We did a post on associate salaries in the Texas markets last month. But since a number of you have been clamoring for another, and we haven’t done one as part of our recent series on various non-New York markets, here’s another post going out to the Lone Star State.
In our last Texas post, we included some starting salary information for various Texas offices. Today we’re going with a different theme: compression. From a Texas tipster:
Leaving aside the fact that the large Texas-based firms (and many national firms with large Texas presences) are playing a game of petrified chicken on the latest round of raises, I have seen no coverage at all on the massive compression resulting from the last round of raises. These firms at issue are some biggies: Baker Botts, Vinson & Elkins, Akin Gump, Fulbright, etc.
Here’s how it worked after last year’s round of national raises: First years in Texas got a big increase, from about $110k to $135k. 2nd and 3rd years also got around a $15k increase. And that’s pretty much where it stopped. 7th years received a $5,000 raise, to about a $185,000 base. To put that in perspective, it’s about 50% less than a 7th year currently makes (at the same firm or a national that pays a uniform scale) in LA, NYC, DC, etc. That is, a 7th year at BB in Texas makes $185,000; a 7th year at BB in NYC makes $275,000. Sheeeeeit! And don’t look for explanations in billing rates. The vast majority of work done in Texas by these firms is billed at national rates — the same charged in DC and LA (though maybe 10% less than in NYC).
The point: screw the first years! They now make only $50,000 less than the folks up for partner. Not that partnership chances have increased.
Counting on you to get the ball rolling!
Franky, relatively broke and senior in Texas
Feel free to bitch and moan — or, if you’re not from Texas, to remind them that they pay no state income tax and have a relatively low cost of living — in the comments. Thanks.
Earlier: Nationwide Pay Raise Watch: Unhappy, Texas