Nationwide Pay Raise Watch: The Latest Announcements
It's the Friday before a major holiday -- and firms are scrambling to get their pay raise announcements out the door. It's a nice way to send your bedraggled and overworked hardworking associates into a three-day weekend (assuming they don't need to come in on Monday).
We're about to sign off for the weekend, and we won't be back until Wednesday. (Billy Merck, who has filled our shoes in the past, will be your guest editor on Tuesday.)
Before we go, here are the latest salary announcements that we've confirmed:
1. McDermott Will & Emery2. Manatt, Phelps & Phillips (Hat Tip: Lateral Link)
But the Manatt "raise" has a catch. Its effective date? January 1, 2008.
HA. That's kind of funny, in a sick sort of way -- provided you're not at Manatt.
Memos appear after the jump. And we're out the door. Have a great holiday weekend!
Update (2:50 PM): We've verified the Pillsbury Winthrop raise news. Memo below.
Update (3:25 PM): Jeez, you're going to make us miss our flight to Las Vegas. Memo from the D.C. office of Winston & Strawn, added after the jump.
MCDERMOTT WILL & EMERY ASSOCIATE PAY RAISE MEMO
Date: May 25, 2007
To: All Attorneys
From: Management Committee
Re: Associate Compensation
Consistent with the Firm’s policy of paying our Associates fair and competitive compensation, we are pleased to announce that retroactive to May 1, 2007, we are revising our Associate salary scales in most of our U.S. cities, as follows:
Boston, Chicago, Washington, D.C., 4 California Offices
Class of 2007 $160,000
2006 160,000
2005 170,000
2004 185,000
2003 210,000
2002 230,000
2001 250,000
2000 265,000
1999 280,000
This change will also affect certain Income Partners’ draws. Except in rare circumstances, the minimum Income Partners’ draw in these offices will be increased to $270,000.
cc: Dave Alexander
William Norris
Nancy Berry
MANATT PHELPS & PHILLIPS ASSOCIATE PAY RAISE MEMO
At the beginning of the year, we implemented base compensation increases for our associates. Since then, major New York based firms again raised associate base compensation levels. Some of the large California-based and national firms met or expressed their intention to meet that adjustment initially, in their New York offices and, more recently, in their national offices.
We are committed to excellence and to being part of a select group of first tier national firms in all aspects of our business. Our associates are integral to our progress and continued success. To attract and retain the best, to consistently deliver excellent client service, and to expect productivity which reflects today's increasingly competitive legal services environment, we must provide compensation arrangements that are competitive and fair . We must also ensure that our system reflects our values and recognizes the importance to a growing number of our lawyers of maintaining a work schedule that comports with other personal and community commitments.
The Board of Directors and management have considered a range of factors and reviewed our base compensation arrangement for associates with a view toward these objectives and values.
We are pleased to announce that, effective January 1, 2008, associate base compensation levels will be increased in each of our offices as follows:
1A--$160,000
1B--$170,000
2A--$185,000
2B--$210,000
3A--$230,000
3B--$250,000
3C--$265,000
As associates look forward to this year's ARC process and bonus/level decisions, I want to emphasize that, as in the past, we will continue to compensate our associates who demonstrate the highest levels of excellence and work effort commensurate with their peers at other first tier firms."
[Hat Tip: Thanks to the crew at Lateral Link for the Manatt memo.]
PILLSBURY WINTHROP SHAW PITTMAN ASSOCIATE PAY RAISE MEMO
As you are all aware, we have seen a recent movement in associate compensation in several U.S. markets outside of New York, as well as in London. The Board has now had an opportunity to consider that data, as well as valuable input from our associates, partners, and clients. Pillsbury will increase the salaries for first year associates to $160,000 in DC, NoVa and all of our California offices (with the exception of Sacramento, which is still under consideration). Corresponding salary adjustments for other classes will also be made. Salaries for associates in our London office will be adjusted consistent with the UK market. We will continue to monitor developments in Houston. The full salary schedule is attached for your reference. Salaries for counsel will also be reviewed and adjusted, as appropriate.
As part of this program, we will not increase our current billable hour requirement of 1950 billable hours and current overall hour requirement of 2200 hours. We are also retaining our present bonus program which was announced earlier in the year. The salary increases will take effect as of June 1, 2007, and will be reflected in the June 15, 2007 pay period. You will be informed by your Practice Section Leader next week regarding your individual 2007 compensation.
This move by our Firm underscores our continued commitment as a market leading firm, demonstrates our desire to invest in and retain our very talented attorneys and positions us to attract the best new talent to our Firm. Thank you for your contributions toward our success to date, and we appreciate your continued commitment and focus during the remainder of this year.
If you have any questions or comments, please do not hesitate to contact me. Jim
[Jim = Firm Chair James M. Rishwain, Jr.]
WINSTON & STRAWN -- WASHINGTON, DC -- ASSOCIATE PAY RAISE MEMO
TO: Washington DC Associates
FROM: Tom Fitzgerald
Tom Mills
DATE: May 25, 2007
RE: Associate Base Compensation
We are pleased to announce that the Firm is increasing base compensation for Associates in our D.C. office, retroactive to May 1, 2007, as follows:
Class Year Form Base Base Eff. May 1
1st $145,000 $160,000
2nd $155,000 $170,000
3rd $170,000 $185,000
4th $190,000 $210,000
5th $210,000 $230,000
For Associates in the classes 6th, 7th, and 8th year, and above, market increases will be made after consideration of current base, and the maximum in each class will be as follows:
6th $250,000
7th $265,000
8th+ $280,000
These increases will be reflected in your June 15, 2007 paycheck.
Please contact Tom Fitzgerald or your Office Managing Partner, Tom Mills, with any questions you may have.
Thank you for your hard work and your contributions to our success.
(273) Comments
any word from Jenner Chicago?
Current DC list of shame ($145K)
1. Covington
2. Winston
3. Dickstein
4. Howrey
5. Wiley Rein
6. Arent Fox
7. Venable
8. Crowell & Moring
Corrections? Updates?
I really don't understand the Manatt thing
Jenner raised to 175. Or maybe lowered down to 125.
2:55 - Then you are an idiot.
At this point, I just want to go home and drink a beer.
Current DC list of shame ($145K)
1. Covington
2. Winston
3. Dickstein
4. Howrey
5. Wiley Rein
6. Arent Fox
7. Venable
8. Crowell & Moring
9. Bingham
CH list of shame:
Jenner
Jones Day
Katten
Sonnenschein
Winston
Holland & Knight
Bell Boyd
Baker McKenzie
Foley
Wildman Harrold
DLA Piper
Schiff
McGuireWoods
Vedder Price
Jenner & Block?
Where are all the big Jenner talkers from earlier this week who were convinced they would beat even Kirkland out in Chicago? What's going on?
Has Steptoe raised salaries in DC?
Morgan Lewis belongs on the DC list of shame. I think the DC office has 200+ attorneys.
Why are some of these cheapo firms not making raises retro to 5/1? Firms that give raises retro to 6/1 are really trying to cut small corners.
Wow am I glad I don't work at Manatt. Shit. Why not push it out to 2009 and see if you can get away with it?
This is the law firm equivalent of blue balls. Anyone want to take it one step further?
Kick ass for PWSP.
W&C should be on DC list of shame too since $165 w/o any bonus is effectively a $145 salary.
Interesting plan by Manatt. What is their contingency if everybody raises again in January?
I agree with 3:18.
UPDATED DC LIST OF SHAME
1. Covington
2. Winston
3. Dickstein
4. Howrey
5. Wiley Rein
6. Arent Fox
7. Venable
8. Crowell & Moring
9. Bingham
10. Williams & Connolly
Winston DC just raised!!! Retroactive to May 1.
did Winston Chicago raise too?
jenner raised to 155
are DC summers getting these raises?
no DC summers need to shut up, head down, and be thankful to be earning more than most average americans.
cov up to 180
But how much is that in schrutebucks?
no, DC summers need to keep their mouths shut, head down, and be happy to earn more in a summer than the average american in a year.
cov to 185?
Hartford to 110!
(Maybe I can will it to happen.)
and DC associates should learn how to post blog comments, lest they embarrass themselves and forever tarnish the good name of "Anonymous"
3:36 - the same as the conversion rate of leprachauns to unicorns.
3:36 - the same as the conversion rate of leprachauns to unicorns.
you're just jealous we're making more than market
UPDATED DC LIST OF SHAME
1. Covington
2. Winston
3. Dickstein
4. Howrey
5. Wiley Rein
6. Arent Fox
7. Venable
8. Crowell & Moring
9. Bingham
10. Williams & Connolly
11. Kirkpatrick & Lockhart
did winston really raise in DC but not Chicago?
Perhaps a Chicago memo from Winston is coming shortly???
Winston is seriously thinking of not raising Chicago?
Interesting that Orrick, which started this whole round of raises, made the raise effective 6/1. Half the firms to match made their raises retroactive to 5/1.
Winston?! Jenner?!
New CA List of Shame
1) Thelen Reid*
2) Reed Smith
3) Morgan Lewis
4) Bingham
5) Perkins Coie
6) Bryan Cave
7) Townsend*
8) Dechert
9) A bunch of Chicago firms except for Kirkland & Ellis, Sidley, McDermott, Mayer Brown, DLA Piper, and Winston & Strawn
* denotes CA-based firm
...needs to go to 175K. Attrition is out of this world.
Boston List of Shame:
Bingham McCutchen
Choate Hall & Stewart
Foley Hoag
Edwards Angell Palmer & Dodge
Goulston & Storrs
Nutter
Foley & Lardner
Greenberg Traurig
Dechert
Holland & Knight
Seyfarth Shaw
Has DLA Chicago raised?
Boston List of Shame:
Bingham McCutchen
Choate Hall & Stewart
Foley Hoag
Edwards Angell Palmer & Dodge
Goulston & Storrs
Nutter
Foley & Lardner
Greenberg Traurig
Dechert
Holland & Knight
Seyfarth Shaw
K+L Gates
Chicago list of shame: Winston & Jenner!
Texas to $165!
Date: May 25, 2007
To: All Attorneys
From: Executive Committee
Re: Associate Compensation
Consistent with the Firm’s policy of paying our Associates fair and competitive compensation, we are pleased to announce that retroactive to May 1, 2007, we are revising our Associate salary scales in Texas, as follows:
Class of 2007 $150,000
2006 150,000
2005 160,000
2004 175,000
2003 190,000
2002 210,000
2001 230,000
2000 245,000
1999 260,000
anyone notice some overlap on the Lists of Shame?
Wow - Manatt is really bush league.
Someone explain to me how McDermott's system works for income partners. The memo says that the minimum income partner draw will increase to 270K, but a McDermott 8th year makes 280K. I know the income partner has job security that a senior associate does not yet have, but this still seems weird. Am I missing something? Is a "draw" different than your total compensation for the year?
So if you are keeping score at home it seems that the Chicago Market breaks down as follows:
At Market:
Kirkland
Latham
Mayer Brown
McDermott
Paul Hastings
Sidley
Skadden
Below Market:
Baker McKenzie
Bell Boyd
Chapman & Cutler
DLA Piper
Drinker Biddle
Foley
Greenberg Traurig
Holland & Knight
Jenner
Jones Day
Katten
Kaye Scholler
Lock Lord Bissel Lidell
McGuireWoods
Michael Best
Perkins Coie
Reed Smith
Schiff
Sonnenschein
Vedder Price
Wildman Harrold
Winston
Did I miss anyone?
yo mamma raised
White Girls with Asian Guys! Yea!
"Remember why you went to law school: to make a difference. And follow your heart."
I went to law school for the money. NY to $200K!!!
I went to law school for the sex!
Skadden to announce 190 imminently.
We went to law school for the Asian Guys!
You are all nuts and hopefully, will all be fired soon and we can start again
I went to law school for the God-fearing pale, white men!
3:49, you can go ahead and at Thelen Reid to the DC List of Shame too.
Re: DC List, did Dickstein raise to 160K for IP folks back in Jan/Feb? I thought it said that on ATL somewhere.
Dechert Palo Alto raised to 160, matched the rest of the scale all the way up.
Dechert CA went up!! Woot!
Any other Chicago raisers today?
Dechert DC also did the same as Dechert CA...
Current DC list of shame ($145K)
1. Covington
2. Winston
3. Dickstein
4. Howrey
5. Wiley Rein
6. Arent Fox
7. Venable
8. Crowell & Moring
9. Bingham
10. Dow Lohnes
Don't forget Jenner, 5:25
Add Morgan Lewis to the DC list of shame.
Bee-yotch!
There is an irony in 4:32's labeling of the firms as "above market" and "below market" - seeing as how most of the firms employing the majority of the attorneys are "below market" - not sure but it seems to me that "at market" means where the MAJORITY of large firms are - so in a sense the right labels would have been "at market" and a"bove market." Sorry Chicago but "the market" seems to still be at 145K - just look at 4:32's list and it's obvious.
Current DC list of shame ($145K)
1. Covington
2. Winston
3. Dickstein
4. Howrey
5. Wiley Rein
6. Arent Fox
7. Venable
8. Crowell & Moring
9. Bingham
10. Dow Lohnes
11. Jenner
12. Morgan Lewis
Current DC list of shame ($145K)
1. Covington
2. Winston
3. Dickstein
4. Howrey
5. Wiley Rein
6. Arent Fox
7. Venable
8. Crowell & Moring
9. Bingham
10. Dow Lohnes
11. Jenner
12. Morgan Lewis
13. Thelen Reid
5:34,
Care to count up the number of associates that your so-called "above market" firms employ. I would venture a guess that those 7 firms have as many or more than the other ones listed at 4:32. So, market has been set in Chicago: 160K
People didn't the post above just say Winston gave Associates a pay raise?
What kind of job security does a McDermott income partner making the minimum draw have?
Bee-yotch!
Can someone confirm Dechert DC? All associates or do they still have the tiers?
Chicago firms:
At Market:
Kirkland
Latham
Mayer Brown
McDermott
Paul Hastings
Sidley
Skadden
Below Market:
Baker McKenzie
Bell Boyd
Chapman & Cutler
DLA Piper
Drinker Biddle
Foley
Greenberg Traurig
Holland & Knight
Jenner
Jones Day
Katten
Kaye Scholler
Lock Lord Bissel Lidell
McGuireWoods
Michael Best
Perkins Coie
Reed Smith
Schiff
Sonnenschein
Vedder Price
Wildman Harrold
Winston
Current DC list of shame ($145K)
1. Covington
2. Dickstein
3. Howrey
4. Wiley Rein
5. Arent Fox
6. Venable
7. Crowell & Moring
8. Bingham
9. Dow Lohnes
10. Jenner
11. Morgan Lewis
12. Thelen Reid
Winston is off the list.
Current DC list of shame ($145K)
1. Covington
2. Dickstein
3. Howrey
4. Wiley Rein
5. Arent Fox
6. Venable
7. Crowell & Moring
8. Bingham
9. Dow Lohnes
10. Jenner
11. Morgan Lewis
12. Thelen Reid
Winston is off the list.
King & Spalding should be on DC list of shame.
The McDermott Income Partner Draw is just the amount they get in their paychecks. Typically McDermott does not have 8th year associates (the old system was 5 years to income partner, now its 6). Income partners are compensated from three sources: a Draw (paycheck), and then a percentage of (essentially) revenue generated and revenue originated. So if you work 2200 hours, you times that by your billing rate and take a percentage of that. And if you bring in a client with a 1M year end legal bill, you get a cut of that. Both in addition to your draw.
So what is Pillsbury's bonus structure that has remained inact?
5:56
Thanks for the info.
5:45 -- No more tiers (or tears, for that matter).
So, what exactly is the long-term situation with pay raises. Every time we go through another round of these, some firms get left behind. Are the biggest firms just sort of trying to shake out the competition?
King & Spalding should be on Atlanta list of shame.
King & Spalding is just shameful--move so quick in NYC and then let DC and ATL twist in the wind. They will pay--and how.
Covington matched, along with an increase to $3080 per week for Summer Associates, retroactive to their start dates.
Covington just raised in DC and San Francisco.
Current DC list of shame ($145K)
1. Dickstein
2. Howrey
3. Wiley Rein
4. Arent Fox
5. Venable
6. Crowell & Moring
7. Bingham
8. Dow Lohnes
9. Jenner
10. Morgan Lewis
11. Thelen Reid
Can we see the Covington memo?
King & Spalding is most definitely shameful. I guess it will always be a second-class, Southern firm after all. Nice try at hanging with the big boys.
I can confirm that Covington matched, all the way up the scale - 8th years are at 280K.
Current DC list of shame ($145K)
1. Dickstein
2. Howrey
3. Wiley Rein
4. Arent Fox
5. Venable
6. Crowell & Moring
7. Bingham
8. Dow Lohnes
9. Jenner
10. Morgan Lewis
11. Thelen Reid
12. Williams & Connolly (165 no bonus)
How does King & Spalding get a pass when Dow Lohnes and other firms far below it by any financial measure are on the list? Too shameful even for the list of shame?
Yes, Covington memo indeed!
are the dc list all dc-based firms (and not branch offices)? if not, that list is not complete by a long shot.
Please confirm: Rumor has it that Dechert went to NY scale in Philadelphia. Is that possible?
Morgan Lewis and others on the list are not DC based
Assuming someone can confirm Munger and Dechert:
New CA List of Shame
1) Thelen Reid*
2) Reed Smith
3) Morgan Lewis
4) Bingham
5) Perkins Coie
6) Bryan Cave
7) Townsend*
8) A bunch of Chicago firms except for Kirkland & Ellis, Sidley, McDermott, Mayer Brown, DLA Piper, and Winston & Strawn
* denotes CA-based firm
The list of CA-based firms has dwindled quite a bit, no?
i heard Dow Lohnes pays DC market in Atlanta
DL does pay old 145 DC scale in Atlanta. Will be interesting to see what they do when they raise in DC.
Note the fine print in the Pillsbury memo-"You will be informed by your Practice Section Leader next week regarding your individual 2007 compensation."
What this means is that you have to be at 85% of your target billable hours through April 2007 in order to receive a raise in June. Associates are provided with the opportunity of "making up" those hours with a second review at the end of June; if you hit 85% of your billables through June 30, you will get the raise effective July 1.
If you are a Pillsbury associate and you are not at 100% of your billable hours at the end of December, you will not be advanced the next salary step and you will remain at your 2007 compensation level.
Any other "market leader" firms do this? No? Didn't think so.
Try again, Pillsbury.
Wow, that sucks for Pillsbury. They should be put back on the List of Shame for that.
I don't think Pillsbury deserves List of Shame for that. It detracts from the firms on the actual list of shame. Plus, there are a few other firms noted on ATL that do that.
I'm surprised Pillsbury can do a review that fast.
Did someone confirm a Jenner raise? That would be good for us and put pressure on others.
6:10 -- feel like explaining the Dechert tier system for the rest of us?
7:26
I f---ed you wife last night. She is gorgeous.
Focus please.
7:26 -- so if you're so satisfied, why are you trolling this thread discussing compensation at 3x your level?
Oh snap. Break yo self.
No more tiers for Dechert DC. 160k for all first years; matching the scale the whole way up.
7:26 -- IM IN UR HOUSE DRINKN UR DRINKZ AND DOOIN UR WIF!!!!11!eleventy!
Winston Chicago, anyone, anyone? Please tell me they didn't raise all their offices except the home base.
I am an associate at an Am Law top 40 firm that is at or near market in all of the cities discussed on this thread. Having just received a very large raise myself, I can't help but wonder what planet some of the posters to this thread are on....debating whether a firm should be on the list of shame b/c it pays 145K to a 25 year old with NOTHING to offer (certainly not going to make your employer any money the first three years, as long as it takes new associates to do anything of substance), instead of the "market" of 160K is such a joke....shut up, feel fortunate to have the opportunity to work at a firm that is even in this conversation, and go back to work.
8:25, yes, but can you explain the old tier system?
8:38 -- easy to look down when you got a raise, eh? Go spend it instead of trolling.
I am an associate at an Am Law top-10 firm that is at the top of the market in my city, and I must say I am getting a kick out of these responses.
8:39:
http://www.abovethelaw.com/2007/02/skaddenfreude_dechert_dcs_fsg.php
I like how trolls have to point out, "I'm at an AmLaw top __ firm." Keep flogging your own dolphin. So umm, AmLaw top 40 means, what 39?
Covington has just raised.
8:38 - some of us are mid-levels and seniors who want to get paid.
the silence from Winston Chicago is deafening
did Dechert raise all offices?
Quiz time: which firm still appears on the CA, DC, AND Boston List of Shame???
Atlanta Am Law 100 firms: Hear that loud sucking sound?
That's the sound of resumes flying out of your buildings to DC firms that are about to poach your top talent. No, they can't absorb us all, but they are happy to take your best. You think the head hunters are not all over this? Wake the f up already.
Munger has matched retroactive to 5/1.
if Winston didn't raise in Chicago, that's complete bush league
Where is Jenner??????????
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc
Hey Fat Twat...
So let me get this straight, after you got back home for drinks with your gorgeous wife, you decided to check what was going on on ATL and let us know what your plans for the evening were? Before actually jsut carrying on with them already?
Must be a PI plaintiff's attorney... loves writing stories.
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc
seyfarth shaw is still at 145k all office except nyc