It was nearly a month ago — June 4th, to be precise — when Milbank announced raises for its associates, kicking off the summer of money. Not to be outdone, Simpson Thacher announced special summer bonuses for all associates, ranging from $5,000 – $25,000 depending on seniority. Then Cravath asserted its dominance, slightly raising the market standard for senior associates’ base salary. The majority of the Biglaw — well, at least the elite firms — has gotten on board with this standard, which the firms made effective July 1st. But just because the effective date of the raises has passed, it doesn’t mean firms are done announcing raises — and what perfect news before getting a well-deserved day off in celebration of the 4th of July.
Take Sheppard Mullin. This firm ranks 47th in Biglaw profitability and 46th in profits per partner, and today they’ve finally decided to announce raises to associate base salaries, in line with the market standard:
But don’t get too excited — the firm has elected NOT to pay the special bonuses other firms are offering. They’re “comfortable” the firm offers more opportunities than competitor firms, and they’ll reevaluate their bonus amounts at year end:
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The Executive Committee has decided not to pay the “summer bonuses” that some firms have announced. With this increase in salaries we are comfortable that our overall package is competitive. We are proud of the superior opportunities we provide to our Associates to have meaningful client contact, develop a practice, and make Partner — the pathway to build a rewarding career. That said, we will over the coming months evaluate our overall associate bonus program to ensure our total Associate offering remains competitive. And we will continue to recognize those required to work extraordinary hours on behalf our clients by paying 10% and 20% more than “market” year-end bonus amounts at the 2200 and 2400 hour levels.
Though the move puts the firm below overall market compensation, most tipsters just seem glad the firm has acted on the raises.
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(Read the full memo from the firms on the next page.)
Kathryn 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).