Two Texas law firms this week have joined a half-dozen national law firms in announcing associate compensation increases of $10,000 for new and more junior lawyers and $20,000 salary jumps for more senior associates.
The pay hikes will raise compensation for first-year associates to $235,000, fourth-year lawyers to $320,000 and the base salary for eighth-year associates — the year before being up for partnership — to $445,000. With annual bonuses, many corporate law firms will pay their most senior and successful associates nearly $600,000 annually.
Fort Worth-headquartered Vartabedian, Katz, Hester & Haynes and Houston-based Ahmad, Zavitsanos & Mensing announced that they are matching the associate pay raises first announced last week by New York-based Milbank.
“Our associates are doing great work,” AZA hiring partner Monica Uddin told The Texas Lawbook Tuesday. “Student debt is rising. Inflation is rising. Higher salaries also sometimes mean higher rates, and we have to be cognizant of our clients, too.”
In a June 3 memo to its associates, VKHH named partners said its pay hikes are meant to thank the younger lawyers for their contributions and to remain competitive in a legal market that is hot for top talent.
“We are nearly halfway through 2026, and the firm is off to another excellent start,” VKHH leaders stated. “VKHH is in the midst of a second quarter that will be the strongest in the firm’s history by a wide margin, from both a productivity and financial performance standpoint. As VKHH’s growth continues, we are mindful that we have asked a lot of our associates to keep pace with our rapidly expanding roster of clients and matters.”
VKHH partner Marc Katz told The Lawbook that the firm is “definitely in hiring mode.”
“We’re so busy. We need to hire junior-level associates in all of our practice areas,” Katz said.
Three national law firms with offices in Texas — Katten, McDermott and Quinn Emanuel — have also announced that they have raised associate compensation to match the other law firms.
All of the law firms experienced their best financial year ever in 2025, according to Texas Lawbook 50 data.
The top 50 law firms in Texas saw their 2025 revenue jump 14 percent and profits per partner soared more than 20 percent, Lawbook 50 data showed.