Law Firm Partner Compensation in 2025: Trends by Firm Size, Region, and Practice Area

Want to understand the latest trends in partner compensation across the legal industry? Dive into our in-depth report: Law Firm Partner Compensation 2024-2025: Complete Industry Analysis.

   

Law firms closed out 2024 on a strong note, continuing to thrive into 2025. This strength has driven partner compensation to historic highs, with new surveys highlighting significant changes based on equity status, practice area, and geographic market.

 

Partner Compensation: A Snapshot

• The average partner compensation rose significantly, reaching approximately $1.4 million in 2025—a 26% increase since 2022.
• Equity partners earned substantially more, averaging $1.9 million, compared to just $558,000 for non-equity partners.

 

How Firm Size Affects Partner Pay

• The top-performing firms in the Am Law 100 reported revenue increases averaging around 13.3%, with profits per equity partner (PPEP) averaging about $3 million in 2024.
• The highest reported PPEP among leading U.S. firms include:
  • Kirkland & Ellis at $9.25 million
  • Wachtell, Lipton, Rosen & Katz; Quinn Emanuel; Davis Polk; and Simpson Thacher, each ranging between $7 million to $9 million.

 

Practice Area Compensation Trends

• Corporate partners remain at the top, averaging around $1.488 million.
• Other leading practice areas include:
  • Tax & ERISA partners: averaging $1.145 million
  • Litigation partners: around $1.054 million
  • Labor & Employment partners: averaging approximately $653,000
• Specialized practice areas like intellectual property (IP), healthcare, life sciences, tax, and energy consistently pay partners higher, often ranging from $700,000 to more than $3 million, depending on firm and market.

 

Regional & Global Pay Dynamics

• Partner compensation remains heavily influenced by region, with top U.S. firms aggressively expanding into European markets.
• The London market witnessed more than 155 high-level lateral partner moves in early 2025 alone—a 49% increase year-over-year—fueled by aggressive pay packages often reaching tens of millions.
• Notably, top UK firms have raised their benchmarks considerably, with firms like Macfarlanes now paying full-equity partners around £3.1 million annually, surpassing some "magic circle" firms.

 

Evolving Compensation Models and Firm Culture

• Many leading firms are moving away from traditional lockstep compensation models toward more flexible, merit-based systems. This approach emphasizes rewards for business origination, revenue generation, and performance metrics.
• At highly profitable firms like Latham & Watkins, exceptional partners have seen annual compensation rise above $20 million, underscoring internal competition and complexity around crediting originations.
• However, some firm leaders warn that an overemphasis on compensation may damage firm culture, stressing the importance of trust, collegiality, and career fulfillment alongside monetary rewards.

For a complementary perspective on how firm benefits and bonuses influence total compensation, visit Navigating the Compensation Maze: Discovering Competitive Salaries and Benefits in the Legal Industry.
 

Quick Compensation Reference

 

Metric	Value
Average partner compensation (2025)	≈ $1.4 million
Equity vs. non-equity partners	≈ $1.9M vs. $558K
Am Law 100 average PPEP	≈ $3 million
Highest U.S. firm PPEP	$9.25 million (Kirkland & Ellis)
Highest-paying practice areas	Corporate, Tax, Litigation, IP, Energy, Healthcare
UK high-end compensation benchmark	£3.1M (Macfarlanes)
London lateral market trend	Record moves; pay packages often tens of millions

 

Strategic Takeaways for Firms and Partners

 

• Benchmark by Firm Size and Practice Area:
  Compensation varies widely; firms must stay competitive to attract and retain top talent.

 

• Consider Equity Tier Structures:
  With notable gaps between equity and non-equity partner pay, firms should carefully structure tiers to balance cost and morale.

 

• Performance-Based Compensation Wins:
  Flexible compensation structures that reward performance tend to foster greater financial and strategic growth.

 

• Prepare for International Competition:
  Increased global expansion by leading U.S. firms raises compensation expectations internationally.

 
 

• Balance Culture and Compensation:
  High pay attracts talent, but firms should ensure cultural integrity by balancing compensation with strong internal values and a fulfilling work environment.

 
 

Want to understand the latest trends in partner compensation across the legal industry? Dive into our in-depth report: Law Firm Partner Compensation 2024-2025: Complete Industry Analysis.