Biglaw's Throwing Around $500,000 Signing Bonuses In Red Hot Lateral Market

The eye-popping signing bonuses for lateral associates.

We know the Biglaw lateral market is super hot right now. And it’s a job applicant’s market, so firms that want to keep their associates are throwing money at ’em (in the form of special bonuses and raises), and even retention bonuses on top of all that other money — if you’re lucky enough to work in a super valuable practice area.

So attracting new associates has become a priority for Biglaw. And, as reported by the Houston Chronicle, the value of a lateral associate has reached the $500,000 signing bonus level. And still, the shortage of Biglaw lawyers continues:

“We have hired a dozen lawyers the past few months and we have a dozen new lawyers starting this next week and we need several more right away,” said Kevin Lewis, co-managing partner of the Houston office of Sidley Austin. “Between 1998 and 2000, tech was going crazy keeping us all busy. Now, it is every practice group. I have never seen anything like this.”

“We are injecting a couple trillion dollars into the economy and interest rates remain near to nothing,” Lewis said. “It is a recipe for everyone (staying) busy all the time,” he said.

Texas, in particular, has seen an associate crunch as non-Texas firms are expanding into the state or growing the firm’s footprint. That, plus the influx of deals, has had a profound impact on the market:

Travis Wofford, who is vice chair of the global corporate legal practice at crosstown rival Baker Botts, said the Houston-headquartered firm saw a 24 percent increase in new clients between January and the end of July.
“There is an economic transition taking place in Texas, and law firms are front and center and are going to have to meet the demand,” Wofford said. “It has been insane. We are doing deals at a near record pace.”

All of which means there are just not enough qualified attorneys to go around:

“For the past several months, nearly all our clients have approached us with multiple needs within multiple practice areas,” said Amanda Pickering, a legal recruiter at Amicus Search Group. “There are not enough lawyers to fill the open spots. The talent pool is not growing fast enough.”

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So if you aren’t happy at your Biglaw firm, maybe it is time to look for another opportunity. A $500,000 check just might be waiting for you.


Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. 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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