Back on Wednesday, we reported that Howrey LLP plans to chuck lockstep compensation for its associates. Starting in 2008, the firm will employ a “competency model,” in which it would “determine salary based on individual evaluations and various forms of progress indicators.”
Today our scoop was picked up by The Recorder (and then by the WSJ Law Blog). From The Recorder:
In a radical departure from the status quo, Howrey is getting rid of lockstep compensation for its associates….
While Howrey first-years will start at the market rate — the firm recently raised them to $160,000 — all other associates will advance through different levels based on personal evaluations instead of seniority. Each level has a salary range, and [partner Henry] Bunsow said top performers would be paid more than market, while some could make less.
“The goal is not to have associates make less than their counterparts at other firms,” Bunsow said. “If poor performers can get a better deal somewhere else, that may be a marketplace reality — we would hope that this system wouldn’t promote that.”
“The goal is not to have associates make less than their counterparts at other firms” — sounds a bit defensive, but whatever.
This system will be highly customized, but complicated:
The evaluations will be based on performance and experience, which could shorten the partnership track for some and lengthen it for others. Since Howrey is a litigation-focused firm, factors like writing, deposition, trial practice and client presentation skills will be considered, Bunsow said. Although there will be bonuses based on hours, that will be just one of many considerations in the evaluation, he added….
Associates will be assigned to partners who will be responsible for their development and their individual evaluations. A full-time staff person will be hired to oversee the program and to make sure that associates feel they are being treated fairly, Bunsow said.
Okay, we’re getting a headache. This sounds like the brainchild of a Soviet bureaucrat.
And this is just the simplified version. If you’re interested in the dirty details, an internal Howrey email — which includes mention of a “Competency Czar” — appears after the jump.
Continue reading “Nationwide Pay Raise Watch: More About the Howrey Weirdness”