Above the Law 2024 Survey
Solo & Small Firm Compensation
A compelling read and a useful resource for the industry, the Above the Law 2024 Solo & Small Firm Compensation Survey Report has been highly anticipated since its debut in 2016. In this post, we shine a spotlight on topics we think you’ll find interesting.
Lamentably, the gender disparity in small firm compensation continues. How does this compare to the law firms overall? Is firm size a factor, or is this an industry-wide phenomenon?
Certain practice areas tend to be more profitable for small firms. What are they and how can you or your firm get in on the action?
Location matters, as always; but how is that changing with the ubiquity of remote working and global connectedness? Does location still carry the same weight in compensation as it ever did?
And, perhaps of greatest interest to all, where do you and your firm fall in the current raise and bonus trends for small firms? Are you keeping up with your peers or falling behind — either personally or on a firm level, risking losing your best people to a better offer from your competition?
Right, then — let’s explore these themes.
The kids boys are alright
Compensation is rising for solo and small-firm attorneys overall, with 88% earning $100,000 — a 9 percent increase over 2023. What’s more, the proportion of attorneys earning $250,000 or more has seen steady growth over the past three years: a very positive sign.
With compensation levels in firms of 26–50 attorneys consistently higher, size remains a determining factor for attorneys who want to optimize their earning potential and financial stability. Even so, the percentage of respondents reporting earnings of $500,000 or more at firms with 11-25 attorneys doubled year over year, from 2023 (11%) to 2024 (24%). So, for those industrious, talented, or determined enough to cash in, the prospect is there.
Diversity and gender equity are still a significant issue in small firms, however, where the earnings picture is not as rosy for women as for men, and neither women nor BIPOC are well represented.
Male attorneys also reported earnings over $250,000 at double the rate of female attorneys.
Bloom where you’re planted
Inevitably, location pulls rank, and population numbers are pivotal. Attorneys working in cities with a population of one million or more are more likely to earn compensation at the top end of the scale than attorneys working in smaller markets. Accordingly, compensation is highest on the West Coast and in the Mid-Atlantic regions.
Those high salaries are concentrated in California and New York, where 16 percent of attorneys report earnings of $500,000+. Florida and Texas, with 10 percent earning over $500,000, are not far behind.
High and lower reported earnings diverge in the Mountain region, where 57 percent of partners earn $500,000+ and 43 percent of solo practitioners report less than $100,000. Many Midwest attorneys also earn less than $100,000.
However, lawyers who don’t benefit from the compensation advantages that location and population confer may take comfort in the knowledge that the high cost of urban living is likely a factor in those high salaries. And it may be worth the tradeoff.
Show us the money
Bonus targets are rising, with 22 percent of respondents reporting targets of 20 percent or more of base pay in 2024 compared to only 14 percent of respondents in 2023. This is particularly true of counsel versus associates, whose targets tended to be lower.
Are these targets being actualized?
Bonus amounts received in 2024 ranged from $0 to more than $100,000, but the highest number of respondents, at 28 percent, reported bonuses between $10,000 and $24,000. Respondents who reported receiving no bonus in recent years rose from 21 percent in 2023 to 26 percent in 2024, indicating that — while bonus targets are rising — disparities in bonus distribution may also be growing.
A similar number of associates and counsel (25%) said they hadn’t received a raise in the last few years, while nearly half (49%) received increases of 5% or more. It might be useful to understand whether the same respondents reporting no bonuses also reported no raises. We do know that associates were more likely to receive raises than counsel — and to report higher amounts. More than half (51%) reported raises of 5 percent or more versus counsel’s 37 percent.
Interestingly, firm size does not appear to be a strong predictor of compensation increase amounts. Raises above 5 percent varied by just a few percentage points across the board — except in firms of 6–10 attorneys, where raises were more likely to be 3 percent:
Origination fees play a larger role in partner compensation than in counsel pay but typically represent less than 25 percent of total earnings. Finally, collections are a major driver for solo practitioners and partners, with over 50 percent of partners reporting that collections account for at least half of their total compensation.
Practice makes perfect
For those keeping score, the top earners in solo and small law firms tend to be white males working in firms with 11–50 attorneys located in urban areas of New York, California, Texas, and Florida. Practicing US attorneys won’t be surprised to learn that the highest earnings are seen in Personal Injury, Commercial Litigation, and Corporate Law, while compensation for lawyers and firms specializing in Family Law and Trust & Estates falls at the low end, with many associates and solo practitioners earning less than $150,000.
Want more? Of course you do! Details below on how to access to the full report in all its spine-tingling detail.
Impress your colleagues and friends with your astute knowledge of solo & small firm compensation — or just become better informed about what you should be earning or what your firm should be paying. Visit the Above the Law website today and get your very own copy of this enlightening 40-page report.
About the report:
Above the Law has published a compensation report specifically for solo practitioners and small firm lawyers since 2016. This year’s survey was conducted during the summer and fall of 2024 and focused on firms with 50 or fewer lawyers. Responses from 750 lawyers were aggregated and segmented by demographic, including position, firm size, practice area, geographic region, year of law school graduation, and gender. Respondents identified as 86 percent white, 65 percent male, and 34 percent female, with 1 percent identifying as non-binary or prefer to self-describe.
About the author
Laura Wenzel