BigLaw Firms: Lockstep Associate Pay Changes With Varied Compensation

• Many BigLaw firms are moving away from traditional lockstep associate pay, offering varied salaries based on performance and location.
• In 2025, at least 54 Am Law 200 firms, including 17 Am Law 100 firms, reported salary ranges for first-year associates.
• Average first-year associate salaries in 2025 ranged from $193,004 to $207,213 in the Am Law 200, and higher in the Am Law 100.
• Firms are also utilizing customized bonuses, sign-on incentives, and forgivable loans to attract and retain junior talent.
• Despite these changes, most Am Law 50 firms are expected to maintain their lockstep compensation structures.

This indicates a bifurcated approach within BigLaw, where some firms innovate while others maintain established practices, particularly at the highest echelons.

BigLaw firms are increasingly moving away from the long-standing lockstep associate pay model, opting instead for more flexible compensation structures that factor in performance and geographic location. This shift is designed to attract and retain top junior legal talent in a competitive market. Beyond base salaries, firms are also deploying a range of financial incentives, including customized bonuses, sign-on incentives, and forgivable loans.

According to a Law.com report, at least 54 Am Law 200 law firms, including 17 within the prestigious Am Law 100, reported offering a range of salaries for their first-year associates in 2025. This data highlights a clear departure from uniform pay scales. For instance, the average minimum pay for a first-year associate in the Am Law 200 last year stood at $193,004, with the average maximum reaching $207,213. Firms within the Am Law 100 showed even higher figures, with an average minimum of $210,535 and an average maximum of $220,840 for new associates. These reported figures predate Milbank's subsequent announcement of associate salary increases.

Individual firms are actively implementing these varied compensation strategies. Taft Stettinius & Hollister, for example, offered first-year associates salaries ranging from $175,000 to $215,000 last year. A representative from the firm indicated that this approach is the result of extensive competitive analysis, aimed at securing top talent across its diverse market locations.

In addition to differentiated base salaries, the legal industry has seen a notable resurgence of signing bonuses for associates, particularly over the past six months. Legal recruiters attribute this trend to prevailing market dynamics. Stephanie Biderman, a partner in the associate practice at Major, Lindsey & Africa, explained that these bonuses are a direct response to supply and demand, suggesting they will continue as long as demand remains high but will likely diminish if the market cools and associates have fewer options. Firms are also leveraging performance-based bonuses and forgivable loans as tools to enhance associate retention.

Despite these significant shifts and the adoption of more flexible compensation models by many firms, the traditional lockstep system is not universally being abandoned. Discussions with associate recruiters suggest that the majority of Am Law 50 firms are likely to maintain their established lockstep associate pay structures. This indicates a bifurcated approach within BigLaw, where some firms innovate while others maintain established practices, particularly at the highest echelons.

Kate Reder Sheikh, a partner at legal consulting company Major, Lindsey & Africa, underscored the deep-rooted nature of the lockstep model. She described it as a "very well-worn model" and expressed skepticism that top-tier firms, such as an Am Law 20 firm, would suddenly begin paying associates in different geographic locations, like Colorado versus San Francisco, disparate salaries. This perspective highlights that while some firms are adapting their compensation strategies, the core principle of lockstep pay remains a strong fixture for a significant segment of the BigLaw landscape.

Source: Reporting based on Law.com's analysis of compensation data.