Sullivan & Cromwell has followed suit. It has tried to distract everyone from the train wreck called Charney v. S&C just announced raises in base salaries for its associates. And its 2007 summer associates will share in the loot, too.
Here’s the memo, from firm chairman H. Rodgin Cohen, which was just sent out by email:
SULLIVAN & CROMWELL LLP
From: Cohen, H. Rodgin
Sent: Tuesday, January 23, 2007 3:59 PM
To: *Associates.Worldwide
Cc: Shenker, Joseph
Subject:
We are pleased to announce that, in addition to the bonuses awarded to lawyers at the end of last year, which ranged from $30,000 for the class of 2005 to $70,000 for the class of 1998, the Firm will be increasing associate compensation retroactive to January 1, 2007.
The new salary range will start at $160,000 for the class of 2006 and move up to $310,000 for the class of 1998. In accordance with our usual practice, each associate will receive individual notification of her or his salary.
In addition, annual base compensation will be increased to $160,000 for new associates arriving with the 2007 incoming class. The weekly compensation for the 2007 summer associate class will also be increased to be based on the new starting annual salary of $160,000.
The Firm is committed to rewarding our lawyers for their contributions to our continued success by maintaining compensation levels, including year-end bonuses, at the forefront of peer firm compensation.
Rodge
Update: According to this comment, the compensation figures for S&C’s most senior classes are as follows: class of 2000, $270K; class of 1999, $290K; and class of 1998, $310K. These amounts are higher than Simpson Thacher’s: class of 2000, $265K; class of 1999, $280K; and class of 1998, $290K.
Earlier: Previous announcements of law firm associate salary increases (scroll down through “Skaddenfreude” archives)
David Lat
Posts by David Lat
Thanks to everyone who sent this to us — and sorry for the delay in posting it. Here’s the CWT memorandum announcing pay raises for its associates.
CADWALADER, WICKERSHAM & TAFT
From: Link, Robert
Sent: Tuesday, January 23, 2007 3:26 PM
To: MAIL-NY_ASSOCIATES; MAIL-DC_ASSOCIATES
Cc: MAIL-NY_PARTNERS; MAIL-NY_COUNSEL; MAIL-DC_PARTNERS; MAIL-DC_COUNSEL; Freeman, Claudia; Ellis, Patricia; Wallsh, Mitch; Sekler, Mitchel; Pinkerton, Dyana
Subject: 2007 Compensation
In keeping with our pledge to provide compensation that is competitive with the other leading law firms in our markets, we will increase associate base salaries in New York and Washington effective January 1, 2007 as follows:
Class of 2006 – $160,000
Class of 2005 – $170,000
Class of 2004 – $185,000
Class of 2003 – $210,000
Class of 2002 – $230,000
Class of 2001 – $250,000
Class of 2000 – $265,000
Class of 1999 – $280,000
We are also raising the base salary for the members of the Class of 2007, who will arrive in the fall, to $160,000. Thank you for your hard work and efforts on behalf of the firm.
Earlier: Previous announcements of law firm associate salary increases (scroll down through “Skaddenfreude” archives)
That’s what a number of you said in comments.
And then we were emailed this memo (which we have verified with multiple sources at Paul Weiss, so we vouch for it 100 percent):
PAUL WEISS RIFKIND WHARTON & GARRISON
We are pleased to announce that we have increased associate compensation effective January 1, 2007 as follows:
Class / 2007 Base Salary
2006: $160,000
2005: $170,000
2004: $185,000
2003: $210,000
2002: $230,000
2001: $250,000
2000: $265,000
1999: $280,000
1998 and senior: $290,000
We are very appreciative of your hard work and dedication. The increases will be reflected in your February 15, 2007 paycheck. We expect to determine the bonus portion of your 2007 compensation near year-end as usual.
*****************************
As you can see, these numbers are completely consistent with the new base salaries announced yesterday by Simpson Thacher. Any firm that wants to play in the same league as PW and STB will have to ante up.
Congratulations to the Paul Weiss and Simpson Thacher folks!
Earlier: Breaking: Simpson Thacher Raises Associate Base Salaries!!!
Skaddenfreude: Who Has Matched Simpson?
- Celebrities, Margaret Carlson, Media and Journalism, Movies, Parties, Pictures, Seth Waxman, Stephen Breyer, Television, The Week Magazine
Movie Night With Justice Breyer (Part 1)
By David Lat
Poor Justice Breyer — he’s totally trapped! (But nice necktie, Your Honor. Is it Hermes?)
Supreme Court justices: They’re just like us. They get cornered at cocktail parties by matronly women they don’t really know.
And no, that’s not Beverly D’Angelo, aka Barbara “Babs” Miller of Entourage. We wish.
But yes, that is the Washington Post’s Dan Froomkin — FROOMKIN!!! — over her shoulder, on the far right.
*****************************
Last week, we attended a movie night with Justice Stephen G. Breyer, sponsored by The Week magazine. It was held at the Phillips Collection, an amazing modern art museum here in Washington, DC. We were treated to cocktails and dinner, followed by a screening of The Third Man — Justice Breyer’s cinematic selection.
Photographs, plus brief commentary, after the jump.
Yesterday’s big story, which has carried over into today, is the associate pay raise by Simpson Thacher & Bartlett. Right now everyone is wondering: Which firms will match?
A digression: We’re having one of those days. We woke up late, not feeling that great, and wondering if Shanetta Cutlar had hexed us. So we apologize in advance — we’re not firing on all cylinders today.
Since we’re feeling out of it today, we’re going to begin our pay raise coverage by simply highlighting the most interesting reader comments on this news. There have been over 150 comments so far, and we’re guessing that you haven’t had the time to read through all of them.
That’s what we’re here for. We have sifted through all of your comments. And we’ve collected the most interesting, thoughtful, or funny ones, after the jump.
Continue reading “Skaddenfreude: Your Comments on the Simpson Raise (Part 1)”
Amidst all of the hoopla over associate pay raises and Charney v. Sullivan & Cromwell, some of you have requested updates about Shanetta Y. Cutlar. We’re happy to report that we have some new material for you.
(For those of you who are new to ATL, Shanetta Cutlar is the deliciously imperious, ruler-wielding diva who heads the Special Litigation Section, in the Justice Department’s Civil Rights Division. To get a sense of Shanetta Cutlar, in case you haven’t read our prior coverage of her, see here, here, or here.)
We hope that Shanetta Cutlar has been pleased by our coverage of her — ’cause if she’s not, she might put a curse on us. Here’s the latest tip about her:
Those who worship together, work together. Principal Deputy Tammie Gregg, who was promoted by Shanetta, as well as the Supervisor of the Investigators, whom Shanetta refers to as her “spiritual advisor,” all attend the same Church. Both were promoted over others more experienced than they, and obviously for their personal connection to Shanetta.
Shanetta is very superstitious. She had her office “excised” of evil spirits and ill will toward her, as evidenced by the cross etched faintly, in some sort of oil, on the upper right hand corner of her door. Most recently, an escapee [from the Section] said she told them that she was “gathering her protections.”
“Gathering her protections”? Boy are we f***ed.
(But not as much as Ty Clevenger, the whistleblower who first brought Shanetta Cutlar to the public eye. We hear that Shanetta has a voodoo doll of him in her desk drawer, which she abuses regularly with a staple gun.)
Earlier: Prior coverage of the Special Litigation Section under Shanetta Cutlar (scroll down)
- Aaron Charney, Alexandra Korry, Biglaw, Eric Krautheimer, Gay, Law Professors, Media and Journalism, Plaintiffs Firms, Pro Se Litigants, Sullivan & Cromwell
Charney v. Sullivan & Cromwell: Morning Newswrap
By David LatWe’ll get back to the subject of pay raises for law firm associates in a minute. For now, here’s a quick update on the other story that Biglaw is abuzz about: Charney v. Sullivan & Cromwell, the case filed against S&C by associate Aaron Charney, alleging anti-gay discrimination and retaliation.
We’re monitoring coverage of this lawsuit through a news feed. Here are links to, and excerpts from, the latest stories:
1. Maple Grief [TheLawyer.com]
[O]ne charge [in the Charney Complaint] strikes [us] as particularly heinous. And that is that partners at the firm said the prevailing attitude internally was that “S&C considers all Canadians to be irrelevant”.
Given that the firm’s M&A lawyers spent most of last year defending Canadian nickel producer Inco on a £9.3bn hostile bid, we would be keen to hear Sullivan’s arguments played out in a tribunal.
2. Fake-Lawyer Jokes Better Than Real-Lawyer Jokes [New York Magazine / Daily Intelligencer]
A very brief mention — but with a shout-out to ATL:
Aaron Charney, the gay associate suing his former firm for discrimination, hasn’t gotten the support he expected from New York’s Lesbian and Gay Law Association. [Above the Law]
3. The Tough Road Ahead in the Lawsuit against S&C for Anti-Gay Discrimination: The Plain Truth about Plaintiffs [FindLaw]
Those of you who have been hungering for a dissection of Aaron Charney’s case by an employment lawyer will appreciate this excellent article. It’s by Professor Scott Moss, who teaches employment discrimination law at Marquette. Before entering academia, he practiced plaintiff-side employment law for several years, at Outten & Golden LLP in New York City.
It’s quite interesting. Highlights and our commentary, after the jump.
Continue reading “Charney v. Sullivan & Cromwell: Morning Newswrap”
Simpson Thacher & Barlett has raised associate base salaries, as set forth in this memo. Entering associates will now earn a starting salary of $160,000 rather than $145,000.
We reported on this earlier today, but you don’t have to take our word for it. The WSJ Law Blog also has the news, plus some banal on-the-record comments from Pete Ruegger (who didn’t bother returning our telephone calls or email messages).
As for which other law firms have or haven’t matched STB, all kinds of rumors are flying around, including many in the comments to our earlier post. Some of you have expressed irritation over not knowing what to believe.
Our response is simple: Don’t rely upon anything until it’s confirmed here, on ATL’s main page (as opposed to the comments — which we love, but which can be unreliable).
Over the next few days, we will follow up on the different rumors about raises. We will gather announcement memos from the various firms, obtain confirmation from friends that we know to actually work at these places, and collect statements from firm partners and spokespersons. Then we’ll report back to you on what we’ve learned.
But we’re not expecting any surprises out of this process. We think it’s only a matter of time before most top New York firms fall in line. (But we don’t know what will happen nationally — $160K for first-years may not be sustainable outside Gotham.)
So if you work at a Biglaw shop in New York, at a firm that considers itself a peer to Simpson Thacher, just relax. You will surely get your extra dough.
Simpson Thacher Raises the Bar [WSJ Law Blog]
Earlier: Breaking: Simpson Thacher Raises Associate Base Salaries!!!
Simpson Thacher & Bartlett has raised associate base salaries across the board. For the most junior classes, the increase is $15,000. New associates arriving at the firm in the fall will now receive a starting salary of $160,000, instead of $145,000.
(You saw the memorandum here first, people — less than ten minutes after it was sent. MSM sources: PLEASE CREDIT ABOVE THE LAW. Thank you.)
The Simpson Thacher memo reprinted below was emailed to us by multiple sources. So we do not doubt its authenticity. It was sent out today by email, at 4:28 PM, by STB executive committee chairman Philip T. (Pete) Ruegger III, to all associates and non-senior counsel.
We are seeking additional comment from STB representatives — namely, Pete Ruegger, who sent the memo, and Susan Bussy, who handles media inquiries. We will let you know if and when we hear back from them.
Without further ado, the memo:
SIMPSON THACHER & BARTLETT LLP
MEMORANDUM TO ALL ASSOCIATES AND COUNSEL
The Firm has been very busy and we expect the high level of activity to continue. We are proud of the results we are helping our clients achieve.
We believe we have the finest legal team of any global law firm. In appreciation of your efforts, we are pleased to increase associate base salaries as follows, effective January 1, 2007:
Class of 2006 – $160,000
Class of 2005 – $170,000
Class of 2004 – $185,000
Class of 2003 – $210,000
Class of 2002 – $230,000
Class of 2001 – $250,000
Class of 2000 – $265,000
Class of 1999 – $280,000
Class of 1998 – $290,000
We are also raising the base salary for the members of the Class of 2007, who will arrive in the fall, to $160,000.
Counsel and classes senior to 1998 will be addressed on an individual basis.
Again, on behalf of the Firm, thank you for your commitment and hard work.
January 22, 2007
Pete Ruegger
*************************
Other firms will surely follow suit and match this base salary increase. As the various firms match, please note their moves in the comments. THANKS!!!
Today’s New York Times has an interesting article on Brian Valery, the bestest paralegal ever. The article may actually say less about Valery and more about the general uselessness of junior associates. Consider this:
Steven Maass, who hired Mr. Valery’s former law firm, Anderson Kill & Olick, after Mr. Maass’s electronic trading business was destroyed in the Sept. 11 terrorist attack, thought Mr. Valery unimpressive but chalked it up to inexperience.
“All first- and second-year attorneys are pretty terrible,” Mr. Maass wrote in a recent exchange of e-mail messages.
True enough — even though you’re paying several hundred dollars an hour for that awfulness. In Valery’s case, he was billed out at $300 per hour. Anderson Kill is in the process of negotiating financial settlements with about 50 former “clients” of Valery.
What should be frightening to defenders of the monopoly that bar-admitted lawyers have upon the provision of legal services is that Valery, despite never having attended law school or taken the bar, didn’t do that badly for himself. Maass found him to be no more useless than the typical junior associate. And Anderson Kill has not yet had any clients come forward to claim that Valery screwed up their cases. (Of course, given how little responsibility junior associates are given, perhaps that’s not surprising.)
Some food for thought:
Connecticut authorities debated what Mr. Dubois called the “metaphysical question” of whether they could even disbar someone who was never a lawyer and had only temporary privileges to practice in the state. They decided they could, and should, to keep other states from issuing privileges based on the faulty Connecticut credentials.
Anderson Kill’s chairman, Jeffrey L. Glatzer, euphemistically refers to the Valery episode as “the unfortunate incident.” Not bad. But if it were up to us, we would have gone with “The Late Unpleasantness,” “That Not-So-Fresh Feeling in the Legal Briefs,” or “The Smell of Napalm in the Document Room.”
Case of the Paralegal Who Played a Lawyer Raises Many Questions [New York Times]
Earlier: Prior ATL coverage of Brian Valery (scroll down)
-
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Deal flow has clearly picked recently up for most US associates, counsels and partners in Hong Kong/China and Singapore. We are on the phone with a lot of these folks on a daily basis, many of whom we have known for years. Further, the head of our Asia team, Evan Jowers, and Kinney’s founder and president, Robert Kinney, frequently meet in person with leading US partners in Asia to assess their needs and keep on top of the inside scoop at as many firms as possible. The need for legal recruiting help in Asia from experienced recruiters appears to be live and well. In March, Evan and Robert were in Beijing at such meetings, in April, Evan was in Hong Kong, and for half of June Evan will be in Shanghai and Hong Kong. Thus its pretty easy for us to tell when there has been an across-the-market pick up in capital markets and corporate work.
On an average day in Asia when Evan and Robert visit firms, they typically have 5 to 9 meetings a day, mostly with US partners in the market. The reason they have these meetings is not simply because Kinney makes a lot of US attorney placements in Asia and that a particular firm may have openings; instead these are just visits with friends. After years of working together as business partners, the folks at Kinney are actually these peoples’ friends. The firms Kinney work closely with in Asia (which is just about every law firm – call us if you want to know the one firm in the world we will never place anyone with again, ever, and why) look forward to the visits, or at least act like they do. After seven years in the market, many of the client partners are former associate candidates. Also, these US partners see Kinney as a very good source of market information as well, because they know how deep their contacts are in the market and how frequently they are speaking to counterparts at peer firms.
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