Partner Compensation by Geography, 2024: New York, California & Regional Market Insights

Want to see which law schools offer the best lifetime earnings potential? Dive into our in-depth report: Partner Compensation by Geography: New York, California & Regional Market Analysis 2024-2025.

 
 
Geographic location continues to be one of the most powerful determinants of partner compensation in the legal industry. In 2024, the disparity in earnings between partners in major markets like New York and California compared to those in regional or mid-sized cities remained stark.

As law firm economics evolve and lateral moves increase, understanding these regional differences is critical for both law firm leadership and legal professionals plotting their long-term career paths.
 

New York: Home of the Highest Compensation

 
New York remains the undisputed leader when it comes to law firm partner compensation in the United States. Partners based in New York average around $2.3 million annually, far exceeding the national average of approximately $1.4 million. The city’s dominance is driven by several key factors:
 

• High billing rates tied to Wall Street work, mergers and acquisitions, private equity, and high-stakes litigation.
• A dense concentration of high-net-worth clients and Fortune 500 companies headquartered in Manhattan.
• An entrenched culture of performance-based compensation, where rainmaking and book-of-business size dictate pay more than seniority alone.

 
Top partners at elite firms in New York are now commanding compensation packages that can exceed $20 million annually, particularly in firms where originations and profitability are aggressively rewarded. These figures continue to attract talent to the city despite its high cost of living and intense work culture.
 

California: Fastest Compensation Growth

 
While not yet eclipsing New York, California is the fastest-growing market for law firm partner compensation. Cities like San Francisco, Palo Alto, and Los Angeles saw growth rates of nearly 49% between 2022 and 2024. This remarkable rise is fueled by several factors:
 

• Explosive demand in the tech and venture capital sectors, particularly in Silicon Valley.
• Private equity and emerging industries driving high-value transactional and regulatory work.
• A younger, entrepreneurial client base willing to pay premium fees for top-tier legal services.

 
Partners in leading California firms, especially those with corporate and tech-focused practices, are now earning between $1.4 million and $1.8 million, with some top-tier practitioners exceeding that. The growth trajectory signals a potential narrowing of the gap between California and New York over the next few years.
 

Regional and Secondary Markets: The Gap Widens

 
In contrast, regional markets across the Midwest, South, and Mountain West continue to report significantly lower partner compensation levels. In many cases, average partner pay in these areas lags 25% to 50% behind the national average. For example:
 

• Partners in secondary cities may earn between $500,000 and $900,000 depending on practice area, firm size, and local client base.
• Even in larger cities like Chicago or Dallas, where the legal markets are well-established, partner compensation typically falls below that of their coastal counterparts.
• Lower billing rates, smaller firm sizes, and lower average client spend contribute to these disparities.

 
However, regional markets often offer other advantages—lower cost of living, a more balanced lifestyle, and greater opportunities for equity or leadership roles within smaller firms.
 

National Averages & Context

 
Across all U.S. markets, partner compensation increased significantly between 2022 and 2024, with average earnings rising by approximately 26%. This growth is consistent across most firm types, although it is more pronounced in firms engaged in transactional, corporate, or technology-driven work. The average billing rate for partners nationwide also climbed to over $1,100 per hour, reflecting rising client demand and inflationary pressures on professional services.
 
These national trends show that while compensation is rising across the board, the gains are not evenly distributed—geography continues to be a key differentiator.
 

Geographic Compensation Snapshot

 

Location	Average Partner Compensation	Growth Rate (2022–2024)	Key Drivers
New York	$2.3 million	High	Wall Street, high billing rates, origination bonuses
California (SF/Silicon Valley)	$1.4–1.8 million	49% increase	Tech sector, private equity, transactional demand
Regional U.S. Markets	$500,000–$900,000	Slower growth	Smaller firms, lower billing rates, lower overhead

 

What This Means for Law Firms and Legal Professionals

 
Understanding how geography impacts partner compensation is critical for firms developing strategic hiring and compensation policies—and for attorneys considering lateral moves, equity opportunities, or market transitions. Here are several key takeaways:
 
1. Location Drives Compensation
New York and California remain the premier markets for high partner compensation. Attorneys aiming for top earnings should consider positioning themselves in these markets or cultivating portable practices that cater to high-paying client bases.
 
2. Billing Rates Reflect Market Realities
Firms in top-paying cities consistently bill higher hourly rates and handle more complex work. These factors significantly boost revenue and partner pay, making it essential for regional firms to find niche practice areas or boutique specialties to remain competitive.
 
3. Regional Firms Must Compensate Creatively
To attract and retain top legal talent, firms outside of major markets may need to offer enhanced benefits, faster equity tracks, greater autonomy, or alternative compensation structures that appeal to lifestyle and career goals.
 
4. Lateral Movement Is Influencing Pay
High lateral movement, especially into California and New York, is pushing firms to increase compensation offers. This is creating a more dynamic and competitive market for senior-level attorneys across all practice areas.
 
5. Long-Term Strategic Planning Matters
For law firm leaders and legal professionals alike, geographic market awareness is essential. Whether expanding into a new region, opening a satellite office, or negotiating a partnership agreement, having a solid understanding of local compensation benchmarks can make or break a long-term career move.

 

Want to see which law schools offer the best lifetime earnings potential? Dive into our in-depth report: Partner Compensation by Geography: New York, California & Regional Market Analysis 2024-2025.