Biglaw

Biglaw Firm Raises Associate Salaries -- But Only If Associates Are Billing Machines

Will associates get a raise? Depends on what their hours look like.

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You’d think that a firm raising salaries would be a good thing, greeted with jubilation. But when Katten Muchin Rosenman raised associate salaries this week, associates caught the fine print, and the ones we’ve talked to are not happy with the firm.

As you’re probably aware, this summer, associate raises and special bonuses have swept through Biglaw. So, it wasn’t surprising that Katten wanted to get in on the action, and be able to say they offer associates the new hotness, as seen by this compensation scale:

This seems standard, even if there is a little compression right at the top of the scale (the majority of other firms raising salaries have a separate break out for the class of 2010 at $340,000). But it was this addition to the scale that pissed off most people:

To receive the new base salaries, associates must be providing client service up to our standards of quality and efficiency and be on an annualized pace to meet our minimum hours requirements. For those associates who are not currently on pace to meet the hours requirements, but complete the year on or over pace, we will pay a bonus to ensure that all associates on or over pace by the end of the year have the benefit of the higher salary.

Ummm, da fuq? Base compensation being tied to billing targets is a completely crappy plan. Remember, these raises amount to only slightly more than a cost of living adjustment, having that tied to the increasingly archaic billable hour standard seems harsh. And Katten tipsters have let us know just how bad they think this idea is. Complaints are pouring in, angry over the lack of clarity the firm has provided:

Please report on how underwhelming these raises are, and how it’s totally unclear what happens to you if you do not meet hours this year but do the following year, or vice versa, or regarding any details whatsoever.

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Pissed that most other peer firms don’t have that requirement (Mayer Brown and Fenwick are the only other firms to have similar requirements, though those programs are slightly different):

Lots of reaching out to recruiters because we thought we were at a different level of firm than this…

To indiscriminate anger over the whole situation:

Katten only raises if you met an hour threshold. Lots of angry people.

Oh, and just for an extra little bit of salt in that wound, the firm will not be offering special summer bonuses like so many of their peer firms.

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(Read the full Katten memo on the next page.)

headshotKathryn Rubino is a senior editor at Above the Law. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

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