Associate Salaries, Biglaw, Money

Firm Finally Announces Raises... Some Offices Miss The Cravath Scale

After a long delay, raises are coming, but not quickly and not in the amounts some may expect.

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"Can I have this?" "No, not just yet..."

‘Can I have this?’
‘No, not just yet…’

UPDATE (6/28/2016 10:27 a.m.): Some offices may really have missed the cut… despite incredibly detailed raise info from tipsters in other offices, a tipster from another major office just said they’ve heard nothing. Perhaps the firm that employs a well-oiled machine isn’t a well-oiled machine.

Last week, we received some pointed complaints from associates at BakerHostetler. To recap, one tipster suggested that BakerHostetler was so tight with its money that it may pretend not to know there are raises even happening.

Apparently that specific fear was unfounded — at least for associates in the major offices — because the firm just announced that it would be raising salaries for young associates to the $180K scale in Houston, New York, Washington, and Los Angeles. For associates in any of its nine other domestic offices, the firm will be boosting salaries to $150K.

But those tipsters complaining about BakerHostetler’s miserly nature may well have been on to something. From our understanding, the firm has specifically not offered raises to the summer associates, making them the first firm to skimp on recruits in awhile. The firm also maintains lockstep compensation only for the youngest associates. More senior associates will have a new scale dependent on profitability, with higher-producing associates likely receiving the full Cravath scale match, while others receive smaller salaries. On the one hand, senior associates can see this as a swipe. On the other, senior associates who desire flexibility can take advantage of managing their time as they see fit with the understanding that they’re not taking from the firm if they choose not to bill 2,100+ hours that year. But in either event, it’s money the firm is saving on associate compensation.

We also don’t quite know when the raises will take effect. Given that the firm isn’t raising summer associate salaries, it’s a good bet the firm has no intention of meeting the July 1 target set by most matching firms. When it comes to timing, one tipster wrote:

The firm is having another meeting in July to determine the details on the pay raise, which will go in effect before the end of the year. We have been told that more details will follow.

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For now, a tentative congratulations to BakerHostetler associates. This announcement has been a long time coming… and it sounds like the money may still be a long time coming.

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.

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