Zweig Group releases 2025 Principals, Partners & Owners Report of AEC Firms

Decreased financial autonomy among firm leaders. One of the most striking changes in this year’s report is the significant drop in the predetermined financial commitment limits that principals can authorize on behalf of the firm. The median amount fell from $500,000 in 2024 to just $150,000 in 2025 – a 70 percent decrease. The mean dropped even more dramatically, from $1.4 million to $662,143. These downward adjustments suggest firms are tightening financial controls, possibly in response to economic uncertainties or a growing emphasis on collaborative decision-making. 

Fewer founders among principals – especially women. The report also shows a decrease in the percentage of firm principals who are founders, particularly among women. In 2024, 25 percent of female principals reported being founders; in 2025, that number dropped to just 13 percent. The percentage of male founders also declined slightly from 37 percent to 32 percent. These findings could point to generational transitions in leadership or more merger-and-acquisition activity, leading to fewer founder-led firms. 

Gender disparities in entrepreneurial intentions. When asked whether they’ve ever considered leaving their current firm to start their own, 44 percent of male respondents said yes – up from 39 percent in 2024. In contrast, only 5 percent of female principals said yes, down from 13 percent the previous year. The widening gap suggests that while entrepreneurial aspirations remain strong among men, women in leadership may be facing persistent barriers or opting for different career strategies within established firms. 

Evolving eligibility criteria for principals. This year’s data also reflects a continued emphasis on leadership and business acumen as key qualifications for becoming a principal. Business development/sales abilities were the most cited eligibility requirement (56 percent, up from 54 percent), followed closely by staff management responsibilities (52 percent, up from 50 percent). Interestingly, fewer firms now cite licensure (45 percent, down from 53 percent) or project management experience (40 percent, down from 49 percent) as criteria – perhaps signaling a shift in how firms define leadership readiness, with more focus on strategic contributions and firm-wide influence. 

Continued commitment to internal ownership transitions. When it comes to eventual ownership divestment, the overwhelming majority of principals (82 percent) still prefer to sell their shares internally – unchanged from 2024. However, a slight uptick in those preferring acquisition by another firm (11 percent, up from 8 percent) suggests that external exit strategies are gaining a bit more traction. Meanwhile, fewer principals (7 percent, down from 10 percent) now say they would sell to the highest bidder regardless of buyer, hinting at a growing emphasis on preserving firm culture and continuity through internal succession.