Becoming a partner at a law firm is often regarded as a significant career milestone for individuals in the legal field. It’s not just for the title but also for the financial rewards that come with it. But how much do law firm partners make for the title to be so competitive?
Truth be told, the amount varies and isn’t a definite amount. Compensation or salary given to law firm partners varies based on the size of the firm, practice area, location, and the amount of equity the partner holds in the firm.
Although it is different, this blog aims to break down the key numbers. We’ll explore the gap between equity and non-equity roles. You’ll also find practical insights for lawyers looking to move forward in their careers or reassess their value within the firm.
Whether you’re already on the partner track or just curious about what the next step looks like, keep reading. We’ll walk you through what you need to know and what to expect.
Understanding Law Firm Partner Compensation
In 2024, the average salary for a law firm partner would reach as high as $1.4 million, according to Major, Lindsey & Africa’s Partner Compensation Survey. But that being said, a law firm partner’s salary isn’t a fixed rate. It varies a lot from really low numbers to extremely high ones.
For many attorneys, moving into partnership is seen as a major financial milestone, but how much you earn depends on where you sit in the hierarchy.
Average Partner Compensation in 2024
According to the Major, Lindsey & Africa’s Partner Compensation Survey report:
- Equity partner salary averages $1.9 million
- Non-equity partner salary sits around $558,000
That’s not just a slight difference; it’s a pay gap that reflects how law firms reward ownership and revenue generation.
What’s Driving the Increase?
The jump in law firm partner pay isn’t random; it’s tied to a few big shifts in the legal industry:
- Billing rates have increased, rising 36% since 2022 and 83% in the past 10 years, now averaging $1,114/hour.
- Client originations are a major metric in partner evaluations that have surged. Equity partners now bring in an average of $5 million, while non-equity partners generate around $971,000 in client business.
These changes reflect how much law firm revenue is now tied directly to partner performance. And with more firms adopting performance-based models, the pressure and the potential payoff have never been higher.
Equity vs. Non-Equity Partners: Salary Differences
Being an equity partner is a major contribution to how much that partner is going to get paid. It shows the earning potential and the heights a partner can reach in terms of his/her earnings.
Equity partners aren’t just employees, they’re owners. Their compensation is directly tied to the firm’s profits and their ability to bring in clients. The upside? Their salaries can reach the top end of the scale. The trade-off? More pressure to perform, more responsibility, and higher expectations when it comes to business development.
On the other hand, a non-equity partner earns based on his/her performance. These partners have the title in the firm but no stake or percentage in the profits. Due to their position within the firm, they play a role that often involves them not making any important decisions in relation to the firm. Although they don’t actually have a stake in the firm, their pay is still pretty impressive, but nothing in comparison to the partners with equity.
When you’re being measured on things like billable hours and client originations, having the right tools in place, like CaseFox, can make all the difference in tracking performance, building value, and getting paid what you’re worth.
How Compensation Models Impact Partner Pay
Becoming a law firm’s partner isn’t just about changing your title; it also changes how much you make, but that depends on a firm’s structure, its compensation model, whether you’re an equity or non-equity partner, and it all comes with the respect you gain, but all that comes with responsibility.
Profit-Sharing Models: Common for Equity Partners
If you’re an equity partner, chances are your pay is tied to how well the firm performs and how much you contribute to that success. These profit-sharing models can work in a few different ways:
Lockstep Model
Seniority rules here. Your earning potential depends on the time you have been in a firm. It rewards loyalty and collaboration, but it doesn’t always favor high performers who bring in major business early on.
Merit-Based or Performance-Based Model
This one’s all about results. Your partner’s salary is linked to things like billable hours, new client revenue, or firm leadership. It’s great for top performers, but the pressure to keep delivering is real.
Hybrid Models
A blend of seniority and performance. It gives firms a way to recognize both loyalty and results, and is becoming increasingly common in large and mid-sized practices.
What This Means for Partners
Equity partners have more to gain but also more at stake. Since their income often depends on profits and client origination, there’s both risk and reward.
Usually, non-equity partners do earn a steady salary that is steady including the bonuses they receive. That said, more firms are now tying bonus structures to performance metrics, so even non-equity roles are shifting toward output-based rewards.
Becoming an Equity Partner: What It Takes
To become an equity partner means consistently bringing in business, building strong client relationships, mentoring junior attorneys, and showing leadership beyond your casework. Firms want to see that you’re not just doing great legal work, but also contributing to the growth and reputation of the practice. It takes time, strategy, and visibility, but if you align your efforts with what the firm values, equity is absolutely within reach.
How to Maximize Your Partner’s Salary
Making a partner is a huge milestone, but let’s be honest, that’s not the finish line. Once you’ve got the title, the real question becomes: How do you make it work for you financially?
The truth is, not all partners are compensated equally, and not always because they’ve been there longer than you have. It’s about how you show up, how you advocate for yourself, and how you build your power inside (and outside) the firm.
How to prepare for partner compensation discussions
Before you walk into any compensation conversation, you need to do your due diligence. Look around. What are firms like yours paying partners with similar roles, experience, and client base?
What makes a partner valuable in a law firm
Here’s the thing: your value isn’t just in the hours you bill. It’s the clients who stay with the firm just because you represent them. The ones who refer others. The clients and revenue you bring with you that didn’t exist before you stepped in.
How to stand out as a law firm partner
Of course, it matters that you are bringing in clients, but there is more than origination when it comes to growth. Are you mentoring associates? Leading practice groups? Helping others close deals or collaborating on workflows? These are all things that may not get recorded in a spreadsheet, but they are appreciated, especially by firms that are thinking about the long game.
Conclusion
Becoming a law firm partner is not just reaching a milestone in your career for growth. It’s also about increasing and progressing your earning potential. For some good equity partners, a good earning potential can increase up to millions. In the end, the earning potential ultimately depends on things like the size of your firm and the way your compensation within the firm is structured, and how much business or retainers you are actually bringing into the firm.
The good news to this is that by building strong client relationships and showing leadership skills, standing out from the rest of the crowd, and contributing to the firm’s growth and success, you will capture the attention of the higher-ups and put yourself on the track for increasing financial rewards with long-term success.