Angry Associates Ask 'Where's My Money?'
These folks have a lot of grievances... and you're gonna hear about 'em!
Earlier this week, we took some time to share with you the concerns of some very peeved associates at firms that hadn’t announced raises yet. Within a matter of hours, Haynes and Boone matched (mostly… and unless you’re a counsel) and earlier today Jones Day managed to get something out to associates.
Given our success rate, we figured we’d give it another go. Behold the irate associates!
Hunton & Williams
Referral Fees The Key To Growing A Modern Practice? Overture Thinks So.
Hard to believe it was only last month that Hunton & Williams moved all its domestic associates to a $160K scale, no matter what the cost of living. After this month, the H&W partners must feel like they brought a knife to the proverbial gun party.
Recall earlier this year they announced all US offices to $160k, which is/was way above market in places like Charlotte, Miami, and HQ Richmond. So in some respects they have established themselves as a compensation leader (at least in smaller markets).
But other offices that were already at $160k (NY, DC, Texas) haven’t heard a thing. What gives? Those three markets have clearly moved to $180k. H&W certainly isn’t V25 or anything, but even peer firms have moved. At least in Texas (Bracewell, Locke Lord). Does H&W management think the $160k for everyone was enough?
Historically, H&W has precedent of matching (in Texas, at least). In fact, last go-around in ’07, Hunton announced $160k in NY and $145k everywhere else (in February). Shockingly, that was $10k above market in Texas! V&E & BB (and everyone else) didn’t move from $135k to $160k until later that summer (in July). And H&W soon followed to $160k in Texas. But for 5 months, H&W was very solidly a market comp leader!
When you look at it that way — and consider how shocking it seemed a month ago that a firm would actually pay lawyers in Richmond the top NY salary — H&W really was ahead of the times. They were very proud of those raises a month ago, but everything that’s happened since must have hit them like Floyd Mayweather hits defenseless people around him.
Long story short, we’ve still heard nothing out of Richmond, where fellow Virginia-based firm, McGuireWoods, is going out of its way to keep out of the salary news.
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Foley & Lardner
Speaking of furious associates, the Foley & Lardner folks are pretty pissed off about management pretending these raises are not happening… Could we perhaps mention them in a post to give them the kick in the butt they need???!!
Usually it’s dumpees and not dumpers who can’t move on with their lives.
BakerHostetler
Not sure whether others have emailed, but still awaiting ANY information from BakerHostetler regarding match or any adjustment to associate compensation. Firm is very black box when it comes to compensation, and I wouldn’t be surprised if management tries to pretend they’re not aware of what is happening in the market. Partners in the firm are doing very well for themselves (they recently ditched their non-equity track to further boost profitability), and it would be nice if (for once) they shared some of the benefit with the hardworking associates. Comp at BH has always been lower than market (especially with bonuses), so I would frankly be surprised if they increase everyone’s salary more than marginally.
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Referral Fees The Key To Growing A Modern Practice? Overture Thinks So.
We usually respect anonymity, but we have to make an exception here. That tip comes from none other than BakerHostetler’s ROSS the Robot. Gotta hand it IBM. We knew it was an impressive invention, but machine learning to bitch about salary? That’s the future of law.
BuckleySandler
All offices. Wtf. Despite super high ppp and billables.
Last year this was one of the top ten firms to work for. Just sayin’…
Norton Rose Fulbright
Hoo boy, people are really, really mad at Norton Rose Fulbright. Honestly, I haven’t seen Texas lawyers this upset since the last time I wrote about their housing market…
What about Norton Rose Fulbright?!?
Top-ranked Texas firm bested by much lower-ranked firms.
Bracewell?? Now HayBoo?! And Locke Lord?!?!??!In light of declining PPP post merger, associates see this is as v concerning
And another…
Only non-regional firm in Texas that hasn’t matched. Ridiculous.
And another…
Norton Rose Fulbright, for instance, has not matched. Management has also not communicated anything about this directly to associates, so we have no idea what is happening. We have only been told indirectly that they are “aware” of the raises and are looking into it.
Well, I’m sure the London-based firm will come through now that… oh! Oh dear God no!
Herbert Smith Freehills
All Magic and one Silver circle firm match, except Herbert Smith Freehills NYC has NOT. Morale rock bottom. Turnover staff and attorneys already sky high.
When reached this morning, HSF’s London headquarters said they were too busy stockpiling creamed corn and preparing for The Purge to comment.
Venable
Venable is one of the remaining firms with PPP in excess of $1 million that has not matched the new market salary scale.
While Venable had previously matched the old market scale for the most junior associates, salaries at the mid and senior levels lagged the old market. Now that the entire market scale has increased again, salaries for mid and senior level associates at Venable are significantly below the market. For example, the median salary for associates from the Class of 2010 is currently $225,000, which is $55,000 below the current market rate of $280,000. With such a significant shortfall, I can’t imagine why anyone would stay at Venable or why any law students or laterals would consider Venable if they have any other options. The firm needs to adjust salaries and value associates appropriately or even more of us are going to leave this year and we’re going to have a lot of trouble recruiting new associates.
Another tipster agreed with the frustration of older associates:
Mid level and senior associates at Venable are definitely concerned about a Reed Smith type situation happening here. We only raised to market for juniors a few years ago, but the rest of the compression situation is frustrating. No raises here yet, but if they do, I’m guessing the email will look a lot like Reed Smith’s. Frustrating especially watching Steptoe raise today.
Yeah, let’s not forget that Reed Smith may have raised salaries, but it left a TON of angry older lawyers in its wake.
Troutman
It seems like the heads of the firm are completely ignoring the whole situation. If Troutman is being marketed as a “top firm in Atlanta,” the associates should get paid like King & Spalding or, at least, Alston & Bird (even firms not based in Atlanta are raising Atlanta salaries). If they can’t get bonuses right (a separate but equal point of contention), they can (at a minimum) keep competitive with salaries of our Atlanta peer” firms.
Yes, raises are probably in order. But, not to sound like a broken record, it’s also possible that King & Spalding and Alston & Bird are overpaying in Atlanta right now. As we watch the NYSE tumble (down around 400 as I type this), and remember that attorney salary raises tend to hit right when the party’s almost over, perhaps it’s worth hanging back a tad. Long-term, it may be better to be the “just a smidgen under top firm in Atlanta” at this time.
Texas Boutiques
This is an interesting, non-Biglaw addendum. Not altogether sure what to make of it, but it’s worth knowing that lawyers in the market are now wary even of boutiques who aren’t raising:
I’d like to point out that two firms that are considered litigation leaders in Texas– Beck Redden and Gibbs & Bruns– have not yet matched. According to Chambers and Partners, they are two of three “Band 1” firms in Texas for commercial litigation along with Susman Godfrey.
http://www.chambersandpartners.com/13235/228/editorial/5/1This in light of two other Houston-based litigation boutiques– Susman and Yetter Coleman– matching their salaries (not to mention McKool).
I know ATL has focused on pressures for the Big Law firms in Texas. I hope you can give some coverage to these Texas litigation boutiques as well.
Remember, when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches Cravath”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.
Earlier: Let’s Hear From The Furious Associates At Firms That Haven’t Matched!
Here’s Why You Don’t Deserve The Same Raise… In Pictures
Answering Your Complaints About The ‘Cost Of Living’ Post
Dear Biglaw Firms, Please Don’t Raise Salaries
These Partners Desperately Don’t Want Us To Know They Aren’t Raising Salaries (McGuireWoods)
Prodigal Law Firm Returns To Cravath Scale (Haynes and Boone)
What’s Up With Counsel Salaries?
Biglaw Firm Does Right By Junior Associates, Mid-Levels and Senior Associates Not So Much (Reed Smith)
Foley & Lardner To Leave Eversheds Standing At The Altar
BakerHostetler Hires A.I. Lawyer, Ushers In The Legal Apocalypse
The Best Law Firms To Work For (2015)
Joe Patrice is an editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.
