The average compensation of BigLaw partners increased by 26% in just two years, reaching a new high.
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Average BigLaw partner compensation increased 26% in 2 years, reaching this high-water mark
October 29, 2024, 10:35 am CDT
Average compensation for partners in larger law firms is $1.4 million, a record high that represents a 26% increase since 2022, according to a new survey by legal recruiting firm Major, Lindsey & Africa. (Image from Shuttertock)
Average compensation for partners in larger law firms is $1.4 million, a record high that represents a 26% increase since 2022, according to a new survey by legal recruiting firm Major, Lindsey & Africa.
The percentage increase, the largest in the history of the biennial survey, is mostly due to a 26% increase in average partner originations, according to the 2024 Partner Compensation Survey, available here. A 36% increase in billing rates also contributed to the increase.
Billable hours, however, are only 2% higher than the average reported in 2014, four years after the survey began. The average number of hours is currently 1,721; the 2024 Partner Compensation survey is based upon 1,718 responses by U.S. Partners at the top 200 firms in terms of gross revenue. The survey was conducted in the summer and asked for compensation information for 2023. Equity partners’ average earnings were $1.9 million while nonequity partners’ average earnings were $558,000. Average compensation for equity partners increased 32% since the 2022 survey, while the average for nonequity partners increased 21%.
The upward trend is expected to continue, according to an Oct. 24 press release.
Median compensation for all partners was a considerably lower $800,000, an indication that compensation at the highest levels is growing at a higher rate.
The survey also showed a compensation gap between male and female partners and between white and ethnically diverse partners.
Male partners earned an average of $1.6 million. The survey also showed a compensation gap between male and female partners, as well as between white and ethnically diverse partners. The gap varies based on ethnicity. The gap varies based on ethnicity.
Law.com covered the survey (here and here) and spoke with report co-author Louis Ramos, a Major Lindsey managing director.
“It’s definitely a good time to be a law firm partner,” he said.
