The House Judiciary Committee is taking a five-minute recess in the Monica Goodling testimony. We will resume our liveblogging of the hearing in a fresh post. Our two prior reports appear here and here.
Meanwhile, we can confirm the rumor from the comments that Goodwin Procter has raised associate base salaries to the $160K scale, in Boston, California, and Washington, DC.
The memo appears after the jump.
The crew over at La BoucheLeBoeuf Lamb, who recently showed some love to law clerks, just raised salaries in their California offices.
They’re now on the $160K scale. The raise is retroactive to May 1, 2007.
Memo appears after the jump.
(If your firm recently raised associate base salaries and/or clerkship bonuses, and hasn’t been covered already in these pages, please email us to let us know. Thanks.)
We’ve confirmed with sources here in DC that WilmerHale has raised associate base salaries in its Washington office. Associates were notified individually earlier this afternoon. Accordingly, there was no memo. (But if we’re wrong about that, or if a memo later materializes, please send it along.)
Because associates received individual notification, we don’t have salary numbers for all classes. But the sources we’ve spoken with have provided us with figures for their class years that are consistent with the $160K scale. So it’s safe to assume that WilmerHale in Washington is now on par with the two D.C. firms that previously raised: Akin Gump and Hogan & Hartson.
WilmerHale’s move leaves Arnold & Porter and Covington & Burling as the most prominent members of the DC List of Shame. Feel free to add others in the comments.
We don’t have confirmation for raises at WilmerHale in Boston yet. But rumor has it that (1) WilmerHale has raised in Boston too, and (2) the pay raise is effective June 1.
Please send us any additional details by email. Thanks.
If you are still participating in any of the bizarre discussions from Friday morning’s open thread — which covered such diverse topics as open houses in Houston, childhood sleepover experiences, and the hipster quotient of the New Yorker — please don’t let us stop you. You can join in the fun by clicking here.
But if you’re looking for a forum for discussing subjects that are a bit more germane to ATL, such as associate pay raises and clerkship bonuses, then this new open thread is for you.
Enjoy the rest of the weekend; we’ll see you on Monday.
If you want to get a raise to the $160K pay scale, but without a corresponding “adjustment” to your bonus. Or if you want to bill only 1800 hours a year, and still make a decent living.
From a source at the firm:
Sorry, we have nothing new to report concerning either associate pay raises or clerkship bonuses. The best we can offer is yet another non-announcement announcement (like these two).
Today’s email, which actually made the rounds earlier in the week, comes from McDermott Will & Emery:
As you are probably aware, over the last two weeks there have been a number of developments in various of our markets in the US with respect to associate salaries. It is very clear, for example that the market in California has increased to a level of $160,000 for first year associates with commensurate increases in more senior classes.
The Firm intends to continue our practice of paying competitive compensation in all of our markets. Rather than taking action on a serial basis, we are continuing to monitor the relevant developments and plan to make a final decision by May 30 with retroactive effect back to May 1.
Thank you for your patience in the interim.
Dawna Butala for Donald A. Goldman, Esq. McDermott Will & Emery LLP
One source’s gloss on this: “A likely bump for the california offices, but looking grim for Chicago, Boston and D.C.”
We have to step away from the computer for a little while. Please discuss compensation issues, and post the text of any new announcements, in the comments. Thanks.
Earlier this week, we reported on the unexpected early promotions of four corporate associates at Cahill Gordon. According to various comments, the four soon-to-be partners, whose promotions will take effect in July, are Doug Horowitz, Corey Wright, Bill Miller, and Jonathan Frankel.
As some speculated, this quartet was promoted early to prevent them from leaving for greener pastures. Here are more details:
The way it apparently went down is that all 7th and 8th year litigators were sat down individually by a partner and told, a week or so ago, that 7th and 8th year corporate associates — corporate associates only — were going to be voted on this summer. The given reason was to prevent these people from leaving to go to i-banks.
Litigators were apparently told that they should not consider this to be a negative commentary on their value to the firm, and that they would be considered in the normal course, either end of this year (8th years) or end of next (7th years). Their chances of making it were described as “the same as they were yesterday.”
It’s my understanding that there is a growing rift between corporate and litigation at the firm. Each group — partners included — increasingly resenting the other. Corpies think litigators are lazy, don’t have to work nearly as hard for the same amount of money. Litigators resent being treated as second-class citizens.
Very interesting. Some food for thought:
1. Several top law firms have struggled to deal with the problem of star associates leaving for investment banks, hedge funds, and other opportunities in the world of finance. Will other Biglaw shops start employing this strategy of early promotion to retain their best associates? Could we be witnessing the start of a trend?
2. According to conventional wisdom, corporate lawyers generally have “better” — or at least more lucrative — exit opportunities than litigators. As a result, law firms face more outside competition for them. Could we eventually see a system in which partnership tracks are shorter for corporate associates than for litigation colleagues, in reflection of the different markets for the two practice areas?
It has been a while since our last update on associate pay raises. That’s because we have nothing to report. If you hear of anything, please email us.
In the meantime, here’s something from a Texas tipster:
Thought I would pass along information I’ve compiled over the last few days re: Texas associate salaries.
First, here’s an article where all the big Texas shops basically give the finger to the idea of pay raises any time soon.
Second, here’s the list of firms (that I know of) with offices in Texas that have raised to $150K or higher (current big firm average in Texas right now is $135K). The name of the city and number of associates in the offices in those cities is also listed (source, NALP). There may be others that have gone up that I don’t know about. Please use your vast network of informants and resources to find out.
The rest of the message, including the list, appears after the jump.
Although there continues to be activity on the associate pay raise front, things seem to have quieted down in terms of clerkship bonuses. The most recent announcement was that of Patterson Belknap — from Monday morning.
Are there no new announcements out there? Or are we just not hearing about them?
If you have any information to share, please email us (subject line: “Clerkship Bonus”). And feel free to discuss further in the comments. As always, thanks in advance for your tips.
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 six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months, and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
The evolution of relationships between the genders continues. Currently, in law firms, there is an interesting conundrum; balancing the desire for a gender-blind workplace where “the best lawyer gets the work and advances” and the reality of navigating the complicated maze created by the fact that, in general, men and women do possess differences in their work styles. These variations impact who they work with, how they work, how they build professional connections and how organizations ultimately leverage, reward and recognize the talents of all.
Henry Ford sat on his workbench and sighed. A year earlier, he had personally built 13,000 Model Ts with his own hands. Fashioning lugnuts and tie rods by hand, Ford was loath to ask for help. Sure, there were things about the car that he didn’t quite understand. This explains the lack of reliable navigation systems in the Model T. But Ford persevered because he knew that unless he did everything, he could not reliably call these cars his own.
“Unless my own personal toil is responsible for it, it may as well be called a Hyundai,” Ford remarked at the time.
The preceding may sound unfamiliar because it is categorically untrue. And also monumentally stupid. Henry Ford didn’t build all those cars by hand. He had help and plenty of it. Almost exactly one hundred years ago, Henry Ford opened up the most technologically advanced assembly line the world had ever seen. Built on the premise that work can be chopped up into digestible pieces and completed by many men better than one, the line ushered in an age of unparalleled productivity.
Today, an attorney refers business because he can’t do everything the client asks of him.
There are three reasons why this is way dumber than a made-up Henry Ford story…