Big Law C-Suite Salaries Climbing, Outpacing Some Partners
July 30, 2025 – As the legal industry evolves, a striking trend has emerged in Big Law: C-suite executives at top U.S. law firms are commanding salaries that rival or even surpass those of junior partners, signaling a shift in how firms prioritize leadership talent. According to a recent report, some Am Law 200 firms are offering their C-suite leaders—such as chief operating officers, chief financial officers, and chief marketing officers—“phantom” shares and other innovative compensation structures to align their pay with that of partners, reflecting the growing importance of non-lawyer executives in driving firm success.
This development comes as Big Law firms, concentrated in major U.S. cities like New York, Los Angeles, and Chicago, face intense pressure to remain competitive in a dynamic market. The traditional lockstep compensation model, once a hallmark of elite firms like Cravath, Swaine & Moore, is giving way to more flexible systems designed to reward top performers. While equity partners at firms like Wachtell, Lipton, Rosen & Katz and Kirkland & Ellis can earn upwards of $15 million annually, some C-suite roles are now approaching or exceeding the compensation of junior partners, who may earn closer to $1.4 million on average.
The rise in C-suite pay is driven by the increasing complexity of law firm operations. Executives overseeing strategy, technology, and client relationships are becoming critical to maintaining profitability and navigating challenges like lateral partner recruitment and economic uncertainty. For instance, firms such as Paul Weiss and Simpson Thacher have adopted “black box” compensation models or “super” tiers to reward high-performing leaders, a trend that extends to non-lawyer executives. Some firms are also using phantom equity—simulated ownership stakes that mimic partner profit-sharing—to attract and retain top C-suite talent without granting full equity status.
However, this shift is not without controversy. As C-suite salaries climb, some partners question whether these executives’ contributions justify pay that matches or exceeds their own, especially in firms where partner profits are closely tied to billable hours and client origination. The average partner compensation at larger firms has risen 26% since 2022, reaching $1.4 million, fueled by a 36% increase in billing rates and a 26% rise in partner originations. Yet, the growing pay disparity between top-earning partners (some hitting $20–$30 million) and lower-tier partners highlights tensions that could be exacerbated by high C-suite compensation.
Industry experts predict this trend will continue as firms compete for top executive talent in a market where operational efficiency and strategic innovation are as critical as legal expertise. “Firms are recognizing that a strong C-suite can be a game-changer,” said Louis Ramos, a managing director at Major, Lindsey & Africa. With more than a third of Am Law 200 firms planning to overhaul their compensation models in the next two years, the gap between C-suite and partner pay may narrow further, reshaping the financial hierarchy of Big Law.
As firms like Latham & Watkins and Davis Polk experiment with new pay structures, the legal industry is entering what some call “a whole different world” of compensation. For now, the climb in C-suite salaries underscores a broader truth: in Big Law, leadership—whether in the courtroom or the boardroom—is commanding a premium.