A Look At Associate Compensation In The 1990s
How much did Biglaw associates earn back in the 1990s?
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….
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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.
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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!
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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