Associate Salaries

Sidley Austin Mystery Meeting Follow-Up

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On Friday, we reported on a mystery meeting for all associates at Sidley Austin. We noted that associate salaries — salaries that have been frozen since 2008 — were on the agenda.
So what was the outcome for Sidley associates? Apparently, more confusion. A Sidley tipster reports:

we left the meeting confused. they said we would not slip behind peer firms, which they identified as including Kirkland and Latham. They said starting salary would remain at 160. They said we would be returning to some salary scale (but 2008 not explicitly identified), but there would be some who wouldn’t for performance or hours reasons. no indication as to how many wouldn’t get as big a raise as their peers. We’re all to get individualized emails with more info when things are finalized. I suspect they wanted to have things finalized by today but some things slipped.

What’s the hold-up at Sidley? It really shouldn’t be that confusing to return salaries to market level….


Let’s get some facts clear. Kirkland & Ellis never froze salaries. So they are paying market rates. Take a look at this chart to reacquaint yourself with the market for associate salaries.
Meanwhile, Latham & Watkins, the other firm named as a Sidley peer, is also back to paying market salaries. Latham froze salaries at 2008 levels, but this year made a true-up raise — raising associates two class levels, to put them back on par with associates at firms that never froze salaries in the first place.
So, if Sidley wants to keep pace with firms that pay market salaries, then all they have to do is raise their associates up two class levels. Or let me put it this way: the only way Sidley can keep pace with K&E or Latham is for the firm to follow Latham’s example and make a double bump raise. Anything less, and Sidley will not be paying at the top of the associate salary market.
Are there other Sidley peers that we are missing? Mayer Brown and Winston & Strawn are sometimes mentioned as Sidley peers (big Chicago firms). But those firms traditionally wait for other market players — like Sidley — before they make their salary decisions. If Sidley is waiting on Mayer Brown, and Mayer Brown is waiting on Sidley, it would just be weird.
The market for associate salaries has been set. It’s really just a question of whether or not Sidley wants to follow the market.
Earlier: Mystery Meeting at Sidley Austin: Today at 2:00 p.m.
Latham & Watkins: True-Up Raises Are Official

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