Biglaw Firm Does Right By Junior Associates, Mid-Levels and Senior Associates Not So Much
Not everyone is happy about these raises.
Not everyone is happy about these raises. Though, since Reed Smith laid off attorneys earlier this year, I guess the firm thinks associates should just be excited that they still have jobs. But, perhaps more accurately, it probably means they’ll lateral somewhere more generous.
This afternoon, the associates in Reed Smith’s New York office got an email, which indicates that the firm is bumping up salaries for first- and second-year associates, but not for any other classes. The mid-level and senior associates are left in the ill-defined land of maybe getting merit raises:
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The problem with that, according to several tipsters, is the “merit” scale is used to compress the salaries of the more experienced attorneys, even those that are exceeding billing targets. Those folks were already below the old $160,000 market scale:
Some pressure on RS would be nice!
Finally bumped up starting salary to 160 in a handful of offices last year but with severe compression among mid/senior associate salaries. Now senior associates more than $110-120k below new market. Hard to justify for amlaw 20-25 firm with $1.1M PPP and $1.1 billion in revenue marketing itself as an international powerhouse. Associates very frustrated.
Reed Smith… is already below market. Call them out on it–maybe they will give us associates a break. We need a morale boost! They haven’t addressed it yet internally… crickets.
This certainly isn’t going to to help morale among the older associates. I’m sure they’ll super enjoy helping a second year through a complex offering they’ve never done before secure in the knowledge they are making all of $5,000 more.
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UPDATE 5:42pm: It seems the San Francisco and Silicon Valley Reed Smith offices got the same email as New York.
UPDATE 6/24/16 9:46AM: Reed Smith associates in DC, Tysons, and Houston all received the same email as NY, SF and Silicon Valley. Associates in Philadelphia, Princeton and Wilmington received a slightly different one. The 1st year starting salary was $145,000 there, now it is being bumped to $160,000, and second years will now make $170,000, while mid-level and senior associates are likely getting boned.
Our tipsters remain furious and certain that the majority of associates will wind up with salaries below market:
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Second time in two years these offices have backhanded their senior and mid level associates in exchange for their years of hard work and given the people doing their cite checks an unearned windfall.
The raises also do not go into effect until January 1, a full six months after those truly following the Cravath scale get their money.
We are covering this story as market conditions develop, so please drop us a line — text (646-820-8477) or email (subject line: “[Firm Name] Matches Cravath”) — when you know of another firm making a compensation move. 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. All sources are kept strictly confidential.
Kathryn Rubino is an editor at Above the Law. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).
