Associate Bonus Watch 2007

Associate Bonus Watch: More MSM Coverage

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While you wait for more announcements to trickle in, check out the latest news article about associate bonus season. It’s by Joseph Goldstein of the New York Sun, who writes (after describing the Cravath special bonus announcement and subsequent matching):

The announcement suggests that the darkening economic landscape isn’t causing too much concern that there will be a significant decrease in billable hours. And legal recruiters say the bonuses, which exceed last year’s, are a signal that the next pay increase for associates could come as soon as January, the month when law firms generally announce any raise in base associate salaries. The gloomier interpretation — that these early and generous bonuses are meant to ward off a salary war next year — has few adherents.

“That’s just speculation,” a recruiter, Jack Zaremski of Hanover Legal Personnel Services, said. “My instinct would be the opposite. This is an indication that firms would be interested in taking base compensation to the next level as well.”

Interesting. It is worth noting that Simpson’s raise from $145,000 to $160,000, and S&C’s raise from $125,000 to $145,000 before that, were announced in January 2007 and January 2006, respectively.

[T]he $160,000 figure, still less than a year old, may not last for much longer. It has already spread to other cities across the country, causing discontent among associates here who contend with New York’s higher cost of living.

That parity between associate pay here and elsewhere “can’t last long” a professor at Columbia Law School, John Coffee, said. ” It’s natural that New York will distance itself from the national salary scale. There will be some jockeying among the firms to see who can lead the race.”

So could we see NY to 190 (or maybe 175 or 180) in the not-too-distant future? Stay tuned — but don’t expect Wal-Mart to be happy about it.
P.S. We thank Mr. Goldstein for the ATL shout-out.
Law Firms Racing To Boast Best Pay for Associates [New York Sun]

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