So, this is the year of the great salary increase — well, at least in Biglaw. After nearly a decade of salary stagnation, Cravath set the new MoneyLaw standard in early June, and we’ve been keeping pace with the developments ever since then.
Most of the coverage at Above the Law has been focused on the associates already ensconced in Biglaw’s warm [read: smothering] embrace. They want paper proof their firms respect them as much as Cravath does, otherwise they’ll be on the phone with recruiters. But for law students about to run the on-campus recruitment gauntlet, it can be overwhelming.
But this is information you need to know before you decide where to go for that career-defining summer associateship. The relevant question is: how best to bone up on the facts? ATL has over 300 stories about the changes to associate compensation, and trying to read them all to get a good understanding of the new market realities is a chore. So we decided to make things easy — an easy chart that compares apples to apples to help you make sense of all the noise.
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So, let’s define our terms. MoneyLaw means the below scale, through at least 7th-year associates in all the firm’s major markets. Yes, there is some difference in how these firms treat 8th- or 9th-year associates, but, should a rising 2L decide to start their career there, this will give them a good sense of how the firm will treat associates for the majority of their careers. And if you are trying to work outside of the major markets, you’ll have to do some additional research, but my guess is law students who want to start their career in Minneapolis are doing so for reasons outside of money.
1st year – $180,000
2nd year – $190,000
3rd year – $210,000
4th year – $235,000
5th year – $260,000
6th year – $280,000
7th year – $300,000
Next up: Compression Alert. This is when a firm proudly announces $180,000 for first-year associates, but is much more quiet about what’s going on for older associates. Sometimes it is because the firm’s compensation is a black box, other times it’s because they’ve decided to give smaller (or even no) raises to more senior associates, and this way they get to boast about meeting the market and save some money. Be wary and ask a lot of questions about these firms, because even as relatively young associates, the compression can set in, and no one wants to bill 2000+ hours for less money then folks at peer firms. Don’t be short sighted — even if you only expect to spend a year or two in Biglaw, careers have a funny way of taking unexpected turns.
“Ranges within market” means the firm doesn’t use class year as the sole determinant of compensation, often dividing associates into levels or tiers. Despite the somewhat idiosyncratic way of paying people, these firms are still basically paying associates market rates.
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Below-market means the firm gave raises (or maybe decreased salaries), sometimes just to first years, but compensation for associates, as a whole, is below market. No movement means that despite all the firms that have made changes to their compensation structure, these firms haven’t made a move since June.
This is everything we know about compensation at the Am Law 200 firms, so enjoy the ATL Compensation Guide to On-Campus Recruitment!
We are covering this story extensively, so please drop us a line — text (646-820-8477) or email (subject line: “[Firm Name] Matches Cravath”) — if you know of any additional compensation information. All sources are kept strictly confidential.
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).