Associate Salaries, Back to the Future, Biglaw, Bonuses, Money

A Look At Associate Compensation In The 1990s

How much did Biglaw associates earn back in the 1990s?

By  
on

We’ve been enjoying the occasional trip back in time to look at Biglaw in ages past. In prior Flashback Friday posts, we’ve covered such topics as the most prestigious law firms in 1998 and billable hours in the 1990s.

And, of course, we have covered compensation. We’ve done two posts so far looking at associate comp in the 1990s, in New York and in other cities — Atlanta, Boston, Chicago, Dallas, Houston, and Los Angeles.

Today we’ll close out the series with an overview of associate pay in the remaining markets of Philadelphia, Pittsburgh, San Francisco/Palo Alto, and Washington, D.C….

For complete methodological details and various caveats, look back at our prior post. For now we will just paste in the data on adjusting for inflation, for ease of reference in making conversions:

The salary figures come from one of four years: 1992, 1993, 1996, or 1997. For your reference, according to the Bureau of Labor Statistics’ CPI Inflation Calculator:

  • $1 in 1992 has the same buying power as $1.70 in 2014.
  • $1 in 1993 has the same buying power as $1.65 in 2014.
  • $1 in 1996 has the same buying power as $1.52 in 2014.
  • $1 in 1997 has the same buying power as $1.48 in 2014.

Sponsored

In terms of general observations, we’d reiterate some of our earlier observations:

1. Associate compensation varied a lot more in the past, both by city and by firm within the same city.

2. Merit-based compensation is not new. As you can see below, a number of firms used it back in the 1990s.

3. Firms did some unusual things with compensation — at least unusual by today’s standards. For example, Jones Day in D.C. would “guarantee[] a note for up to $25,000 for the purchase of a home (for associates who have been at the firm for 18 months),” and Steptoe in D.C. would give associates “10% of the revenues generated from any clients they bring in.” (UPDATE (9/8/2014, 9:45 a.m.): A commenter reports that Steptoe still has this policy.) A few firms in 2014 have some form of revenue- or profit-sharing with associates — business-generation credit is how one well-connected Boies Schiller associate wound up with a $300,000 bonus last year — but anecdotally it appears to be not that common today, perhaps because it’s hard for associates to bring in clients that are worth a Biglaw firm’s time (giving the state of billing rates today).

The firm-by-firm stats appear below; feel free to share your own observations in the comments. Thanks!

Sponsored

PHILADELPHIA

Blank Rome

1993: First year $60,000
1997: First year $70,000 plus $5,000 signing bonus

Dechert

1992: First year $65,000
1997: First year $72,000

Drinker Biddle

1992: First year $63,000
1997: First year $72,000; second $75,000; third $78,000-$81,000; fourth $81,000-$87,000; fifth $84,500-$94,000; sixth $88,000-$101,000; seventh $92,000-$109,000; eighth $96,5000-$118,000 (salaries based on performance and merit adjustments)

Duane Morris

1992: First year $62,000
1996: First year $70,000

Morgan Lewis

1992: First year $65,000
1997: First year $73,000

Reed Smith

1992: First year $65,000
1997: First year $70,000

PITTSBURGH

Buchanan Ingersoll

1993: First year $60,000
1997: First year $75,000

Kirkpatrick & Lockhart (now K&L Gates)

1992: First year $65,000 in addition to a $7,000 signing bonus; salary increases are merit based
1997: First year $75,000 plus $5,000 stipend; fourth year $82,500 to $84,500 (plus $0-$7,000 bonus); seventh year $93,000 to $97,500 (plus $0-$7,000 bonus)

Reed Smith

1992: First year $65,000; increases are not lockstep
1996: First year $70,000 plus summer stipend; increases are not lockstep

SAN FRANCISCO / PALO ALTO

Brobeck Phleger & Harrison (now defunct)

1992: First year $65,000
1997: First year $81,000

Cooley

1993: First year $65,000; second $69,000; third $74,000; fourth $80,000
1997: First year $81,000

Fenwick & West

1992: First year $67,000
1997: First year $81,000

Heller Ehrman (now defunct)

1992: First year $65,000; third year onward compensation includes base salary, profit sharing, and possibility of added bonus; fourth $76,500-$83,000; seventh $88,000-$102,000
1997: First year $82,000; second $82,000; third $88,000; fourth $95,000; fifth $101,000; sixth $108,000; seventh $114,000; eighth $122,000

McCutchen Doyle (now Bingham McCutchen)

1993: First year $67,000
1997: First year $81,000

Morrison & Foerster

1992: First year $65,000
1997: First year $81,000

Orrick

1993: First year $67,000
1997: First year $81,000; second $85,000; third $92,000; fourth $97,000; fifth $102,000; sixth $107,000; seventh $112,000; eighth $115,000

Pillsbury Madison & Sutro (now Pillsbury Winthrop)

1992: First year $65,000; annual base salary increments of approximately $5,000; third year onward eligible for bonuses based on seniority and firm’s profits; third year bonus up to $8,000; fourth up to $20,000; fifth up to $20,000; sixth up to $30,000; seventh up to $30,000
1997: First year $81,000

Wilson Sonsini

1993: First year $67,000; second $73,000
1997: First year $85,000 (including guaranteed $4,000 bonus)

WASHINGTON, D.C.

Akin Gump

1993: First year $70,000; second $74,000; third $78,000; fourth $82,000; fifth $86,000; sixth $91,000; seventh $96,000; eighth $101,000
1997: First year $74,000; second $79,000; third $84,000; fourth $90,000

Arnold & Porter

1993: First year $70,000; second $75,000; third $80,000; fourth $85,000; fifth $90,000; sixth $95,000
1997: First year $74,000

Covington

1992: First year $72,000; annual increases of approximately $6,000
1997: First year $74,000; annual increases of approximately $6,000

Crowell & Moring

1992: First year $72,000
1997: First year $74,000

Dickstein Shapiro

1993: First year $70,000; second $74,000; third $78,000; fourth $83,000; fifth $83,000; sixth $88,000; seventh $93,000; eighth $95,000
1997: First year $76,000; second $80,000; third $85,000; fourth $91,000; fifth $98,000; sixth $105,000; seventh $111,000; eighth $119,000

Gibson Dunn

1993: First year $70,000
1997: First year $83,000

Hogan & Hartson

1992: First year $67,000
1996: First year $74,000

Howrey & Simon (now defunct)

1992: First year $70,000; increases in lockstep increments
1997: First year $74,000

Hunton & Williams

1992: First year $68,000
1997: First year $72,000 plus $2,000 settling-in allowance

Jenner & Block

1993: First year $70,000
1997: First year $73,000; second $78,000; third $84,000; fourth $90,000; fifth $98,000; sixth $106,000; seventh $115,000

Jones Day

1992: First year $75,000; firm guarantees a note for up to $25,000 for the purchase of a home (for associates who have been at the firm for 18 months)
1997: First year $84,000

Kirkland & Ellis

1992: First year $70,000
1997: First year $73,000

Patton Boggs

1993: First year $70,000; salary increases in $4,000 annual increments
1996: First year $74,000

Sidley Austin

1993: First year $70,000; salaries increase in lockstep for the first two years after which time increases depend on merit
1997: First year $73,000

Skadden Arps

1992: First year $81,000; second $85,000; third $89,000; seventh $150,000
1997: First year $87,500

Steptoe & Johnson

1993: First year $72,000; salary increases in $5,000 increments; associates receive 10% of the revenues generated from any clients they bring in
1997: First year $74,000; second $79,000; third $84,000; fourth $89,000; fifth $94,000; sixth $99,000; seventh $104,000; eighth $109,000

Venable

1992: First year $65,000
1996: First year $70,000

Williams & Connolly

1992: First year $77,500
1996: First year $81,000; second $86,000; third $94,000; fourth $100,000; fifth $107,000; sixth $115,000; seventh $123,000; eighth $131,000

Wilmer Cutler (now WilmerHale)

1992: First year $72,000; second $72,000; third $78,000; fourth $84,000; fifth $90,000
1997: First year $74,000; second $80,000; third $86,000; fourth $94,000; fifth $100,000

Earlier: Flashback Friday: A Look At Associate Compensation In The 1990s (Part 2)
Flashback Friday: A Look At Associate Compensation In The 1990s (Part 1)
Flashback Friday: The Nation’s 15 Most Prestigious Law Firms — In 2008 And 1998

Bonus Time

Enter your email address to sign up for ATL's Bonus & Salary Increase Alerts.

Topics

, , , , , , , , , , ,