Today Is The Last Day: Where Is The Money?
If you aren't going to pay MoneyLaw salaries, maybe you should just admit you're a lifestyle firm.
The clock is ticking. As of tomorrow, the Biglaw compensation bump that has been sweeping the industry will be effective. (Yes, I know, a few firms have annoyingly pushed back the effective date of the raises until January 1, in an effort to get six more months of cheaper labor out of associates. But, the market standard is a July 1 effective date.)
At Above the Law, we have documented 103 firms so far that have increased associate salary in some way. That may seem like a lot, but let’s not forget the prestigious Am Law list goes up to 200. So for the rest of the firms out there, what are you waiting for? Associate base compensation hasn’t seen any movement in nine years, and momentum was growing for some kind of shift. If the massive movement of the market — with almost 4 weeks’ notice — isn’t enough to spur action, then what is?
If you aren’t going to pay MoneyLaw salaries, maybe you should just admit you’re a lifestyle firm. Some high-quality lawyers would probably love you for it. But there needs to be a reckoning of who and what your firm really is.
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Sure, not every firm that has made a move on compensation issues has received universal praise. In fact, when you leave older, more experienced associates out in the cold to chase the $180,000 dragon you’re likely to get some backlash. But this all comes back to just being honest with yourself, and your employees, about the true nature of your practice.
And if you can’t get it together today, you can always make the raises retroactive.
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.
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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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