Explore the Big Law salary scale, starting salaries for 2024, compensation trends by firm, and what to expect in bonuses.
Preparing for law school graduation, Big Law salary was the topic gracing every other conversation holy grail of all compensation discussions, honestly, it was an absolute obsession with many of us. We sat in the library, perusing through forums, talking to recent graduates, and sifting through many articles trying to find that elusive question: How much do Big Law firms pay?
Sure, we knew that Big Law salaries were high-eye-wateringly high, in fact, specifics? That was another story altogether. And as you’ll see in this article, that question is decidedly less than straightforward. Whether you are a law student interested in what your future paycheck might look like, a lawyer who’s considering making the jump to Big Law, or you’re just curious about how all these numbers stack up, buckle up! We go in-depth with the Big Law salary scale, trends, and expectations in 2024 and beyond.
Table of Contents
What is Big Law and Why Do Salaries Matter So Much?
So, before we pull in any numbers whatsoever, let’s define what Big Law is. “Big Law” generally represents the largest, most renowned law firms on the face of the Earth-think; Cravath, Skadden, and Kirkland & Ellis. These are firms that deal with massive, high-stakes litigation, mergers, and corporate matters and give out some of the most lucrative salaries in the legal industry.
But then, of course, there is this: Big Law salaries also reflect the extreme burden and pressures. The firms expect more than 60 to 80 hours a week, at times a lot more. Undeniably, while the salary is very high, so too is the time and energy trade-off, often against work-life balance. But for many, the financial remuneration makes it worth it—at least for a few years.
The Big Law Salary Scale: A Breakdown
When one refers to the Big Law salary scale, what is ostensibly being referred to is some sort of standardized system the lion’s share of the largest firms adhere. Not only that, it’s taken as true when it comes to associate compensation.
In 2024, the starting salary for Big Law first-year associates is still expected to stand at an impressive $ 215,000 figure many firms adopted as far back as 2022. But this number itself doesn’t tell the whole story. There are bonuses, raises, and other forms of compensation that come into play, making the whole package even more attractive.
But let’s break down year-by-year because as you advance on the career ladder, the numbers get more interesting.
| Year | Salary | Bonus (Est.) | Total Compensation |
|---|---|---|---|
| 1st Year Associate | $215,000 | $15,000 – $25,000 | $230,000 – $240,000 |
| 2nd Year Associate | $225,000 | $20,000 – $30,000 | $245,000 – $255,000 |
| 3rd Year Associate | $250,000 | $25,000 – $40,000 | $275,000 – $290,000 |
| 4th Year Associate | $295,000 | $30,000 – $50,000 | $325,000 – $345,000 |
| 5th Year Associate | $345,000 | $40,000 – $65,000 | $385,000 – $410,000 |
| 6th Year Associate | $370,000 | $50,000 – $80,000 | $420,000 – $450,000 |
As you will notice, this compensation scale increases rather impressively. By the time you are a sixth-year associate, you could make a total of $450,000 in compensation, which, of course, is still relatively on the low side compared to the earnings level of partners.
Big Law Salary by Firm: Do All Firms Pay the Same?
Now, if you’re considering Big Law, you’re probably wondering whether this salary scheme holds for all firms. The response is: generally speaking, it does. The overwhelming majority of large firms in major legal markets – among them New York, Washington, D.C., and Los Angeles – follow this salary scale, or something very similar to it.
Except for a few variations because of the market, it is all basically the same. Firms in smaller cities may have slightly lower salaries, such as Houston or Atlanta, but many times they make up for this with a lower cost of living. So while you may make $10,000 to $20,000 less salary, your take-home pay would stretch further compared to living in a high-cost-of-living city like New York.
Big Law vs All Other Jobs in the Law: Is the Grass Greener?
One of the largest questions I had when I was considering Big Law dealt with whether the salary was worth the tradeoffs. After all, while Big Law salaries are undoubtedly high, they come with expectations of long hours and intense pressure.
How does Big Law then compare to other legal positions?
Big Law Migrants: In-house Counsel: Many lawyers leave Big Law for cushy in-house positions within corporations. While the salaries are often a little lower- usually in the range of $150,000 to $250,000 depending on the company and your experience work-life is better. Many in-house counsel positions include less billable hour pressure and more predictable schedules.
Big Law Starting Salary 2024: Will It Increase?
For 2024, the Big Law starting salary remains at $215,000 for first-year associates. That number was set as part of a salary increase that went through back in 2022, and it ultimately held tight through then. There is, of course, always some conjecture that firms could raise the salaries even higher in the future if there is enough competition to try and secure top talent.
Other analysts think the next bump could bring starting salaries to about $225,000 by 2025, and perhaps even as high as $230,000-but at least for now, there’s no official word. In any event, the trend over the past decade has been one of steady increases, and many expect that to continue in the coming years.
What Are Bonuses Like for Big Law?
We have touched on base salary, but perhaps the most exciting part of Big Law salaries is the bonus structure. They usually are divided into two camps: the year-end bonus and the special bonus.
Year-End Bonus:
This depends on seniority and performance. You can probably get an idea from the table above, but first-year associates are looking at bonuses of $15,000-$25,000, with those figures going upwards as you progress in your seniority. By your sixth year as an associate, your bonus can be as high as $80,000.
Special Bonuses:
Sometimes, firms pay special bonuses, which are in substance additional salaries paid in particularly profitable years. For example: Many firms in 2021 awarded special COVID-related bonuses as a present to associates for putting up with the pandemic.
The Partner Payoff: Where Things Get Wild
While the salaries for associates are impressive in Big Law, the real financial payoff occurs if and when you make a partner. At the largest firms, equity partners who own a share of the firm can earn upwards of $2 million a year or even more, depending on the firm.
At best, it’s not easy: It normally requires 8 to 10 years of hard work, long hours, and high performance each year. And even then, there’s no guarantee that you will make a partner. Lots of associates leave Big Law before becoming partners for other smaller firms, in-house positions, or government jobs.
Is Big Law Worth It?
This is the million-dollar question, and it depends on what you are looking for out of your career. For some, the dollar figures of Big Law salaries make the terrible hours and extreme pressures all worth it. After all, earning a starting associate salary in Big Law of $215,000 at 25 or 26 years old is nothing to sniff up your nose at. Add in the bonuses, and you’re sitting pretty.
For others, the trade-offs-mainly in work-life balance in the long run aren’t worth it. Many lawyers find that after a few years in Big Law, they’re ready for something different-whether that’s an in-house role, a smaller firm, or something entirely outside of the legal profession per se.
FAQs
1. What is the starting salary for a first-year associate in Big Law in 2024?
For most Big Law firms starting in 2024, the base salary for a first-year associate is $215,000. Since 2022, this salary has been standardized; most of the biggest law firms increased the base pay for associates upon entry. In addition to the basic compensation, first-year associates often receive bonuses that range from $15,000 to $25,000, depending on the performance of the firm apart from other factors.
2. How does Big Law salary scale work for associates?
The Big Law salary scale is a structured pay progression system that most large law firms follow. It starts with a base salary of $215,000 for first-year associates and increases annually based on seniority. For example, second-year associates typically earn $225,000, and third-year associates can expect around $250,000. As associates gain more experience, their base salary can rise to $370,000 or more by the sixth year. Bonuses are also a big component of the total compensation and increase with seniority.
3. Do all Big Law firms pay the same salary?
While nearly all Big Law firms follow the industry-wide standard salary scale, there is a degree of variation in the compensation some of these firms pay. The biggest firms in major markets all compensate similarly. Though some firms in smaller markets may have slightly reduced base salaries, most of these cities have markedly lower costs of living. Other firms may offer additional perks or bonuses to top talent.
4. How much money do big law partners generally make?
Equity partners in the very best Big Law firms can command very high incomes, often above $2 million or more a year. Compensation for partners can be highly variable, depending on the profitability of the firm, city or location, and other factors, including their own client base. Non-equity partners do not have a claim on the profits of the firm and usually make less, but still obtain six-figure salaries ranging from $300,000 to $1 million. The path to partnership is highly competitive and almost always requires 8-10 years of associate or counsel work.
Conclusion: How to Navigate Your Big Law Journey
It’s a very different ride, I should say, having been on the Big Law path. The salary, of course, is really a big draw; for most people, it’s life-changing. But like everything else in life, there’s a catch. My advice, if one were considering joining Big Law, would be to go into it with an open eyes- understand the commitment, expectations, and lifestyle.
And if you decide it’s right for you, congratulations! You’re in store for an exciting, challenging, and incredibly rewarding career. Just remember to keep your long-term vision in focus, and never be afraid of making that change if and when the time feels right.
