Skaddenfreude: Seyfarth Shaw Leaves the List of Shame
Hey, guess what? Seyfarth Shaw held some “focus groups” with its associates, and the focus groups told them: WE WANT MORE MONEY!!!
And Seyfarth Shaw, despite prior expressions of reluctance, decided to go along. Their memo, announcing associate pay raises, appears after the jump.
Here’s the Seyfarth Shaw memo. It was first posted in the comments, but we have verified it with a source at the firm. Enjoy.
(It doesn’t appear to be retroactive, like the pay raises of so many other firms. But hey, don’t look a gift horse in the mouth.)
——-Original Message——-
From: Poor, Stephen
Sent: Wednesday, March 28, 2007 11:05 AM
To: FIRM Associates
Cc: FIRM Partners - Equity; Braun, Judy; Maremont, Linda J.; McAveeney, Jay
Subject: Associate Compensation
On behalf of the Equity Partners, the Executive Committee is pleased to announce that starting salaries for associates are being set at $145,000 (Los Angeles, San Francisco, Chicago, Washington, DC, and Boston); $160,000 (New York); $135,000 (Houston and Sacramento) and $130,000 (Atlanta). This change in starting salaries is accompanied by some additional compensation adjustments across all class levels. By Thursday, you will receive notification of any adjustment to your individual salary. In addition, there will be meetings in each office with your Office Managing Partner to discuss the adjustments in the salary scale. There will be no changes to the Firm’s minimum expected chargeable hour requirements. We share the view noted by many of you in the focus groups that maintaining the Firm’s culture and atmosphere is essential. We will continue to work towards that shared goal.
We recognize that the talents of our Firm’s associates are among our greatest assets. Thank you for the efforts you expend on behalf of the Firm and our clients and thank you for your patience as we worked our way through this process. We are proud to invest in some of the country’s finest legal talent.
Thanks,
Steve
(34) 
Comments
i love that his last name is poor when he is sending a memo about raises.
does this mean they are adjusting pay for summer associates?
Lat! Who is left on the list of shame?
Is Reed Smith still on the list of shame?
List of Shame
42. Freshfields
45. Boies Schiller
56. Irell & Manella
71. Patton Boggs
80. Howrey
82. Reed Smith
83. Dorsey & Whitney
86. McGuireWoods
87. Squire Sanders
89. Finnegan Henderson
93. Kilpatrick Stockton
94. Fenwick & West
96. Venable
I assure you Reed Smith should no longer be on the list of shame. The senior associates have some reason to complain (while there was no increase in billable hours which is pretty low comparably, there also was not much of a salary increase beyond years 1 and 2). That said, the first years are being paid market rates come July 1.
But if someone were to email the Reed Smith Matrix (complicated chart explaining hours required for increase v. hours that will get you what you're already getting), perhaps ATL could officially take RS off the list...
Irell went to $145K - full LA scale long ago. Don't know why that should land this LA firm in the hall of shame. If it does, shouldn't Munger, and the LA offices of O'Melveny, Lathum, and Gibson be there as well, along with just about every other major LA firm?
I can confirm Reed Smith has announced that they will raise, as follows:
"effective July 1, (i) $160,000 in New York; (ii) $145,000 in California, Washington, DC, and Chicago; (iii) $135,000 in Philadelphia, Wilmington, and Falls Church; (iv) $130,000 in Pittsburgh and Princeton; (v) $125,000 in Leesburg; and (vi) $120,000 in Richmond. In light of the starting salary increases, the targets and ranges that we use to administer compensation for second year and more senior associates will also increase. Also, as indicated at the meeting today, the first year salary in Philadelphia will increase an additional $10,000, to $145,000, effective with the Class of 2008."
Note that the announcement had plenty of negative info as well, since the firn (1) eliminated their 2% contribution to the 401K, (2) provided that only those who billed 1900 hours get the raise, and (3) moved the annual date of annual salary adjustments from October to January (saving them 3 months). Thus a mid-level associate who contributed to their 401K gets a raise of about $89 after taxes.
6:51 is correct. All major LA players have moved to the $145,000 scale, including the larger midsize firms. Frankly, there is no excuse for any of those on the list of shame to persist in their stubborness...
morgan lewis NYC. haven't heard of an official raise up on this here website.
6:13 - Venable put everyone across the board on the Washington/LA $145K pay scale (including the <10 associates in NY) about a month ago.
Why did Reed Smith put Philly at only $135??????????????????????????????????????????????????????????????????????????? PLEASE ELABORATE!
BUT -- it's pretty SHAMEful to not make the raises retroactive to jan 1, but instead have them start on july 1 or even later. hunton could get away with that b/c they were paying so high above market in many of their cities (including their home office). reed smith and venable are just plain cheap.
If you have memos or other proof, please email them to Lat, so they can be posted for everyone's benefit.
will someone tell us desperate summers what all of this means for us? is this all taking place early enough to impact our summer salaries?
anybody?
please?
"All major LA players have moved to the $145,000 scale"
Wrong. Quinn is at 160.
Is there a firm with a starting salary of $165,000? I thought I read that on here somewhere.
Is there a firm with a starting salary of $165,000? I thought I read that on here somewhere.
williams and connolly. but they do not pay bonuses.
10:44, Are you a 2007 summer assoc at Reed Smith NY?
Alston + Bird to 145k in ATL to match Charlotte. Heard this from several associates...anyone else get a confirmation?
10:44 am:
It is case by case with firms what they pay.
Isn't it funny that everyone whines about their firm not paying enough? If you feel that way, remember your god given right to hang up your own shingle and keep what you kill.
10:44 am:
I think using the word "desperate" is pretty inappropriate for your circumstance. Now, if that extra $1200-1500 after-tax increase you might make over the course of the summer is all you need to finally pay for your little brother's kidney transplant, maybe I'm wrong. Otherwise, you sound like a snot-nosed brat. Enjoy your summer, I'm sure they'll love you!
10:46 am, you are a mighty doucebag, aren't you? Quinn is not commonly considered one of the "major" LA players, despite being a well-respected trial firm. LA's market is the Big 3/4 and their associated non-LA peer firms at the top end, the Alschulers, Loebs, and AMs in the middle, and then the high-end lit / IP boutiques. Most of whom are not on a pay scale of $145, 155, 170, 190, etc. Fair to say that establishes the market, outliers like Quinn notwithstanding. Skadden, W & C, and Milbank all pay $160 in LA, but again, don't really count. Douchebag.
Hear K&S will go to 145K in ATL effective Sept. 1. Any confirm?
When is the Seyfarth redemption from the List of Shame effective?
As someone pointed out earlier, raising in July and having it not be retroactive is a jip and firms that do this should be called out as the cheapskates they are. If you aren't raising retroactive to Jan 1 like every other decent firm in the country, it should be widely known and that firm should be widely derided.
Way to go RS!!! About time but I'm happy now...
I hear the Seyfarth salary bump has not helped the dismal morale at Seyfarth's NY outpost. Apparently, this week, three associates escaped simultaneously from the RE department - major loss of capacity. Two went to SR. Word is that working conditions there are dismal in finance group. A few great partners, a few really nasty ones. Xanax material. Godspeed fellow associates . . .
Make that 4 associates. Another one just left.
What is the morale at Seyfarth Chicago? Any change since the raise announcement?
Word is that another two associates just resigned from Seyfarth's New York office - real estate/finance dept. More may be going soon . . . a real exodus and a blow to their upcoming move to their new fancy digs. Looks like ther will be plenty of empty offices. If memory serves, that's 7 or 8+ departures. Must be a loathsome place to work . . .
It doesnt take one long to realise why people hate lawyers after reading this board. People complaining about making 135K a year.....unbelievable. I know we work long hours for our money but we still have it better than most.