Back in February, we wrote about various compensation developments over at Pillsbury Winthrop. At the time, the firm said it was considering moving away from a lockstep model in favor of a more performance-based compensation system.
The firm has not yet killed killed lockstep — a move that has historically generated mixed to negative reviews from associates at other firms. Instead, it has done something that has proven much more popular.
Last month, the Pillsbury dough boy baked up some delicious-smelling pay raises. Nothin’ says lovin’ like money from the oven!
Our recent Career Center survey asked about starting salaries and annual salary increases at firms across the country. Over 70% of respondents indicated that their firms increase salaries during the traditional month of January. About 8% percent of respondents, including associates at this Midwestern firm, see their salary increase in February. Another 9%, including associates at thesetwo global firms, get raises in March. The remaining 12% of respondents indicated that their annual raises come at some later point in the year.
Check out the full survey results after the jump — and visit the Career Center, powered by Lateral Link , for more on changing compensation practices at firms across the country. If you are an employer seeking more detailed information on firm salary scales please contact T.J. Duane at email@example.com.
Nixon Peabody is one of the firms that has moved towards a merit-based pay structure. The firm also cut starting salaries down to $145K a year ago. So you’d think that any information on a Nixon Peabody salary raise would be greeted favorably.
Not so much. A tipster tells us:
I can confirm that I received a raise. I can confirm that it sucks. Anything else?
Oh boy, that doesn’t sound good. Is anybody feeling like a winner at Nixon Peabody?
With all the salary freezes, thaws and permanent meltdowns over the past year, it’s hard to keep track of what associates at law firms are actually making these days. And associates are learning that an annual lock-step raise is no longer a sure thing under new compensation systems at many firms.
This week our ATL / Lateral Link survey asks about starting salaries and annual salary increases at your firm. We’ll use the information to update the ATL Career Center and bring you the results next week.
If you have information about your firm that you want to share with other career center users, please email us at firstname.lastname@example.org.
Last June, we reported that Howrey decided to make a big change to the law firm business model. The firm cut first year starting salaries to $100,000. In exchange, the first year program would involve a heavy emphasis on training. Associate billables would be capped at 700 hours and Howrey reduced the rates charged to clients for first year work. The low-salary/training emphasis carried on into the second year.
Life outside of lockstep is like Forrest Gump’s box of chocolates: you never know what you’re going to get. A lockstep system for compensating and promoting associates has its drawbacks, to be sure. But at least it offers the virtues of transparency and predictability.
Earlier this week, we covered the arguably amorphous definition of “merit” at WilmerHale, one of several leading law firms to abandon lockstep. Today we turn our attention to Winston & Strawn, another prominent firm that has moved to a more “merit-based” system of compensation.
Back in February, we described Winston’s compensation scheme not as a box of chocolates — that would be sweet and delicious! — but as a black box. Among associates, nobody really knows what anyone else is making. As stated in the firm memo, “Individual associate salaries will be determined on a case by case basis based on seniority, performance and productivity factors and will be communicated separately to each associate.”
We now have a better sense of what’s going on at Winston, thanks to the recent release of individualized salary info (and some comparing of notes among Winston associates). And not everyone is happy….
Other Biglaw firms that moved away from lockstep would not follow DLA down the salary rabbit hole.
Now, DLA Piper has given it up its quest to drive down associate salaries. The National Law Journal reports:
DLA Piper is raising associate pay by 10 percent, in a move that will return compensation to their levels before the economic downturn.
A memo released to attorneys on Thursday by firm leaders announced midyear pay increases in offices outside New York. DLA Piper raised salaries in New York in January to pre-recession levels of $160,000 for first-year associates.
Welcome back to the pack, DLA? Tipsters report that the firm is not quite there yet…
Well, it’s about time. On April 13th, a small claims court in Florida will deal with a case where an associate is suing his former law firm over allegedly deferred compensation. Only $2,000 is at issue, but this is a battle of principle. The Daily Business Review (subscription) sets it up:
The salary deferral imposed by [Becker & Poliakoff] in May 2008 was temporary and necessary in order to avoid layoffs during the economic downturn, managing partner Alan Becker said….
Former Becker associate Richard Valuntas sued the firm last August, alleging Becker committed breach of contract and fraudulent misrepresentation by refusing to repay him the 12 percent deducted from his paycheck for several months. He also alleges Becker’s deferrals violated its own employment contract and policy manual.
You see, the firm promised restitution of the salary cut, and they did eliminate the cut in August of 2008 and gave associates make-whole payments. But only associates still at the firm received full restitution. Valuntas left Becker that August and apparently missed out on one of these restitution paychecks.
Despite the small amount of money involved, both litigants are going to the mattresses…
During the recession, Mintz Levin froze associate salaries and deferred 2009 summer associates all the way until 2012. Not good times.
But the recession is starting to lift its death grip on law firms and the lawyers who work there, and Mintz Levin is in the mood to share the wealth. We spoke with Mintz Levin Managing Partner Robert Bodian today. He told us that the firm enjoyed a strong fiscal year — which ended this past Saturday:
Revenue and profits per partner were up around 3% [last year].
He said that work was picking up and the second half of last year was good for the firm.
Which means it’s time to give some money back to the hard working Mintz Levin associates…
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Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: email@example.com.
Please note that Evan Jowers and Robert Kinney are still in Hong Kong and will stay FOR THE REMAINDER OF THIS WEEK. We still have a handful of available slots for meetings with our Asia Chronicles fans. If we have not been in touch lately, reach out and let us know when we could meet! There is no need for an agenda at all. Most of our in-person meetings on these trips are with folks who understand that improving a legal practice through lateral hiring is an information-driven process that takes time to handle correctly.
Regarding trends in lateral US associate hiring in Hong Kong, we of course keep much of what we know off of this blog. Based on placement revenue, though, Kinney is having one of our most successful years ever in Asia. We are helping a number of our law firm clients with M&A, fund formation, cap markets, project finance, FCPA and disputes openings. These are very specific needs in many cases, so a conversation with us before jumping in may be helpful. As always, we like to be sure to get the maximum number of interviews per submission, using a well-informed, highly targeted, and selective approach, taking into account short, medium and long-term career aims.
Making a well informed decision during a job search is easier said than done – the information we provide comes from 10 years of being the market leader in US attorney placements at the top tier firms in Asia. There is no substitute for having known a hiring partner since he/she was an associate or for having helped a partner grow his or her practice from zip to zooming, and this is happily where we stand today – with years of background information on just about every relevant person in all the markets we serve, and most especially in Hong Kong/China/Greater Asia. So get in touch and get a download from us this week if we can fit it in, or soon in any case!