The term “Biglaw” is industry shorthand for large, high-revenue, and prestigious law firms that primarily serve institutional and corporate clients. This designation acknowledges a firm’s market position and financial power within the legal sector. These firms handle complex, high-stakes matters for major companies, financial institutions, and global entities. Their scale, compensation structure, and demanding culture set them apart from the broader legal profession.
Core Criteria for Biglaw Status
A firm’s inclusion in the Biglaw category is determined by size, revenue, and operational scope. Firms must demonstrate a massive scale, often exceeding 500 attorneys, allowing them to manage the largest legal matters and provide the specialization required for multinational corporate clients. Financial power is a defining factor, with firms consistently generating gross revenues often exceeding $500 million annually, driven by premium rates. Biglaw firms also maintain a broad geographic footprint, with multiple offices in major financial and political hubs to provide seamless service for global transactions.
The Biglaw Compensation Model
Compensation in Biglaw operates on a standardized system, which is a primary attraction for top legal talent. This structure is often referred to as the “Cravath Scale,” setting the industry benchmark for associate pay. The scale establishes a uniform, “lockstep” salary based solely on the associate’s class year, meaning all first-year associates earn the same guaranteed base salary. A first-year associate’s base salary often begins around $225,000, increasing predictably each year. Associates also receive standardized year-end bonuses, though some firms may tie them to billable hours targets.
Internal Structure and Hierarchy
Biglaw firms are built around a distinct hierarchy that dictates roles and financial participation. Associates occupy the entry-level position, performing the bulk of the legal work under senior attorneys. Their career is governed by an “up or out” partnership track, requiring them to advance to partner status or eventually leave. The highest tier consists of partners, divided into equity partners, who are owners sharing in profits and losses, and non-equity partners, who hold a senior title and salary but lack ownership. Experienced lawyers may also hold the title of “counsel” or “of counsel,” a non-partner, salaried position.
The Culture and Expectations
Working in a Biglaw environment is characterized by a demanding work ethic and intense focus on client service. The primary metric for productivity is the billable hour, with associates expected to meet high annual targets, typically ranging from 2,000 to over 2,200 billable hours per year. This requirement translates into long days and frequent weekend work. The legal work involves specialization in fields like mergers and acquisitions (M&A) or complex antitrust litigation. Firms service a client base of Fortune 500 companies and major financial institutions, meaning matters are often time-sensitive and involve billions of dollars.
Prestige and Industry Rankings
Biglaw status is measured through external industry rankings that track financial performance and professional reputation. The Am Law 100 ranks the top 100 U.S. law firms based primarily on gross revenue, indicating financial health and market dominance. Prestige is measured by the Vault 100, which ranks firms based on internal surveys of associates rating their competitors’ reputation. These rankings help law students and attorneys gauge a firm’s standing. Firms topping these lists are typically concentrated in global financial centers like New York and London, reflecting their focus on the largest corporate markets.