BCG Attorney Search has released its latest “Partner Compensation by Geography: New York, California & Regional Market Analysis” report, shedding light on how location remains one of the most decisive factors in partner pay across U.S. law firms.
For legal professionals weighing relocations, lateral moves, or firm expansion, the insights in this report are essential reading.
Learn more from this report: Partner Compensation by Geography: New York, California & Regional Market Analysis 2025-2026
🌆 New York: The Top Tier Market
The report shows that New York leads all U.S. markets in average partner compensation, with figures around $2.3 million annually. This places it at about 45 % above the national average for partners.
New York’s dominance is backed by the concentration of financial institutions, capital markets, corporate headquarters, and high-stakes litigation. Partners in premium practices—like M&A, securities, and complex litigation—often command $3 million+ in leading roles.
🌉 California: Three Premium Hubs with Distinct Profiles
California’s legal market is divided into three high-compensation centers: Silicon Valley, San Francisco, and Los Angeles.
- Silicon Valley leads within the state, with average compensation near $2.1 million, driven by tech transactions, venture capital, and IP work.
- San Francisco sees averages around $1.9 million, combining financial services and tech in its matter mix.
- Los Angeles averages about $1.7 million, with entertainment law, real estate, and corporate practices contributing significantly.
In these California markets, compensation is heavily influenced by technology, IP, and startup-related deals, which push partner pay into premium tiers.
🌎 Regional & Growth Markets: The Landscape Beyond the Coasts
While New York and California set the benchmarks, regional and emerging markets display interesting dynamics:
- Texas markets (Houston, Dallas, Austin) offer averages between $1.3M to $1.6M, reflecting strength in energy, corporate, and tech practices.
- Chicago averages near $1.5M, benefiting from its central business hub.
- Washington, D.C. holds a premium for regulatory, governmental, and policy work, with average partner compensation around $1.8M.
- Secondary markets like Denver, Atlanta, Phoenix, and Boston trail further behind but offer more favorable cost-of-living tradeoffs.
⚖ Cost-of-Living & Real Value: What Partners Actually Keep
Though nominal compensation varies widely by geography, when adjusted for cost of living, the differences shrink. For example, a partner in Houston may enjoy higher real purchasing power than one in New York, despite lower nominal pay, due to lower housing and general living costs.
Cost-of-living indexes, especially for housing, skew the effective value of compensation across markets. This makes some regional or secondary markets more attractive than they appear on paper.
📊 Why Geography Still Matters
The BCG report emphasizes that geographic location remains perhaps the single strongest determinant of partner compensation.
Factors reinforcing this include:
- Client demand concentration: Larger clients, cross-border deals, and institutional mandates cluster in major metro areas.
- Firm density and competition: Markets with many top firms push compensation upward through rivalry for top talent.
- Practice area specialization: Tech and financial centers amplify certain practices (IP, securities, M&A) which pay more.
- Cost and tax considerations: State tax policies, real estate, and operational costs further influence net compensation.
🔍 Strategic Takeaways for Firms & Partners
- For firms: Expansion decisions must weigh not just revenue potential but required compensation premiums and overhead in target geographies.
- For partners: Location choices should balance headline pay with real purchasing power, lifestyle, and long-term career opportunities.
- For laterals: Moving from a regional market to a premium market may boost nominal pay, but net gain depends heavily on cost adjustments.
The legal market continues to evolve: remote work, firm network extension, and practice diversification may moderate geographic premiums over time. Still, as of 2025–2026, geography remains a decisive factor in partner compensation.
Learn more from this report: Partner Compensation by Geography: New York, California & Regional Market Analysis 2025-2026
