As it struggles to maintain its standing among New York’s elite firms, Shearman & Sterling is trying a new tactic: expanding its non-equity partner ranks. The move is likely to increase the firm’s profitability, at least in the short term. But it also carries risks.

Shearman announced last month that it is creating an expanded non-equity partner role for junior partners. The firm has also confirmed that it will be de-equitising some partners.