Compensation

It’s always sunny – or raining money? – in Philadelphia.

Philadelphia: it’s all about the Benjamin. The city abounds in tributes to its famous founding father, Benjamin Franklin. It even boasts a museum devoted to his life and times.

And maybe Philly will be all about the benjamins, plural — as in hundred-dollar bills. There’s speculation afoot that the new going rate for first-year associates in this city could rise to $160,000.

What’s the basis of the speculation? And could a Philadelphia pay raise have implications for other markets?

double red triangle arrows Continue reading “Nationwide Pay Raise Watch: Could Philadelphia To $160K Drive NY To $190K?”

What’s more stressful: working in-house, or working at a law firm? Conventional wisdom might say that law firm life is more stressful — but that’s not the case for everyone, as recently explained by one of our in-house columnists, Susan Moon.

So in-house lawyers might be more stressed than many people think. But at least they’re getting paid a pretty penny to put up with all these headaches — mo’ problems, mo’ money?

That’s one conclusion to be drawn from Corporate Counsel’s new rankings of the nation’s best-paid general counsel. Conventional wisdom holds that in-house lawyers earn less than their Biglaw counterparts — but top in-house lawyers, the GCs of the nation’s largest companies, earn sums that meet or even exceed Biglaw partner pay….

double red triangle arrows Continue reading “Who Are America’s Best-Paid General Counsel? (2014 Rankings)”

Hop in the DeLorean and travel back in time with us.

Last month, we took a look at associate compensation in the 1990s. Our post focused on the cities of Atlanta, Boston, Chicago, Dallas, Houston, and Los Angeles. We said that in the future we’d look at remaining major markets: New York, Philadelphia, Pittsburgh, San Francisco/Palo Alto, and Washington, D.C.

Today we’ll tackle Biglaw in the Big Apple. What were NYC salaries like in the last millennium?

double red triangle arrows Continue reading “Flashback Friday: A Look At Associate Compensation In The 1990s (Part 2)”

Ed. note: This is the latest installment in a series of posts on lateral partner moves from Lateral Link’s team of expert contributors. Michael Allen is Managing Principal at Lateral Link, focusing exclusively on partner placements with Am Law 200 clients.

If you stood outside the AT&T Center on June 15th at 9:10 p.m. local time, you would have witnessed a steady stream of crestfallen Miami Heat fans bemoaning the performance of anyone other than Lebron James. Ask any of those fans if they thought Chris Bosh was worth a max contract in the off-season and they most likely would have answered “No!” with feverish enthusiasm.

Fast forward to the off-season, teams have now expressed interest in signing Bosh to a max-contract sheet. As it stands on Thursday, July 8, the Rockets are willing to pay him $22 million a year.

So what does this mean for you? It means that just because your law firm tells you that you’re worth a certain amount of dollars does not mean you can’t secure more greenbacks. Salary negotiations are tricky, and it is helpful to get in touch with a recruiter before you attempt to renegotiate with your current firm. Before you start maneuvering, here are five pointers to consider before strategizing…

double red triangle arrows Continue reading “5 Ways To Increase Your Biglaw Salary”

Last month, when we covered BuckleySandler’s midyear bonuses, we included a shout-out to Cahill Gordon. Cahill has paid out generous summer bonuses to its associates dating back to 2010, and we wondered whether the firm would continue the streak.

The answer: yes. Cahill just announced its latest summer bonuses. The timing is good, since rising 2Ls will soon be picking which firms to interview with during on-campus recruiting. (Note Cahill Gordon’s nice rise in the latest Vault 100 rankings, which are widely consulted by law students during the OCI process.)

How big are the Cahill midyear bonuses this time around?

double red triangle arrows Continue reading “Associate Bonus Watch: Summer Bonuses At Cahill Gordon Once Again”

Complaining about profits per partner as a metric is a favorite pastime of Biglaw partners. Sometimes it can look like sour grapes by partners at firms that don’t excel in the PPP department.

But, to be fair, there certainly are things to complain about when it comes to profits per partner. For example, PPP is an average that can sometimes conceal a great deal of variability. It tells you exactly what its name suggests — average profits per partner, i.e., total profits divided by the number of partners – but it doesn’t tell you what the average partner takes home in a year.

To get a better sense of compensation for an average partner, we’d need to know the “spread,” i.e., the ratio between the compensation of the highest-paid partner and that of the lowest-paid partner. Thankfully, there is (some) information on that.

How do partner compensation spreads look these days at leading law firms?

double red triangle arrows Continue reading “The Haves And The Have-Mores: Partner Pay Spreads At Leading Law Firms”

Hop in the DeLorean and travel back in time with us.

Some of our readers are old enough to remember the 1990s. It was, in my opinion, a glorious decade for popular music. (I have a collection of beloved cassette singles from that era.)

But we’re here to talk about the legal profession, not pop music. What were the nineties like for Biglaw?

Also glorious. There was a recession in the early 1990s, but for the most part, times were good. This was especially true near the tail end of the decade, when the booming dot-com economy filled the coffers of many large law firms (before the arrival of the early 2000s recession).

How much of that wealth trickled down to the associates? Let’s find out….

double red triangle arrows Continue reading “Flashback Friday: A Look At Associate Compensation In The 1990s (Part 1)”

The current discussion regarding the decision by Dentons not to report its average profits per partner (“PPP”) to the American Lawyer is interesting. While I was at Greenberg Traurig, then-CEO Cesar Alvarez used to have a pithy statement on the whole PPP issue, along the lines of: The only thing partners really care about is “profits per me.” There is a lot of wisdom in that statement. In my experience it is true for existing Biglaw partners, potential laterals, and those (fool?) hardy associates aspiring to partnership.

At the same time, the popularity of the American Lawyer’s various charts and rankings can’t be denied. And PPP is one of the catchier columns on those charts. It is used as a proxy for determining everything from firm prestige, to strength of client relationships, to how well a firm is managed.

Savvy associates can and do use it to determine associate quality of life at a particular firm. Your firm has a blazing PPP and no big contingency windfalls feeding the flames? Good chance you are looking at a never-ending flow of “interesting work,” coupled with the partnership prospects of a diminutive drone buzzing around hoping to get noticed by the queen bee. In contrast, you might enjoy a better lifestyle if employed as associate #614 by a Biglaw 2.0 monolith, but you also run the distinct risk of making partner only to realize that the financial gulf between you and the “real” partners is a broad one….

double red triangle arrows Continue reading “Beyond Biglaw: ‘Profits Per Me’”

Despite making six figures, some Biglaw associates are still unhappy with the amount of money they take home. Starting salaries at some firms are larger than at others, and for all of the intense labor that comes with being an associate, it’s just not fair.

How should Biglaw firms respond to these complaints? Some of the more enlightened members of law firm leadership would increase their associates’ salaries to match the rest of the market, but most would happily continue to work their associates to the bone and ignore their wage woes.

One firm apparently thought it had found a way around associates’ salary grievances, but it may have just backfired. Straight from the firm that produced the sexist women’s style memo seen ’round the world, we bring you what seems to be one of the craziest incentive programs we’ve ever heard of…

double red triangle arrows Continue reading “Top Biglaw Firm Offers Associates Motivational Quotes Instead Of Monetary Raises?”

Occasionally, someone wants me to do legal work outside of my practice area. I tend to refer the potential client to an attorney who can handle it and ask for a referral fee when appropriate. But sometimes it makes sense to work the case myself with outside help — for example, if the work is for an existing client and he cannot afford the referring attorney’s fee. So as a gesture of appreciation to the client, you want to help him for a reduced fee. Or you want to get experience in the area of law that is involved.

And let’s be anonymously honest. Sometimes the case has potential for large attorney’s fees and you want a bigger cut than the firm’s standard referral percentage. It’s hard not to feel bitter when you get a paltry referral fee up front and later learn that the attorney who handled the matter got a half-million-dollar payout.

So today, I want to write about how I typically (but not always) decide whether to refer a case out completely, or co-counsel with someone else. I assume readers are familiar with and will follow the ABA Model Rules 7.2 and 1.5(e) and your state’s versions of these rules. My first priority is to refer a client to a competent attorney, even if it means a smaller referral fee or none at all. But when there are three or more equally competent and business-savvy attorneys competing for your referrals, the size and girth of the compensation package can be appealing…

double red triangle arrows Continue reading “Back In The Race: Teaming Up”

Page 1 of 1612345...16