How Much Do Lawyers Really Earn?

There are many reasons why people choose to$500,000 or even $1,000,000 or more. With the fact
pursue a career in law; to work in a stimulating workthat private firms established as the most lucrative,
environment; to help other people that need the aid ofwhat areas of law then are the best and have the
a talented lawyer; to attain the prestige and socialhighest salary and bonus potential.
status that having a Juris Doctor can offer. But oneFor a long time 'personal injury' was particularly
thing that almost all lawyers will agree on...yet seldomlucrative because of the incredible amounts awarded
admit to, is that one of the primary reasons manyin damages during an extended period. With the
become lawyers is because of the potential financialproliferation of law schools, the overall 'lowering' of
rewards that a legal career can offer. The questionstandards of typical lawyer training and with changes
then becomes...just how much do lawyers make?in the legal system to put 'caps' in place for certain
What areas of law are the most lucrative? Finally, howtypes of injuries and awards, this is no longer always
can you position myself to most aggressively attainthe case.
those positions that will gain personal wealth?These days some of the best areas to practice law
While there is no sure-fire way of guaranteeing thattake into consideration 'dual expertise' or are 'niche
attaining a law degree will make you wealthy there arecategories'. For example, Pharmaceutical law,
certain rules to keep in mind and certain areas of lawintellectual property/patent law, corporate law,
to pursue that have a much greater chance of thatcommercial real estate, tax, regulatory compliance and
becoming the end result than others. One of the rulescomplex civil and commercial litigation. With these keep
is that private law firms always pay more than publicin mind working in large national firms that are more
sector jobs. A 2001 survey found that of thoselikely to take on 'class action' or 'big target' cases
graduating from a top 20 law school, jobs in the publictypically have more upside than smaller local firms.
averaged $50,000 while private firm salaries wereOther important factors that contribute to earnings as
double that near $125,000.an attorney include years of experience, ability to bring
The next thing to keep in mind is that just like manyin business, billable hours, age, gender, travel
Wall Street jobs, a substantial part of high payingrequirements/ability, law school ranking and GPA. The
lawyers make their income through a bonus structure.trend in Legal salaries, especially for first and second
Bonuses are typically non-existent in public sector oryear graduates seems to be towards two distinct
judicial jobs while working in corporate law positions'ranges. These are clearly defined by the ranking and
can offer bonuses, but typically not nearly as much ascaliber of law school. In recent data gathered by the
the private firms will offer. It is not unusual in aAssociation of Legal Career Professionals, the two
well-positioned private firm for the bonus to equalranges for first year grads were between $45-$55k
100% or much more than the base salary.and between $135-$145,000.
This potential upside carries risk of course...if the privateThe lower of these was for 'average' public sector
firm does not bring in successful cases they may cutand judicial positions and the higher for top law firms in
staff rapidly or even go out of business. The potentialnational private firms. This shows the disparity...and
upside, however can be very lucrative and is whyimportance of attending a top tier law school and for
positions in select private firms can be extraordinarilytargeting private national firms if income is a primary
competitive. Partners in a 'top' law firm can pull inobjective for pursuing a legal education.