Nationwide Pay Raise Watch: Stroock, Reed Smith, Sonnenschein
A few more news items concerning associate compensation:
1. Stroock & Stroock & Lavan: Multiple sources confirm that they've raised salaries in their Los Angeles office. Effective date of June 1; no changes to the bonus structure. The new scale is 160-170-185-195, plus discretionary raises for year 5 and above, who previously were at $200K plus discretionary raises (small, usually $5K a year).In addition, we've learned that the firm pays associates 10 percent of any business they bring in. Do other large law firms have similar policies? Feel free to discuss in the comments.
2. Sonnenschein Nath & Rosenthal LLP: We haven't confirmed this (and their NALP form doesn't reflect it). But according to a memo posted in the comments, the firm is "increasing starting salaries in our Chicago, Los Angeles, San Francisco, Silicon Valley and Washington, DC offices to $160,000. We will be adjusting salaries for all other associate classes in these offices effective July 1, 2007 to take into account the increase in the starting salary."
3. Reed Smith LLP: Also not confirmed. But according to a memo posted in the comments, the firm "ha[s] decided to increase our starting salary for first year associates in California, Chicago, and Washington, D.C. to $160,000 effective January 1, 2008. In addition, we will accelerate to January 1, 2008 the implementation of the previously announced increase to $145,000 in Philadelphia/Wilmington."
The firm has also made changes to its bonus program: "In addition to the current bonus thresholds, we will make further payments of $5,000 at each of 2000 and 2100 chargeable hours and $10,000 at 2300 chargeable hours. This means, for example, that associates with 2300 chargeable hours for 2007 will earn additional bonuses of $20,000."
If you can confirm the Sonnenschein or Reed Smith news, or if you have additional info to share, please drop us a line. Thanks.
(68) Comments
Way to go Sonnenschein and Reed Smith. Now only if Vedder and Jones Day can jump on the Chicago band wagon.
Removing Sonnenschein, Schiff, and Reed Smith (even though that last one didn't do lockstep raises):
Continuing CA List of Shame:
1) Thelen Reid*
2) Bingham
3) Perkins Coie
4) Bryan Cave
5) Townsend*
6) Baker & McKenzie
7) Seyfarth Shaw
8) Foley
9) Greenberg Traurig
10) Holland & Knight
* denotes CA-based firm
portsmouth, portsmouth, portsmouth, portsmouth...WAKE UP...
WWRLD?
The recruiter in our firm was talking the career dev. person at a law school recently, and evidently car washers in No. Cal. are going to $10.25 for sure.
I wonder if this means NY will have to go to $13.25?
Reed Smith, come on - the raise doesn't go into effect until January of '08? Is that some sort of joke? Pay the man his money!
It's not a joke, it's just cheap.
whatever happened with the crazy 2 am email from the Stroock dude?
*goes bowling*
Lat -- What about Seyfarth? They love being on the list of shame until the last minute...
Can someone explain how the Stroock rule that Associates keep 10% of business they bring in works?
Is this 10% for a period of time or 10% in perpetuity?
Yeah, no kidding - I also want an update on the Stroock crazy guy.
Anyone have a current DC list of shame?
Has anyone else heard the rumor that there was a Baker announcement today?
5:34 - yes, bagels were 3 for a dollar instead of 2 for a dollar today.
Yes, Baker announced ealier today it was hired by the car washer's union in Texas to help raise Houston car washer wages to $10.25. No. Cal. and Madhattan are going to have to go to $13.25.
For any WSGR associates or insiders-
Kind of off topic, but does anybody know how much WSInvestments typically adds to a WSGR associate's compensation? I know WSGR has basically axed their 1900 hours bonus, but will the WSInvestments returns be likely to help mitigate that?
legal pad says bingham is matching: http://legalpad.typepad.com/my_weblog/2007/06/end_the_bingham.html
that would mean bingham would raise to 160 in hartford and portland too?
Removing Bingham because of 5:48, which puts Thelen Reid as the highest on the Cal Law 25 not to pay up:
Continuing CA List of Shame:
1) Thelen Reid*
2) Perkins Coie
3) Bryan Cave
4) Townsend*
5) Baker & McKenzie
6) Seyfarth Shaw
7) Foley
8) Greenberg Traurig
9) Holland & Knight
* denotes CA-based firm
No. Cal. List of Shame:
1) Bob's House of Car Washes*
2) Freaky Eddie's Fast Car Wash*
3) Mission Car Wash*
4) Sud's and Bud's Car Wash*
5) Red's Car Wash*
6) Mannie's Super Clean Car Wash*
* denotes No. CA-based Car Wash
Add AAAAdvantage Car Wash to the list of shame. Those bastards haven't matched past 5th year!
No. Cal. List of Shame:
1) Bob's House of Car Washes*
2) Freaky Eddie's Fast Car Wash*
3) Mission Car Wash*
4) Sud's and Bud's Car Wash*
5) Red's Car Wash*
6) Mannie's Super Clean Car Wash*
7) AAAAdvantage Car Wash*
* denotes No. CA-based car wash
Wiley Rein: $4MM+ PPP last year...where's $160K?
Well it evidently didn't end up in the pockets of the car wash workers, look at this list of shame.
I heard that Sud's and Bud's is paying $10.25 for drying off 80 cars per day, but the 100 cars per day track is up to $12.75. Memo anyone?
Do the 100 car track people get to move up to vacuum duty a month or two ahead of the 80 car track people?
Can any Bostonites on here confirm Foley Hoag to 160? Makes Bingham look even worse if true.
Bingham matched today (effective June 1). But it looks like they didn't make many friends in their associate ranks in the process.
BTW, New York people, a "car wash" is where you take an "automobile," when it needs to be cleaned from "driving," it around.
No evidence Bingham has actually matched. 5:48pm's legapad link simply claims a spokesperson said so.
No name, no link, no official document.
I call bullsh*t.
Put Bingham back on the list of shame!
As you are all aware, during the past several weeks there has been significant market activity related to associate and counsel compensation at major law firms across the country. That activity has varied greatly in the local markets where we have the greatest number of lawyers. Although we have a policy of remaining competitive with our peer firms in our local markets in terms of attorney compensation, we make these types of firmwide decisions with extreme care and always with a view toward attracting and retaining the best legal talent and preserving our unique culture. Among other reasons for a deliberate approach, we also want to avoid the impact that significant salary increases can have on clients. While we will always meet the market, we take all of these other responsibilities seriously. Following careful study, we will be increasing 2007 base compensation in our domestic U.S. offices to match the base compensation structure in our New York office, consistent with the new national market. That base compensation model is as follows:
Class Salary
Class I $160,000
Class II $170,000
Class III $185,000
Class IV $210,000
Class V $230,000
Class VI $250,000
Counsel I $265,000
Counsel II $280,000
Counsel III $290,000
Base increases will be paid to associates and counsel in good standing in the July 6 payroll, retroactive to June 1. Of Counsel compensation will be determined individually.
I want to thank everyone for their patience, since I have been traveling in Asia on business, and just returned to the office yesterday. If you have any questions regarding our new compensation structure, please do not hesitate to contact me or members of the COA leadership / Attorney Development team.
Tony Carbone
212-705-7430
well, that was a PR disaster.
True. They should have gone to 165 as a conciliatory gesture.
All the Vault 100 DC firms still holding at $145 better get to $160 now, or their summers are going to be mocked mercilessly.
Can someone post the Baker Botts memo?
9:04 -- I think they meant Baker & McKenzie, not Baker Botts.
Bingham throws out mid-level associates in San Francisco.
Anyone have more info on this?
9:47, like out the window?
Bingham put an offer out there that if a mid level wanted to resign, they would get a comp package - I don't know how many months of salary they ended up getting. I believe more associates took them up on it then they expected and they had to establish a deadline for acceptance as a result. They lost at least four or five.
Anyone else notice that Reed Smith did not raise in Northern Virginia, so that the associates in DC will be making $25K more per year than their coworkers 10 miles away?
Bingham's hamper of dirty laundry appears bottomless...
Lat,
9:53 says Bingham's hamper of dirty laundy appears bottomless.
Isn't that what this blog is about? Getting the dirty laundry out in the open?
C'mon....let's go, let's shine the light on Bingham and get the juicy details!
9:51 - thanks!
From 9:47.
DC Vault of Shame
(same as before, since Sonnenchein has not been confirmed)
17. William & Connolly
36. King & Spalding
40. Baker Botts
48. Jenner & Block
50. Fulbright & Jaworski
58. Vinson & Elkins
59. Alston & Bird
61. Sonnenchein
64. Holland & Knight
66. Bingham McCutchen
68. Foley & Lardner
70. Hunton & Williams
71. Patton Boggs
74. Kirkpatrick Lockhart
75. Nixon Peabody
77. Bryan Cave
79. Crowell & Moring
86. McGuire Woods
87. Squire Sanders
88. Arent Fox
93. Kilpatrick Stockton
95. Dickstein
96. Venable
9:04 - there is no Baker Botts memo.
i posted the sonnenschein memo earlier
this makes no sense financially. dont we always hear the mantra that firms dont make money off associates until they are mid-levels? and how firms are always trying to stop mid-level attrition for that reason (plus the obvious investment in their training, etc.)?
did bingham put this incentive out to all mid-levels in sf or just 'select' (ie low billing) mid-levels?
Bingham McCutchen Offers Buyouts to Some Associates
Even as the Boston-based firm bumps associate salaries nationwide, it seems to be enticing some associates to leave
Zusha Elinson
The Recorder
June 6, 2007
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While Bingham McCutchen is now paying top dollar to hold on to associates at its offices across the country, in San Francisco the firm seems to be paying top dollar so some of them will leave.
Several mid-level and senior litigation associates have taken a buyout deal from the 1,000-lawyer, Boston-based firm, according to multiple sources inside and outside the firm. Four attorneys recently left the firm, and three traded in their full-time associate status for the part-time title of contract attorney, those sources say.
On Tuesday, the firm raised associate salaries in all offices to the $160,000 scale, following crowds of other large firms that have done the same.
Anthony Carbone, chair of the firm's committee on associates, described the personnel moves in San Francisco as "mutually agreeable transitions" initiated by associates based on their individual situations -- not layoffs initiated by the firm.
"Some things take on a life of their own," said Carbone, a partner in New York. "We didn't have any program; it just happened that we had this number of people. We didn't go up to people and say here's something you should take." Carbone declined to comment on the individual deals or identify those who accepted them, but he said that, in general, agreements like these could include a severance payment.
Although Carbone said there was no one factor that precipitated the departures, lawyers inside and outside the firm said that a slowdown in commercial litigation was to blame. One Bingham associate who did not want to be identified, and who did not leave or get reclassified, called it a "creative solution" in "dealing with the ebb and flow of commercial litigation."
David Balabanian, who heads the firm's litigation practice, said the firm's litigators are doing just fine. In San Francisco, litigators are busy with antitrust cases for clients like Intel, commercial fights like the one between Oracle and SAP, and IP cases for clients like Blockbuster in its battle with Netflix, as well as backdating matters, he said.
Balabanian declined to comment on any personnel matters. "The litigation practice is strong. There are ebbs and flows, so that from time to time some parts are in the ebb or the flow, but that's nothing new," he said. "Our commitment to litigation, that it will remain one of the firm's great pillars, is reflected by our hiring targets, which continue unabated, as well as our recent merger."
The firm recently closed a deal to acquire Los Angeles litigation boutique Alschuler Grossman.
Multiple sources say that as litigation work ebbed, the firm made it known that associates thinking of leaving should talk to management individually.
"There was an opportunity for people to leave who wanted to go," said one lawyer familiar with the situation. "They provided some severance."
"Some people decided to do it, and some people decided not to do it," one Bingham associate said.
Though the firm wouldn't say who may have accepted buyouts, four litigation associates have left in the last month. One of them, Tyler Theis, said he was interviewing for in-house jobs, but declined to comment further. The other three -- Renee Dupree, Farschad Farzan and Vibeke Norgaard -- either declined to comment or couldn't be reached for comment.
Three other associates -- Sivan Gai, Todd Pickles and Edward Donnelly -- were recently reclassified on the firm's Web site as part-time contract lawyers. Gai and Pickles declined to comment publicly, and Donnelly didn't return calls.
No one would say how much severance was offered.
sounds like bingham in sf is falling apart
UPDATED DC VAULT OF SHAME
(with corrected spelling and associate numbers)
anyone care to pair this with a list of DC offices at 160 and their associate #s?
17. Williams & Connolly (129)
36. King & Spalding (66)
40. Baker Botts (65)
48. Jenner & Block (25)
50. Fulbright & Jaworski (38)
58. Vinson & Elkins (46)
59. Alston & Bird (42)
61. Sonnenschein (36)
64. Holland & Knight (68)
66. Bingham McCutchen (70)
68. Foley & Lardner (60)
70. Hunton & Williams (68)
71. Patton Boggs (91)
74. K&L Gates (76)
75. Nixon Peabody (40)
77. Bryan Cave (23)
79. Crowell & Moring (86)
86. McGuire Woods (7)
87. Squire Sanders (17)
88. Arent Fox (86)
93. Kilpatrick Stockton (14)
95. Dickstein (129)
96. Venable (83)
For what it's worth, I've been told Dickstein LA (single digits of associates) was not planning on raises.
http://www.law.com/jsp/article.jsp?id=1181034334553
It looks like Bingham had to find a "creative solution" to deal with its recent announcement to raise associate salaries.
So Greedy Associates is reporting that Dewey has opened a new office in Charlotte starting associates at $160 and that the local Mayer Brown office has followed, but no confirmation. Anyone know if this is true and if anyone else is following?
Sonnenschein has raised - the memo posted earlier is legitimate.
How many of the Vault 100 firms have DC offices? I'm curious about the overall percentage that has bumped to 160.
Second query: Is the cost of living in DC really so much lower than NYC? I mean, setting Manhattan aside... Obviously, it's lower in tiny markets like (shudder) Richmond, but around DC/burbs I'm not so sure.
Ann Ona Miss-
that rumor is true, and Cadwalader and Dechert are supposedly going to 160 in Charlotte September 1 to match.
they also all pay the NY bonuses. and work the NY hours.
Cha
Ann Ona Miss-
The rumor is true. They have to staff the office and it doesn't look like any of the Dechert people want to go with them. I'm not sure about the MB raise (yet) but it was already in the works that Mayer, Dechert and Cadwalader were all moving to 160 in Charlotte on September 1. On top of that, they all pay NY bonuses. Oh, and work NY hours (yes, they really do) and have NY chances of making partner. (CWT has ~100 lawyers and 9 partners)
Lat,
Can the ppl have Charlotte, NC pay thread?
Please don't let people know. They will rush here. Because we (well some of us) are incredibly well compensated for working incredibly reasonable (for a law firm) hours.
Don't let the word get out.
Oops.
Regarding what associates get for bringing on clients, my understanding is that S&C gives you some kind of cut (not sure what percentage), Milbank is negotiable (not sure what the result is), and Paul Hastings doesn't give you shit (I can give you the numbers on that one - 0%, $0).
I heard that some places give budget relief for client development work, but I haven't tracked any down yet.
Really,
My firm gives us a cut. We get "origination credit" in the form of bonuses. It works out pretty well. I still would even recommend against bringing in anything substantial as a first or second year, but as a third I brought someone on that I was holding off and it's working out very well for me.
I have to go play golf now. Enjoy your days.
Speaking of working NY hours with NY chances of making partner (and without NY bonuses), anybody hear any rumblings about Hunton's non-NY offices?
any more chi firm updates?
I find the timing of the "irrelevant" postings on ATL conveniently distracting.
Seems the "carwash, sex, asian, etc." comments started after this site received attention in the more mainstream publications, thus helping associates be heard.
Reminds me of the same technique used by the executive branch.
The poster by the name of “Ralbylove” is in no way associated with the individual named Ian M. Ralby, but is instead an alias created without the consent of Mr. Ralby.
Anyone have info on starting salaries at Lewis Brisbois?
The 10% is basically 10% on collected fees, while you are employed here. And it scales down if the fees are very untimely received. Finally, if you bring in a $50 million dollar client, they have discretion to cap the 10%. Nobody wants an associate who simply kicks back and does nothing but earn her 10%.