Partner Pay at Top US Law Firms Reaches Record $1.4 Million Average in 2024.

A survey by Major, Lindsey & Africa reveals that partner pay at leading US law firms has hit an all-time high, averaging $1.4 million. This represents a 26% increase over the past two years, outpacing the growth in basic pay for S&P 500 company executives. The surge in pay is attributed to early signs of revival in M&A activity and increased litigation, allowing law firms to significantly raise their rates.

The survey also highlighted persistent gender pay disparities, with male partners earning nearly 30% more than their female counterparts. However, this gap has narrowed from 47% four years ago. Regional differences were noted, with New York partners earning the highest average at $2.3 million, while Silicon Valley saw the largest percentage increase at 49% compared to 2022.

Hourly billing rates have also seen a substantial increase, with the average rate in the US reaching $1,114 in 2024, up 36% from 2022 and over 80% higher than a decade ago. This trend is mirrored in the UK, where top law firms are charging clients nearly 40% more per hour than five years ago.

Report by Financial Times