Enjoy Your Bonuses Before The Associate Compensation Bubble Bursts And Biglaw's Bottom Falls Out

It's bound to happen -- and perhaps sooner than later.

onNovember 20, 2018 at 2:14 PMNovember 20, 2018 at 1:12 PM

Only firms that compete with Cravath for associates need to be competitive with their comp scale. But if history is any guide, a very large number of firms across the country will eventually follow. This will increase the magnitude of the bubble that has been growing on associate comp. I predict it will burst when the economy softens.

— Kent Zimmermann, a law firm management consultant at the Zeughauser Group, offering commentary on Biglaw’s year-end bonuses and the summer raises and special bonuses that preceded them. As we’ve noted previously, recessions tend to follow increases in Biglaw associate compensation, so Zimmerman’s prediction could come true. In the meantime, enjoy your money.

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Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.