A career at an elite global law firm like Latham & Watkins represents the pinnacle of the legal profession for many ambitious lawyers. Known for handling high-stakes, multi-billion dollar deals and landmark litigation for the world's leading companies, the firm is as famous for its demanding work as it is for its top-tier compensation. For those who can secure a position, the financial rewards are significant, with first-year associates earning well over $200,000 in base salary alone.
This article provides a data-driven look into the salary structure at Latham & Watkins, breaking down the key factors that determine compensation and offering a clear picture of what you can expect to earn at one of the world's most prestigious law firms.
What Does a Lawyer at Latham & Watkins Do?
Latham & Watkins is a full-service global law firm, meaning its lawyers work across a vast spectrum of practice areas. An associate's daily responsibilities are demanding and intellectually rigorous, often involving:
- Advising Major Corporations: Providing legal counsel to Fortune 500 companies, financial institutions, and emerging tech giants on complex matters.
- Executing Transactions: Conducting due diligence, drafting contracts, and negotiating terms for mergers and acquisitions (M&A), private equity buyouts, and capital markets offerings.
- Handling High-Stakes Litigation: Representing clients in complex commercial disputes, white-collar defense cases, intellectual property battles, and regulatory investigations.
- Legal Research and Writing: Drafting memos, briefs, and motions that form the backbone of legal strategy and argumentation.
The work requires long hours, meticulous attention to detail, and the ability to perform under immense pressure. In return, the firm invests heavily in its talent through formal training, mentorship, and, of course, a highly competitive compensation package.
Average Latham & Watkins Salary
Latham & Watkins, like other elite "BigLaw" firms, utilizes a lockstep compensation system for its associates in major U.S. markets. This means that base salaries are standardized based on an associate's class year (the year they graduated from law school), not on their individual performance or practice area.
The firm adheres to the prevailing market-rate scale, often referred to as the "Cravath Scale," named after the firm that traditionally sets the bar for associate pay. As of early 2024, the associate base salary scale at Latham & Watkins is as follows:
| Class Year | 2024 Base Salary |
| :--- | :--- |
| First Year | $225,000 |
| Second Year | $235,000 |
| Third Year | $260,000 |
| Fourth Year | $310,000 |
| Fifth Year | $365,000 |
| Sixth Year | $390,000 |
| Seventh Year | $420,000 |
| Eighth Year+ | $435,000 |
*Source: Information compiled from industry reports by Above the Law and Big Law Investor, and corroborated by user-reported data on Glassdoor.*
It's crucial to note that these figures represent *base salary only*. Associates are also eligible for substantial year-end bonuses, which can range from $15,000 for first-years to over $115,000 for senior associates, depending on firm performance and meeting billable hour targets. According to Glassdoor, the total estimated pay for a first-year Associate at Latham & Watkins is approximately $252,000 per year, factoring in base pay and potential bonuses.
Key Factors That Influence Salary
While the lockstep model standardizes pay, several factors are critical in determining both your initial access to this career path and your long-term earning potential.
### Years of Experience (The Lockstep System)
This is the single most important factor determining an associate's base salary at Latham & Watkins. As shown in the table above, compensation increases in a predictable, tiered fashion with each year of seniority. This system is designed to be transparent and fair, rewarding loyalty and growing expertise. As associates progress toward partnership or counsel positions, their compensation structure shifts to include a larger discretionary component and, eventually, a share of the firm's profits for partners.
### Geographic Location
For its U.S. offices in major legal markets like New York City, Los Angeles, Chicago, Washington, D.C., and Silicon Valley, Latham & Watkins pays the same lockstep salary. This ensures uniformity and makes transfers between these key offices seamless from a compensation standpoint. Salaries in international offices (e.g., London, Hong Kong) are typically set according to the top of that specific market and may differ from the U.S. scale due to currency exchange rates and local market conditions.
### Area of Specialization
At the associate level, your practice area—whether it's Mergers & Acquisitions, Capital Markets, or Litigation—does not affect your base salary. A third-year M&A associate earns the same base pay as a third-year litigation associate. However, specialization can influence your career trajectory and bonus potential. An associate in a particularly busy and profitable practice group may have more opportunities to bill hours and could potentially receive a larger discretionary bonus. Furthermore, certain specializations may offer more lucrative exit opportunities to in-house positions later in a career.
### Company Type (The "BigLaw" Premium)
Working at a firm like Latham & Watkins places you in the absolute top tier of legal industry compensation. The "BigLaw" business model, which serves institutional clients on high-value matters, supports these salary levels. To put it in perspective:
- The median pay for all lawyers in the U.S. was $145,760 in May 2023, according to the Bureau of Labor Statistics (BLS).
- A first-year associate at Latham & Watkins earns a base salary that is over 50% higher than the national median for the entire profession.
This premium reflects the complexity, stakes, and billable hours associated with the work performed at an elite global firm compared to government, non-profit, or smaller private practice roles.
### Level of Education
While your law school doesn't determine your salary once you're hired, it is the primary gatekeeper to getting a job offer. Latham & Watkins overwhelmingly recruits from "T14" (Top 14) law schools and other top-tier institutions. Graduating with high marks (e.g., Order of the Coif, Law Review) from a prestigious law school is the most critical factor in securing an initial interview and, ultimately, an offer to join the firm and enter its lucrative compensation system.
Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), overall employment for lawyers is projected to grow 8 percent from 2022 to 2032, which is faster than the average for all occupations. This growth is expected to create about 39,100 openings for lawyers each year, on average, over the decade.
However, it is essential to contextualize this data. While the legal profession as a whole is growing, competition for positions at elite firms like Latham & Watkins is, and will remain, extraordinarily fierce. These firms hire only a small fraction of law school graduates each year, primarily those from the nation's top schools with exceptional academic records.
Conclusion
A career at Latham & Watkins offers a pathway to one of the most financially rewarding and professionally challenging jobs in the legal industry. The compensation is transparent, generous, and driven primarily by seniority through a lockstep system that sets the standard for BigLaw.
For prospective lawyers considering this path, the key takeaways are:
- Top-Tier Pay: Expect a starting base salary of $225,000, with significant annual increases and large bonus potential.
- Experience is Key: Your salary is directly tied to your class year.
- Prestige is the Prerequisite: Gaining entry requires an elite educational background and outstanding academic performance.
- High Demands, High Rewards: The salary reflects the immense responsibility, long hours, and complex work involved.
For those with the ambition and credentials to succeed, a career at Latham & Watkins is not just a job, but a launchpad for a powerful and prosperous future in the world of law.