The debate about fairness and transparency in law firms gained fresh urgency this summer with the release of Law360 UK’s first gender pay gap review. Based on mandatory disclosures and voluntary reports from over 100 of the UK’s biggest firms, the review shows that men earned on average 26% more than women in 2024.

The headline figure masks wide variation. Some firms reported little or no gap, while others showed disparities exceeding 100%. Despite years of diversity programmes and commitments, the overall picture is one of slow, incremental progress. This marks only incremental improvement compared with prior years. Efforts such as leadership commitments, diversity initiatives, and flexible work policies have nudged the figures forward, but the fundamental challenge is clear, that women are still underrepresented in the highest-earning roles that shape the pay gap.

The role of leadership in driving pay gaps

Separate research, published by the Financial Times, sheds light on one of the key drivers of these disparities: who gets hired into the most lucrative practices.

Between 2019 and 2024, 80 percent of partners hired into corporate and finance teams were men. These departments consistently generate the highest fees and therefore command the highest partner compensation. By contrast, areas like employment, pensions and private client work (where women are more often hired) are closer to gender parity but less financially rewarding.

Even as women now make up 37 percent of all partners across the sector, they remain a small minority in transactional practices such as private equity, where only 15 percent of new London partners between 2020 and 2025 were women. The outcome is that women are better represented overall but remain locked out of the practices that drive the upper end of the pay scale.

This disconnect explains why the Law360 figures remain so stubborn. Pay gaps are not just about salary bands or bonuses. They are about structural access to the most profitable opportunities.

Other pay gaps

If the gender pay gap looks this stark in top law firms, the picture for other under-represented groups could be even more troubling.

• Ethnicity pay gaps: While not yet mandated in the UK, voluntary reporting by some firms has shown significant disparities, particularly at senior levels where black and minority ethnic lawyers are underrepresented in equity partnership. 
• Disability pay gaps: Data is far scarcer, but evidence across sectors suggests disabled employees face both lower average pay and fewer promotion opportunities. 

Given how entrenched the gender pay gap remains despite years of transparency, there is every reason to believe that ethnicity and disability gaps may reveal even deeper inequities.

Does this matter for compliance?

The government is currently considering tighter pay gap reporting rules, potentially requiring more detailed disclosures, narrative explanations and clearer evidence of action. For law firms, this means that firms will need to go beyond reporting numbers to show why gaps persist, especially in high-value practices. They will need to prepare for the likelihood that ethnicity and disability reporting will follow. And clients, regulators and talent will demand visible progress, not just transparency.

The way forward

Closing the gap will require more than commitments. Firms need to:

• Rethink hiring practices in corporate and finance, ensuring women and underrepresented groups get fair access to the highest-value roles. 
• Address cultural and structural barriers, such as networking patterns and assumptions about business development potential. 
• Prepare for broader reporting obligations, with systems to measure ethnicity and disability pay gaps alongside gender. 

The bigger picture

The Law360 review provides a clear reminder that progress has been too slow, and the numbers are too stark to ignore. But the solutions are within reach. Fair access to leadership, equal recognition of talent, and structural support for all lawyers, regardless of gender, ethnicity, or disability, will not only narrow the gap but strengthen the profession as a whole. For law firms, it is likely that the coming years will be a test of whether transparency can be turned into transformation

Don’t miss our guide on How to conduct ethnicity and disability pay gap reporting. It explains everything you need to know and walks you through the process. Get it here.