The Risk of Weaseling Into Equity: Why Law Firms Must Be Careful With New Partners
The Equity Trap
I’ve seen it too often: a lawyer “weasels” into equity by over-inflating their worth or touting recent results. Once in, they underperform — but because they’re an equity partner, they’re almost impossible to remove or “coach up.”
Granting equity too quickly is one of the most dangerous mistakes firms make.
The Fallout
Cultural Resentment. Teams notice when partners don’t pull their weight.
Performance Drag. Other leaders carry the load.
Strategic Paralysis. Underperforming partners block tough decisions.
Equity Dilution. Founders lose both control and profits.
Example: The Partner Who Couldn’t Deliver
One firm I advised brought in a lateral partner who promised big clients. The results didn’t materialize — and the partner was locked in. Morale tanked, equity was diluted, and resentment spread. They lost multiple high performers which resulted in over $1M in lost revenue to the firm.
The Smarter Path: Roadmaps, Not Handouts
Set Performance Benchmarks. Make equity contingent on results.
Design Partner Roadmaps. Show how new leaders can earn their way in.
Protect Founder Equity. Don’t dilute until performance proves value.
Review Regularly. Equity is a privilege, not a one-time handout.
(I’ve written before about holding on to founding partner equity, and this connects directly — equity decisions shape culture and control more than any other.)
The COO’s Role
A fractional COO helps:
Create partner performance scorecards.
Design transparent roadmaps to equity.
Protect firm culture by aligning expectations.
The Bottom Line
Equity can build or break a firm. Be cautious about who you give it to — and make sure it’s earned, not weaseled into.
At ING Collaborations, I help firms design equity structures that protect culture and profitability. If you want growth without diluting your power, let’s talk.