Skaddenfreude: Paul Weiss Has Matched Simpson Thacher
That’s what a number of you said in comments.
And then we were emailed this memo (which we have verified with multiple sources at Paul Weiss, so we vouch for it 100 percent):
PAUL WEISS RIFKIND WHARTON & GARRISON
We are pleased to announce that we have increased associate compensation effective January 1, 2007 as follows:
Class / 2007 Base Salary
2006: $160,000
2005: $170,000
2004: $185,000
2003: $210,000
2002: $230,000
2001: $250,000
2000: $265,000
1999: $280,000
1998 and senior: $290,000
We are very appreciative of your hard work and dedication. The increases will be reflected in your February 15, 2007 paycheck. We expect to determine the bonus portion of your 2007 compensation near year-end as usual.
*****************************
As you can see, these numbers are completely consistent with the new base salaries announced yesterday by Simpson Thacher. Any firm that wants to play in the same league as PW and STB will have to ante up.
Congratulations to the Paul Weiss and Simpson Thacher folks!
Earlier: Breaking: Simpson Thacher Raises Associate Base Salaries!!!
Skaddenfreude: Who Has Matched Simpson?
(27) Comments
Comments
Notice that Paul Weiss's memo states that it has "increased associate compensation", not just "increased base salaries". This, in conjunction with the statement that the "bonus portion of your 2007 compensation" will be determined at year-end means that Paul Weiss has promised that this bump in base salary is a flat-out increase in total comp.
IT IS TRUE -- VERIFIED
Paul Weiss hasn't promised anything. At the end of the year they will decide what to do.
If they give out less at the end of the year in total comp, then they haven't really "increased associate compensation", have they? Not sure they would want to be known as the firm that lied to their associates about what the increase in base salaries really meant.
In contrast, if Simpson chose to give out lower bonuses to compensate for the higher base, they would not be liars, since the Simpson memo only said that "base salaries" were increased, not that "associate compensation" was increased.
no, all this means is that bonuses cannot drop by 15,000. I mean, saying that they will determine bonuses at the end of the year means just that: bonuses will be determined... at the end of the year... as in they have not determined what they will be yet, since it is january, which is not the end of the year
I guess Paul Weiss is tier one, bitches!
Funny, I read that the other way
Arguably, PW could still drop bonuses by the full $15K (for first-years) and still have "increased" associate compensation based on a few different readings:
1. Time value of money - stick the excess in the bank at 5% and you've "increased" compensation.
2. Summer associate compensation - most likely, this will reflect an increase in summer associate compensation from $2800 to $3100 per week. For those summer associates (who later become full-time associates), compensation has been increased.
3. Understanding the term "compensation" to mean "base compensation" because bonuses are not ever guaranteed.
But, in all likelihood, these theories are all false and PW will likely keep bonuses the same, or at least not drop them by more than $10K next year.
Is this retrospective? I note the "increases will be reflected in your February 15, 2007 paycheck" wording.
Time for Weil to step up and match - and time for weil to increase senior associate pay so that it stops lagging the market by 20k
It states that the increase is "effective January 1," so it has to be retroactive.
CWT matched
CWT matched.
confirm the CWT matching
Screw matching. It's time for someone to go nuclear in this money race. Let's see how firms respond to an increase to 200k.
CWT matched
time for Weil to step up and match.
McCarter & English nearly MATCHED!!! up ten grande across the board!!!!! YAAAAAAAY
Has it occured to these law firms that in order not to suffer productivity losses they should all match ASAP? Think - every non-STP, non-PW, non-CWT associate is reloading the same boards over and over.... Even though we are all pretty sure we'll get our raises, we can't help it. Senior partners out there - you know you will match eventually, so just do it already!
McCarter confirmed
MLB matches! except San Fran.
MLB CONFIRMED!
Who is MLB?
I would think MLB is Morgan Lewis. Bud Selig already pays way over market.
Did MLB raise the salary in their philly offices as well? They were 135k before the Simpson move?
I hear that Gilnetti, Blankstein, Poppa, Katpatensiki of Bronx, NY did not match