According to a major survey, partners at large US law firms earn more than ever. The average compensation is $1.4mn.
Major, Lindsey & Africa, a recruitment specialist, surveyed 200 of the top lawyers in the country and found that the partner pay has risen 26 percent over the last two years, surpassing the basic pay growth for the heads of S&P500 companies.
The increase in pay coincides with the early indications of a revival of mergers and acquistions activity, including several megadeals, and an increased litigation rate, which gave law firms in the US and UK the chance to dramatically raise their rates.
Karen Andersen is a partner of MLA, and co-author of this survey. The survey received responses from over 1,700 people. We expect that these trends will continue into 2025. This is especially true with the Federal Reserve lowering interest rates.
The MLA survey also found that male partners still earn almost 30% more than female lawyers on average.
While the gap is still significant, it has shrunk significantly since MLA’s study four years ago. The remaining discrepancy, according to the study, is due in part to the fact that women “significantly outpace men in originations”, which means they bring in more business for their respective firms.
According to the survey, partners in New York earned an average of $2.3mn per year. Partner firms that serve the Private Equity sector such as Kirkland & Ellis or Paul Weiss have reported earning up to $20mn.
MLA found that the partners in Silicon Valley had seen the highest percentage increase in their pay. They were up 49 percent compared to 2022.
These findings follow a PwC survey that revealed the top UK law firms charged clients nearly 40 per cent per hour more than five years ago.
The average hourly rate for big UK firms was £449 in 2024 compared to £321 in 2019. This represents a double-digit increase in the average rates of all 100 firms.
The average US hourly billing rate, according to MLA’s study, was $1114 in this year. This is up 36% from 2022 and over 80% higher than it was a decade earlier.
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