JDJournal highlights new insights from BCG Attorney Search’s BigLaw Partner Compensation Report, a detailed analysis revealing how partner pay, partnership structures, and long-term returns vary across major U.S. law firms and practice areas.
Learn more from this report: BigLaw Partner Compensation Report Equity vs. Non-Equity Earnings & ROI by Practice Area
The study underscores a growing pay divide between equity and non-equity partners, showing that equity partners in AmLaw 50 firms earn over four times more than non-equity partners. Once the dominant model, equity partnerships have steadily declined—from 72% of partners in 2010 to just 43% by 2024—as firms increasingly adopt two-tier partnership structures.
Equity vs. Non-Equity Earnings
Equity partners continue to enjoy far greater compensation potential, driven by profit shares, capital appreciation, and firm growth. However, the path to equity is longer and riskier. Non-equity roles, while more stable, come with capped income and limited ownership opportunities.
Time to Partnership by Practice Area
Partnership timelines differ widely depending on the legal specialty. Commercial Litigation requires one of the longest tracks, averaging 10 years to reach equity, while Regulatory/Compliance offers faster advancement at about 7.6 years. The average gap between reaching non-equity and equity status is roughly two years, signaling relatively consistent progression once candidates make partner.
Regional and Practice-Based Pay Disparities
Compensation remains highest in major markets like New York, where Private Equity and M&A partners top the charts with multimillion-dollar annual earnings. Yet when adjusting for cost of living, lawyers in secondary markets such as Texas, Florida, and the Midwest see competitive effective income levels, especially in practice areas like Intellectual Property and Healthcare Law.
Return on Investment (ROI) for Equity Partners
The report estimates that a $500,000 equity buy-in at an AmLaw 100 firm could generate a 3000% return over 20 years, producing roughly $24 million through draws, profit distributions, and terminal value. Around 37% of that gain stems from equity appreciation, reinforcing the financial rewards of ownership in thriving firms.
Risk-Adjusted Practice Performance
While Private Equity and M&A boast the highest average pay, their volatility and lower odds of achieving partnership reduce overall stability. Conversely, fields such as Tax, Regulatory/Compliance, and Intellectual Property demonstrate stronger risk-adjusted returns, balancing income potential with career security.
Shifting Partnership Landscape
The report concludes that the BigLaw model is evolving toward more selective equity partnerships and expanded non-equity tiers. This structure gives firms flexibility in managing profits while limiting ownership dilution, but it also heightens inequality between partner levels.
For attorneys charting their career paths, these insights provide valuable guidance: specialization, smart market selection, and strategic long-term planning are key to maximizing both compensation and professional ROI.
Learn more from this report: BigLaw Partner Compensation Report Equity vs. Non-Equity Earnings & ROI by Practice Area
