A new report by BCG Attorney Search reveals that geography remains the single biggest factor influencing partner compensation across U.S. law firms. The 2025–2026 analysis highlights how major legal markets like New York and California continue to command top-tier pay, while regional cities are steadily closing the gap with more competitive structures and expanding practice specialties.
Learn more from this report: Partner Compensation by Geography: New York, California & Regional Market Analysis 2025-2026
New York: Still the Nation’s Compensation Leader
New York partners remain the highest paid in the country, with average annual compensation reaching $2.3 million, roughly 45% above the national mean. The city’s dominance is tied to its position as the global center for corporate finance, securities law, mergers and acquisitions, and complex litigation. Top Am Law firms headquartered in New York collectively report over $8 billion in revenue among their leading ten firms, with elite partners in corporate and M&A practices often exceeding $3 million annually.
California: Three Markets, Three Distinct Strengths
California continues to rival New York in select sectors, especially in technology and intellectual property.
- Silicon Valley partners average around $2.1 million, driven by tech transactions and venture capital deals.
- San Francisco maintains an average of $1.9 million, supported by financial services and tech litigation.
- Los Angeles, fueled by the entertainment and media industries, averages $1.7 million.
California’s high cost of living tempers its real-dollar advantage, but the market remains a magnet for talent in fast-growth industries.
Regional and Secondary Markets Gain Momentum
Across the U.S., compensation trends reveal steady increases outside the traditional power centers.
- Texas continues to grow as a powerhouse, with Houston partners earning $1.6 million, boosted by energy law demand, while Dallas and Austin partners average $1.4 million and $1.3 million, respectively.
- Chicago maintains a strong presence with partners averaging $1.5 million, while Boston ($1.4M) and Washington, D.C. ($1.8M) lead in healthcare, IP, and regulatory practices.
- Emerging markets such as Atlanta ($1.0M), Denver ($1.1M), and Phoenix ($950K) are gaining traction, offering growing opportunities for lateral hires and firm expansion.
Cost-of-Living Adjustments Shift the Landscape
When adjusted for cost of living, some regional markets outperform on real purchasing power. Houston and Dallas rise to the top of the adjusted rankings, while New York, though still dominant in nominal terms, falls slightly due to higher living expenses.
Key Insight for 2026
For firms and partners alike, the message is clear: location strategy is compensation strategy. As firms expand beyond traditional hubs, those that adapt to regional strengths, industry trends, and lifestyle considerations will maintain a competitive edge.
Learn more from this report: Partner Compensation by Geography: New York, California & Regional Market Analysis 2025-2026
