Credit: Orlando Florin Rosu/Adobe Stock Largest Law Firms Increase Partner Pay Spread, as Comp Models Hit 'Inflection Point'
The Am Law 100 upped its average equity partner pay spread from 9.8-to-1 in 2022 to 10.3-to-1 in 2023, according to a sample of firms' data.
May 28, 2024 at 05:00 AM
7 minute read
Law Firm Profitability
The original version of this story was published on The American Lawyer
What You Need to Know
- Am Law 100 firms' average pay ratio increased from 9.8-to-1 in 2022 to 10.3-to-1 in 2023.
- At the same time, the average spread among Second Hundred firms fell a bit, as that segment arguably focused on building leverage.
- Lisa Smith, firm consultant at Fairfax Associates, called the era an 'inflection point' on partner pay across the industry.
Amid unprecedented billing rate hikes and an escalation of the battle for rainmaking talent, Am Law 100 law firms again raised the stakes on partner pay last year, increasing the average distance between their highest- and lowest-paid equity partners, according to ALM survey data on pay ratios.
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