Back in the 90s, Gunderson Dettmer managed to kick off a wholesale reevaluation of associate salaries, driving the entire legal industry to radically boost its model of compensation. There’s an argument to be had that Gunderson’s move represented a more significant jolt to the legal world than any of the more recent salary hikes.
But that was then and this is now. Gunderson announced that it would be offering summer bonuses to hard-working associates this year and put the legal community on blast that it was time to dig down and give a little for the folks who helped drive up revenue for the first part of the year.
Biglaw mostly responded with silence.
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Worse, actually, to the extent that Kirkland spent a recent firm meeting telling everyone how they’re basically printing money in the basement but aren’t planning on sharing this new boon with associates any time soon.
Like a classic episode of Carmen Sandiego, observers are looking across the skyline and wondering, “What happened to Biglaw peer pressure?” There was a time not too long ago when a firm like Gunderson could force every firm to jump in the wild race to generate the maximum goodwill for recruiting talent. What’s happened?
Ironically, the least consequential raise in memory might go down as the one that broke the Biglaw lockstep. Last year’s salary bump was functionally a slight cost-of-living adjustment but somehow it’s become the line in the sand. Around 70 percent of “Biglaw” firms — at least when measured by headcount — refused to match last year’s $190K scale. Presumably, they’ve decided that they aren’t suffering for coming in at a lower price point.
Not every firm has to keep up with the Cravaths of the world and it’s probably healthier for the industry that the Am Law second hundred start organizing themselves around a lower pay scale that fits with a lower price point for services. When it comes to these summer bonuses, it’s the elite who are suddenly balking. And balking while telling the world that the firms are performing well.
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What if someone threw a salary war and no one came? It’s possible we’re about to find out.
Earlier: Gunderson Announces Summer Bonuses — Your Move Am Law 100!
Biglaw Firm Holds Firm Meeting To Say They’re Making Tons Of Money And Won’t Be Giving It To Associates
Joe Patrice is a senior 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. Joe also serves as a Managing Director at RPN Executive Search.