Earlier, we looked at some grievances we’d received from around the legal industry from firms that hadn’t yet announced raises. One of those firms was BuckleySandler. The commenter was flabbergasted that despite high PPP and billables, the firm had taken no action in the salary wars. It was an earnest complaint, but also a complicated one. BuckleySandler is known as a great place to work and as a compensation leader, exposing just how much Cravath’s move has upset expectations.
Since that post, the firm has sent out a memo to employees and it’s… not a raise. No, instead it’s a package of summer bonuses to share the love after a profitable first half of the year.
Those associates billing an annualized rate of 1,700 hours over the first half of the year will receive $7,500-$25,000 depending on seniority and intensity of effort. Those below that billing figure will receive “a more modest bonus.” Ahem… 1,700 hours? That seems like a very, very easy number to beat. This is a pretty sweet summer present.
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But it’s not a raise. That’s certainly going to rub some people the wrong way, but BuckleySandler addressed this in their memo, noting that they traditionally don’t follow the prevailing Biglaw salary… they exceed it.
In fact, with the firm’s 401(k) profit sharing and its generous bonuses, all associates tend to exceed the Biglaw matrix — the average first-year in 2015 made over $180K already — and the “highest performer” attorneys do even better, as this chart shows.
According to its message to associates, the firm believes that, including this summer bonus, associates should, on average, exceed the Cravath scale again.
But this is the awkward fallout of Cravath’s announcement. Just as I’ve applauded some law firms for offering smaller raises in concert with the expectations of their associates, there’s a flip side. When Cravath blew the top off a salary situation that was, probably, long overdue for a shakeup, it put some other firms in a pickle. BuckleySandler was taking advantage of the fact that the market undervalued associates to position itself as a leader. Now that the market has moved to correct itself, the premium that BuckleySandler associates expected over the market is bound to shrink. BuckleySandler may find itself on the wrong side of matching associate expectations through no fault of its own!
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Of course, this may not matter in the grand scheme. The second half of the year might yield a tremendous rainfall for BuckleySandler and the way other firms are spending around the country like drunken sailors might shrink Biglaw bonuses and BuckleySandler may end up beating the market by the same proportions it did last year.
But that’s not necessarily guaranteed. And lawyers are generally such risk-averse people.
The full BuckleySandler bonus announcement is on the next page, and the chart of average 2015 compensation is available on the page after that.
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: Angry Associates Ask ‘Where’s My Money?’
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.