The financial landscape for junior corporate lawyers in New York City has dramatically shifted, with starting salaries reaching unprecedented heights. Leading corporate law firms are now offering recent law school graduates a starting salary exceeding $200,000, marking a significant increase in compensation for entry-level talent.
Davis Polk & Wardwell LLP, a prominent New York-based corporate law firm boasting 975 attorneys, recently announced a substantial pay raise for its 2021 law school graduates, setting their starting salary at $202,500. This information was initially reported by the Wall Street Journal, highlighting the firm’s move to attract top legal talent. Prior to this announcement, Milbank LLP, another major New York law firm with 765 attorneys, had already increased its first-year associate pay to $200,000 the previous week, signaling a competitive salary war among elite firms.
Several other prestigious law firms have followed suit, raising their compensation for junior associates. These firms, as reported by the Journal, include Cadwalader, Wickersham & Taft LLP; Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC; and Proskauer Rose LLP. This wave of salary increases comes on the heels of firms reportedly distributing bonuses throughout the pandemic, indicating a robust financial performance within the corporate law sector despite economic uncertainties.
Scales of justice balanced with stacks of hundred-dollar bills, symbolizing the high corporate lawyer salary in New York City, especially for entry-level positions at prestigious law firms.
Data from a recent survey conducted by the National Association for Law Placement (NALP) corroborates this upward trend in corporate lawyer salaries. The survey revealed that the median first-year corporate lawyer working at firms with over 700 employees earned $190,000 annually at the beginning of 2021. Notably, this figure represents a more than 20 percent increase compared to 2017, even before factoring in the latest round of salary hikes.
Looking at the broader spectrum of corporate law firms, the NALP survey indicated that the median first-year salary across all firm sizes was $165,000. This figure itself is a substantial $10,000 increase from 2019, the last year the survey was previously administered, demonstrating a consistent growth in entry-level corporate lawyer compensation.
Geographic location plays a significant role in determining corporate lawyer salary. Attorneys working in major legal markets such as New York City and Los Angeles command the highest pay scales. Conversely, the survey identified the southwest region as having the lowest first-year salaries, with entry-level lawyers earning a median of $130,000.
The legal industry, like many others, experienced economic pressures during the pandemic. Nearly two-thirds of law offices reportedly reduced employee pay in 2020 as the economy contracted. However, the survey data also shows a swift rebound, with compensation surging upwards again by the end of the year, setting the stage for the current boom in corporate lawyer salaries, particularly in high-demand markets like New York. This rapid recovery and subsequent salary surge underscores the enduring value and profitability of corporate law expertise in the contemporary legal landscape.
