We have another salary increase, and while most of our posts on that subject can have a deja vu feel, occasionally we get one that bucks the full Cravath match. Usually such a firm is opting out of driving salaries through the roof in a smaller market or is up for some shaming for trying to cheap out on its labor force.
But then there are some firms that probably should fall into a second-tier when it comes to associate compensation — and should embrace that role before they bankrupt themselves trying to compete with Cravath.
Olshan Frome Wolosky, a respected midsize firm, informed its associates that it would be boosting first year salaries to $170K, with more senior salaries communicated individually. We’ve posted the memo on the next page.
Olshan was already paying first-years $150K, so this maintains their approach of paying $10K below the high end of the market. However, it’s interesting to see someone openly resist the urge of so many non-elite players to match Cravath. We don’t have any data on the salaries beyond those of first years, but it’s probably safe to say these don’t ratchet up at the same pace they would at Cravath.
And that’s perfectly fine. Associates who move to Olshan did so with their eyes open. They did it to be well-compensated at a rate just a notch below the top of the market in exchange for an opportunity that fit their careers better than staying chained to a Biglaw behemoth ever would. So, as long the firm keeps itself in line with what they expected, everyone should be happy.
Is it possible a second-tier salary comp market is starting to reveal itself?
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.
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Earlier: One Firm Decides To Pump The Brakes On This Whole ‘Raise’ Thing
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.