Biglaw Salary News: How Much Do Lawyers Make in Top Law Firms?
Ben Thomson – Biglaw firms are known for their high salaries, prestigious clients, and demanding workloads. But now, with more challenging economic conditions, they are making news about layoffs rather than big pay packets. But – make no mistake – there is still big money made by the big money big law firms
As we have shown in our list of the 30 most prestigious law firms in the world, the biglaw firms are often located in major cities like New York, London, Los Angeles, and Chicago, and they offer a wide range of legal services to corporations, financial institutions, and other large organizations.
One of the defining characteristics of Biglaw firms is their compensation structure.
Associates at these firms can earn six-figure salaries right out of law school, and their pay increases dramatically as they gain more experience. Biglaw firms are also known for offering generous bonuses and other perks to their associates, such as paid time off, health insurance, and retirement benefits.
While the high salaries and benefits offered by biglaw firms are certainly attractive, they come with a price. Associates at these firms are expected to work long hours, often well into the night and on weekends.
They may also be required to travel frequently and work on high-stakes cases with tight deadlines. Despite these challenges, many law graduates aspire to work at a Biglaw firm, seeing it as a pathway to success and financial stability in their legal careers.
What is BigLaw?
BigLaw refers to large law firms that have a global presence and handle complex legal matters for corporations, financial institutions, and other high-profile clients. These firms typically have more than 500 lawyers, and their revenue can reach billions of dollars annually. They are known for their high salaries, demanding workloads, and prestige.
BigLaw firms are often categorized as “white-shoe” law firms, meaning they have a reputation for being traditional and conservative.
They often have strict dress codes and formal office environments. However, in recent years, many BigLaw firms have become more progressive, embracing diversity, and adopting flexible work arrangements.
Working at a BigLaw firm can be incredibly challenging but also rewarding. Associates at BigLaw firms are expected to work long hours and often on weekends.
They are also expected to produce high-quality work and meet strict deadlines. However, in return, they are compensated generously with high salaries, bonuses, and other perks.
BigLaw Salary Overview
Starting Salaries
In 2022, the starting salary for first-year associates at large law firms in the United States increased to $215,000.
This increase was started by Milbank, and many other firms followed suit. However, not all firms pay the same starting salary, and smaller firms may offer lower salaries.
Salary Increases
BigLaw associates can expect to receive regular salary increases as they progress through the ranks. The salary scale for associates typically increases every year, with the largest increases occurring between the first and third years.
However, salary increases may vary depending on the firm and the market. Associates who perform well may also receive additional bonuses and raises outside of the regular salary scale.
Bonus Structures
In addition to base salaries, BigLaw firms often offer bonuses to associates. Bonuses are typically awarded at the end of the year and are based on the associate’s performance and the firm’s profitability.
Bonus amounts can vary widely depending on the firm and the market.
For example, in 2023, 5th Year Associates were paid $19,500 (Spring), $32,500 (Fall) and $18,000 (Annual). 6th Year Associates were paid $22,500 (Spring), $37,000 (Fall) and $21,000.
Overall, BigLaw salaries and bonuses are highly competitive and can be lucrative for associates who perform well. However, it is important to note that salaries and bonuses can vary widely depending on the firm, the market, and individual performance.
Factors Affecting BigLaw Salaries
BigLaw salaries are influenced by various factors that can vary from one law firm to another, although for the top AmLaw 100 firms in the US and in the UK they are increasingly conforming to the so-called ‘Cravath Scale’ where they tend to ape one another in associate pay terms.
Understanding these factors can help you negotiate a better salary or make an informed decision when considering a job offer.
Geographic Location
The geographic location of a law firm is one of the primary factors that affect BigLaw salaries. For example, law firms in New York City and other major cities tend to offer higher salaries than firms in smaller cities or rural areas. This is due to the higher cost of living in these areas and the increased demand for legal services.
But there are top paying biglaw firms based in London also. Top firm in the rankings of the biglaw UK law firms with the highest take-home pay, all of which were all US biglaw firms, was Sidley Austin, followed by Kirkland & Ellis, Debevoise & Plimpton, Latham & Watkins and Ropes & Gray.
But the pay rates for the big UK law firms in London rose rapidly last year as the competition for lawyers intensified and the US-based law firms lead the charge in terms of what they were paying associates.
Those London law firms paying big money to associates included Goodwin Procter, Davis Polk, Gibson Dun and Weil Gotshal, who are all now paying over £160,000, but it is Akin Gump leads the pack with the latest changes to the pay rate for newly qualified associates to $USD215,000.
A recent article in The Times looked at the ‘alpha male’ lawyers who regard themselves as the new bankers with their pay rates and bonuses.
According to BCGSearch.com, the most common salary range for first-year associates in bigLaw firms in major cities is between $160,000 and $190,000. However, salaries can go up to $220,000 or more in some firms.
Practice Area
The practice area in which you specialize can also affect the biglaw salary. Some practice areas, such as corporate law, intellectual property, and litigation, are more in demand than others and can command higher salaries.
According to JDJournal, first-year associates in corporate law can expect to earn an average salary of $190,000 in BigLaw firms. On the other hand, first-year associates in public interest law may earn significantly less.
Firm Size
The size of the law firm can also affect salaries paid. Generally, larger firms tend to pay higher salaries than smaller firms. This is because larger firms have more resources and can afford to pay higher salaries to attract top talent.
According to Biglaw Investor, the salary scale for first-year associates in BigLaw firms with 700 or more attorneys was $190,000 in 2022. On the other hand, first-year associates in firms with 50 or fewer attorneys earned an average salary of $105,000.
Experience Level
Experience level is another factor that can affect BigLaw salaries. Associates with more experience and seniority tend to earn higher salaries than their less experienced counterparts. In addition, associates who demonstrate exceptional performance and generate significant business for the firm may be eligible for bonuses and other incentives.
According to BCGSearch.com, second-year associates in BigLaw firms can expect to earn between $170,000 and $215,000, while third-year associates can earn between $185,000 and $265,000.
BigLaw Salary Comparison
Regional Comparison
BigLaw salaries canalsovary by region.
According to the BigLaw Investor, the 2022 base salary for a first-year associate in New York City is $205,000, while in Los Angeles, it’s $190,000. In Chicago, the base salary is $200,000, and in Houston, it’s $190,000. However, it’s important to note that bonuses can significantly increase an associate’s overall compensation.
Comparison to Other Legal Jobs
BigLaw salaries are among the highest in the legal industry. According to Above the Law, the base salary for a first-year associate at a top BigLaw firm is $215,000 in 2022, while the base salary for a first-year public defender is around $60,000.
A senior associate at a BigLaw firm can earn upwards of $400,000, while a senior attorney at a non-profit organization may earn around $100,000.
Comparison to Other Industries
BigLaw salaries are also among the highest in the overall job market. According to the BigLaw Investor, a first-year associate’s base salary in 2022 is higher than the median household income in the United States. However, it’s important to note that BigLaw salaries come with long hours, high stress, and intense competition.
For comparison, a software engineer with a few years of experience can earn around $100,Both professions require significant education and training, while a law degree is the main requirement for a BigLaw associate.
| Profession | Median Salary (2022) |
|---|---|
| First-Year BigLaw Associate | $215,000 |
| Software Engineer (Mid-Level) | $125,000 |
| Medical Doctor (Specialist) | $250,000 |
Negotiating BigLaw Salary
Salary negotiations can be a daunting task, especially with powerful law firms that have negotiation skills and experience that can provide an intimidating factor for those with reduced power and influence.
Here are some tips and advice on negotiating your BigLaw salary:
Tips for Negotiating
- Do your research: Before entering negotiations, research the industry standard for your position and experience level. This will give you a baseline for what to expect and can help you make a more informed decision.
- Highlight your value: Make sure to emphasize your experience, skills, and accomplishments during negotiations. Show your employer that you are worth the salary increase you are requesting.
- Be confident, but respectful: Negotiations can be nerve-wracking, but it is important to remain confident and professional. Avoid making demands and instead present your case in a respectful and constructive manner.
- Consider other benefits: Salary is not the only factor to consider in a compensation package. Consider negotiating for other benefits such as bonuses, flexible work schedules, or additional vacation time.
When to Negotiate
Timing is key when it comes to negotiating your BigLaw salary. Here are some scenarios where it may be appropriate to negotiate:
- When offered a new job: If you are offered a new position, it is expected that there will be some negotiation involved. Research the industry standard and come prepared to discuss your salary expectations.
- During performance reviews: Performance reviews are a great opportunity to discuss your salary and potential for growth within the company. Come prepared with a list of your accomplishments and be ready to discuss your goals for the future.
- After significant accomplishments: If you have recently completed a major project or achieved a significant milestone, it may be appropriate to request a salary increase. Make sure to highlight your accomplishments and explain how they have contributed to the success of the company.
Negotiating your BigLaw salary can be a win-win situation for both you and your law firm employer. By doing your research, highlighting your value, and approaching negotiations with confidence and respect, you can increase your chances of achieving the salary and benefits you deserve.
Author –
Ben Thomson has written extensively about law firm business and marketing, including for LawFuel where he last wrote the 30 most prestigious law firms list and may be contacted at webtrafficrules@gmail.com.
