid model better reflects the collaborative needs of legal practice, where clients increasingly expect integrated teams, cross-practice expertise, and enduring institutional strength. Many firms are moving, or will move, inevitably, toward a balanced approach. Such models sustain long-term trust, collective commitments, encourage mentorship, and still allow significant meaningful recognition of individual performances.”

“Indian firms have always been behind the curve on equity fairness and client relationship ownership. It’s a long road ahead to find balance for what the Indian market needs, and till then, the flux is here to stay.”