UPDATE (7/8/16, 7:47 a.m.): More details available below.
Associates at Dentons — or more specifically, Dentons US LLP — received word earlier today that the firm was “holding a video conference for its associates at 4:30 p.m. EST ‘to discuss associate compensation and benefits.'” This was one of those big fish we were still waiting upon. Even if the firm refuses to participate in Am Law’s financial roundup any more, we have every indication that their PPP is… somewhere north of $1 million.
And this afternoon, a floating head straight out of The Wizard of Oz (probably not) informed associates of their new salary structure.
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It was not well received…
Dentons management had a meeting today (which is still ongoing) to tell associates that they are not matching the new scale. This isn’t surprising, since the firm’s black-box salary system results in most mid-levels being paid less than the new first-year benchmark. The meeting was characteristically tone-deaf, with management spending 40 minutes talking about negative client reactions to the salary increases and the firm’s commitment to “innovation” (wtf?) before even mentioning anything about salaries.
Holy hell. “Innovation”? Blaming clients? Hm. Maybe there’s a reason they don’t report numbers to Am Law….
At least one tipster had the perfect reaction to this meeting:
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I left the meeting early because I had a call with my recruiter regarding the two lateral interviews I have scheduled next week.
Good luck!
UPDATE (7/8/16, 7:47 a.m.): We’ve gotten some more reaction from folks who were able to make it through the long meeting.
To be fair, while not matching, the firm said that it would be giving a second year-end bonus in January that was meant to make up for the 2016 salary shortfall and that they would be raising salaries in January to competitive levels. I won’t be holding my breath, but they did technically announce raises, but in their very own Dentons way.
An even more detailed tip echoed this skepticism:
Mike McNamara, the US managing partner, outlined a few different components to remain competitive in Thursday’s meeting.
First, Dentons commits to offer “competitive compensation.” It will reevaluate compensation for 2017 and, presumably, associates will receive increased compensation that reflects the market. Dentons, however, has historically underpaid its associates, so I’m sure the new “competitive compensation” will reflect this lower trend. New compensation will be payable on January 31, 2017.
Second, Dentons will offer one-time bonuses to reflect good performance in 2016 if evaluation criteria are met. This means at least 2,000 credible hours plus other fuzzy “contribution” factors–whatever that means.
The firm is also considering enhanced benefits and other vague, ill-defined “compensation enhancements.” Parental leave was one example, as was a travel option for working out of international offices so associates can get a glimpse of the grandeur of Denton’s worldwide footprint. Some of these initiatives will become clearer by the end of the month, and some might only be implemented in 2018.
Overall, I think the associates are pretty skeptical that the new compensation scheme will approach anything close to market rates at Cravath-matching firms. Nevertheless, for a stellar performer, I guess it’s possible he or she might make a Cravath-level salary. The other 99% of us will not.
So there you have it. Not a complete match, but at least you can toil in an international office occasionally. Maybe. In 2018.
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.
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.