Associate Salaries, Biglaw, Money

Could A 5th-Year Make Less Than A 3rd-Year? Maybe, According To This Firm!

This firm "was successful in making associates more angry than if it had done nothing -- worse than expected."

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angry manWe’ve seen some screwy compensation regimes over the last month — almost always at the expense of senior lawyers (older associates or counsel) — but this one really takes the cake. After a few appearances in our “Angry Associates” round-ups, Venable has finally announced raises and their system surely leaves a lot of irate seniors in its wake.

Reactions like this one:

Venable had its associate firm meeting. Venable was successful in making associates more angry than if it had done nothing — worse than expected.

Let’s hear from another tipster:

Lockstep for the first 3 years:
1Y – $180K
2Y – $190K
3Y – $210K

So far so good… that’s a complete Cravath match.

Now here’s where it gets complicated. Venable has the Reed Smith discretionary pay scale, with a bottom and top range for every year.

This year, all they announced were the changes to the top of the scale for each year, intentionally ignoring the bottom of the scale (despite repeated questions about it).
The only answer they were willing to give is that the bottom scale will also “move,” but not proportionally to the movement to top of the scale.

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Now let’s break this down. Charitably, we could say that they came in jazzed about the top of the range movement and simply weren’t prepared to discuss the bottom. But cynically, how do you prepare for a meeting on compensation knowing you pay based on a range without bringing pinpoint accurate answers on a question that’s OBVIOUSLY GOING TO COME UP?

Well, what would be the range assuming no movement from the status quo floors…

4Y – $185K – $230K
5Y – $200K – $250K
6Y – $210K – $270K
7Y – $205K – $285K [Ed. note: We think the floor is supposed to be “$215K”]
8Y – $230K – $300K

And there it is. Fourth- and fifth-years could find themselves making less than the third-years (and depending on that seventh band, a seventh-year could be in a bind too). That’s astounding. I don’t think seniors have felt this kind of frustration with their younglings since Anakin Skywalker.

Also, bear in mind that Venable’s intent is to pay associates in the middle of these bands so it’s not fair to judge how far off they are based on the top number.

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Venable has never been lockstep — and wants to continue evaluating us on “our own merits”. Venable has decided to continue with their pay bands where every year is assigned a pay band range and given the median pay for each band. However, they are only telling us the new high end of each band for now. We do not get to see the low or median until January!!! They admitted when asked that the low end and median pay is not going to go up pro rata. So basically no one knows what the hell is going on…. Only that some super associate has the possibility on their best day of making x dollars in January — which still is not the new market.

So… consulting my handy chart, it looks like Venable should prepare for a lateral market raid in January.

Until then, congratulations to the youngest of associates! Maybe you can spare some change for your mentors.

Remember, when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches Cravath”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.

Earlier: No, You Are Not Matching The Market: 1st Years To $180K Doesn’t Tell The Whole Story
What’s Up With Counsel Salaries?
Angry Associates Ask ‘Where’s My Money?’
The Comprehensive Partner’s Guide To Associate Raises

Joe Patrice is an editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.

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