Peer Pressure Causes Another Firm To Increase Associate Compensation
Thirteen-year-olds everywhere were right, peer pressure works.
Peer pressure: it’s for more than just teenagers desperate to appear cool. Biglaw firms are now admitting it’s the big reason they are showing associates the money. DC-based Hogan Lovells just announced they are moving to the Cravath scale for most of their offices:
Our associates are critical to our overall success. We have always aimed to provide our associates with fair and market-based total compensation — both base salary and merit-based bonuses — that is competitive with our peer firms.
Thirteen-year-olds everywhere were right, peer pressure works.
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The Miami and Colorado Springs offices won’t be seeing as big of a raise (perhaps wisely), but they will be getting a raise — they’ll get a percentage increase the same as the others in their class year. Summers are getting the benefit of the raise, and counsel will be dealt with individually. With those small caveats, the Hogan Lovells associates are just enjoying their payday. As one tipster noted:
The real story here is that we are all pretty excited to be the first dc based firm to move, especially after Covington beat us to the punch on bonuses. Associates here beginning to truly believe management is committed to its positive new messages regarding firm vision and operation across the board.
Also, if other dc centered firms don’t up their base, we are very excited for lateral and law school hiring seasons :).
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.
(Read the full Hogan Lovells memo to associates on the next page.)
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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).
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