The $30m partner era has arrived in the US - but money isn't the full story

The era of the $30 million law firm partner has arrived in the US, although eye-watering levels of pay only tell part of the story.

Speaking on The Non-Billable Podcast, David Nicol, co-head of US at legal recruiter Marsden, breaks down how the world’s largest legal market works, from the changing hierarchy of elite firms to the economics driving partner moves.

At the very top, pay has moved to another level. Nicol says some partners at elite firms are now earning “in the $30 to $35 million range”. The rest of the market has followed, pushed up by rising billing rates and intense competition for talent.

Understanding the market requires looking beyond simple league tables. While rankings like Am Law focus on revenue, Nicol says they are “not necessarily the only measure of success”, with firms like Wachtell and Cravath ranking lower by revenue despite being considered the most prestigious firms in the country.

The new elite

The traditional dominance of Wall Street firms has also been challenged. Over the past decade, Kirkland & Ellis and Latham & Watkins have expanded aggressively, in what Nicol describes as a push for “global domination”. Today, he says, they are “every bit as prestigious” as the old guard.

Even the most established names are feeling the pressure. Wachtell and Cravath - long seen as largely insulated from lateral hiring wars - have both seen a notable run of partner exits over the past year, with rivals increasingly able to prise away top talent.

Geography continues to define the market too. New York remains the centre, particularly for private equity, finance and high-stakes litigation. But strong regional hubs have emerged, from tech-driven Northern California to energy-focused Houston and the regulatory centre of Washington DC.

Pay, platforms and partner moves

At the top end, money is only part of the partner movement equation. Firms may be writing large cheques, but Nicol says many moves come down to a more practical question: “how can they service their clients more effectively?”

That helps explain why platform depth - not just pay - is becoming a key battleground. Firms with broader capabilities can win more mandates, particularly as client demands evolve.

That dynamic is playing out in particularly active areas of the market. Restructuring, Nicol says, is especially busy, as firms build out hybrid practices combining finance, capital markets and restructuring expertise to better serve clients.

A headline example is David Nemecek, the Kirkland partner credited with pioneering liability management exercises (LMEs), who moved to Simpson Thacher earlier this year, with several partners following.

Looking ahead, Nicol sees a market that continues to be shaped by private capital, restructuring demand and the rise of AI. The key question is whether the current trajectory can continue, or whether even the most successful firms will start to hit limits as they grow ever bigger.

Listen to the full conversation with David Nicol on The Non-Billable Podcast.