Skaddenfreude: Hogan & Hartson Loves New York
From the D.C.-based Legal Times:
Skadden, Arps, Slate, Meagher & Flom said Wednesday it would increase its first-year associate salaries [in Washington] to $160,000, following in the footsteps of New York-based Simpson Thacher & Bartlett.Skadden is the first law firm with a major D.C. presence to up the ante for associate pay in Washington. The firm has 263 lawyers in the District.
D.C.-based Hogan & Hartson has also announced it is moving associate salaries in its New York office to $160,000, but it doesn’t plan to do the same in Washington as of yet.
So in New York, it looks like all the biggies will be following suit. But expect a divide to open up in D.C. between the “national” firms and the local shops:
[M]ost D.C. firms are staying quiet about whether or not they’ll follow. Karl Racine, managing partner of Venable’s Washington office, which pays first-year associates $135,000, says he “expects that to remain.”
You can read the rest of Nate Carlile and Anna Palmer’s article here.
Skadden Raises Associate Pay [Legal Times]
Earlier: Previous announcements of law firm associate salary increases (scroll down through “Skaddenfreude” archives)
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Karl Racine says he doesn't expect to raise above $135,000 because he doesn't want to. Watch the talent flee from his firm...
Any chance a firm like DPW or CSM will come over the top to 170k?
Yes, I see the typo ("Yu" instead of "You")... Would fix if I could....
What talent?
What talent?
...so the DC firms are telling each other through the press that they don't want to raise pay, huh? I don't know if anyone really expects DC firms to bump first-year associate pay up to $160, but when a fourth year at Hogan is making $175,000 w/ a discretionary bonus, and a first year at any NY firm is taking home $160,000 in base plus $30,000 in guaranteed bonus, there is something deeply wrong, and the quality of legal work out of DC will eventually drop because of it.
There should be a delineation between "national" firms not based in NY like Latham, Kirkland, etc., and other regional ones. That said, I don't think those firms are going to pay higher salaries in the smaller markets if they don't have to do so.
Anyone know if there was a Hogan memo or if associates told verbally? Also, anyone know what time W&C memo went out officially? Hoping that puts some pressure on CC.
Completely agree, for example, Latham's largest office is now in NY, committees are spread out and LA is by no means the home base. They consider themselves to be a national player competing with every other major firm in NY with a substantial national presence, but will they pay as a top 10 firm nationally or be content to be a regional firm with an outpost in NYC.
There are at least 15 NY based firms paying their DC associates $25K more than Hogan, Covington, Wilmer, Akin, Arnold Porter. It can't last. Predict Hogan leads DC market with adjustment to $150K.
What about Wachtell ? $170,000 ?
cold and hungry, ITA. Who gives up first in this chicken game?
cold and hungry, ITA. Who gives up first in this chicken game?
Any thoughts on Tx based firms going up too?
what are other ny firms waiting for? its clear that every firm in the v20 must now match or be banished from T10 OCI. are v50 firms waiting to see if there will be a 145 tier remaining for them to be a part of?
Perhaps they are waiting for partnership meetings to discuss the issue. I would imagine that this could take some time for a lot of firms.
This is worse than a book with no pictures. Every time I load this site, at the top is the word "Skaddenfreude" and a picture of a $100 bill. More Shanetta, please. Or Elect, or icky state court judges, or blurry photos of bloggers and lawyers, or lawyer-on-lawyer matrimonial action, or bench-slappery, or something, please.
Weil's memo stated it was raising for ALL U.S. Associates, which would include D.C.
11:45:
It appears that Weil matched for their Texas associates. That's a lot of money to make in Texas. I'm not sure how many Texas firms will follow suit.
I'd like somebody who is bashing the CA & DC associates who would like more money to explain to me how Texas warrants $160,000? As it is, many TX firms were already above DC at $140,000 starting...
Hey David: can we have a recap at the end of the day today with firms that upped just in New York and those that did it elsewhere as well? I'm at Dewey and I know Dewey did it for all US and UK associates, and I assume most of the other NY firms did as well...
I'm Rich:
But the down side is that you have to live in a republican sh!thole known as TX
Everyone at Hogan in DC should be outraged at this blatant attempt to discourage other DC firms from raising salaries. Hogan attempts to compete as a top 20 firm, but being the leader in resisting pay increases rather than unquestionably paying top dollar clearly places Hogan in a second tier.
The message is loud an clear for all law students and laterals considering the DC market: WORK FOR A NYC-BASED FIRM OR RECEIVE SECOND TIER PAY!
For the amount of money on the table, the decision should be easy for any recruit with an offer on the table from a DC-based shop and a NYC-based shop.
Everyone at Hogan in DC should be outraged at this blatant attempt to discourage other DC firms from raising salaries. Hogan attempts to compete as a top 20 firm, but being the leader in resisting pay increases rather than unquestionably paying top dollar clearly places Hogan in a second tier.
The message is loud an clear for all law students and laterals considering the DC market: WORK FOR A NYC-BASED FIRM OR RECEIVE SECOND TIER PAY!
For the amount of money on the table, the decision should be easy for any recruit with an offer on the table from a DC-based shop and a NYC-based shop.
Everyone at Hogan in DC should be outraged at this blatant attempt to discourage other DC firms from raising salaries. Hogan attempts to compete as a top 20 firm, but being the leader in resisting pay increases rather than unquestionably paying top dollar clearly places Hogan in a second tier.
The message is loud an clear for all law students and laterals considering the DC market: WORK FOR A NYC-BASED FIRM OR RECEIVE SECOND TIER PAY!
For the amount of money on the table, the decision should be easy for any recruit with an offer on the table from a DC-based shop and a NYC-based shop.
Everyone at Hogan in DC should be outraged at this blatant attempt to discourage other DC firms from raising salaries. Hogan attempts to compete as a top 20 firm, but being the leader in resisting pay increases rather than unquestionably paying top dollar clearly places Hogan in a second tier.
The message is loud an clear for all law students and laterals considering the DC market: WORK FOR A NYC-BASED FIRM OR RECEIVE SECOND TIER PAY!
For the amount of money on the table, the decision should be easy for any recruit with an offer on the table from a DC-based shop and a NYC-based shop.
Prediction: mass exodus
Everyone at Hogan in DC should be outraged at this blatant attempt to discourage other DC firms from raising salaries. Hogan attempts to compete as a top 20 firm, but being the leader in resisting pay increases rather than unquestionably paying top dollar clearly places Hogan in a second tier.
The message is loud an clear for all law students and laterals considering the DC market: WORK FOR A NYC-BASED FIRM OR RECEIVE SECOND TIER PAY!
For the amount of money on the table, the decision should be easy for any recruit with an offer on the table from a DC-based shop and a NYC-based shop.
Prediction: mass exodus
Everyone at Hogan in DC should be outraged at this blatant attempt to discourage other DC firms from raising salaries. Hogan attempts to compete as a top 20 firm, but being the leader in resisting pay increases rather than unquestionably paying top dollar clearly places Hogan in a second tier.
The message is loud an clear for all law students and laterals considering the DC market: WORK FOR A NYC-BASED FIRM OR RECEIVE SECOND TIER PAY!
For the amount of money on the table, the decision should be easy for any recruit with an offer on the table from a DC-based shop and a NYC-based shop.
Prediction: mass exodus
A firm's failure to jump on board with salary increases would be easier to swallow if pay scales were adjusted annually for cost of living. Since they aren't, and since salary increases like this only come around every few years on average (with these back to back increases making up for years without change), it's outrageous that firms don't match.
Dissed in DC: Simmer down. Presumably if you're working at Hogan DC, you've got choices. Vote with your feet and quit bitching about it.
Dissed in DC:
I couldn't agree more. Hogan may have single-handedly screwed many DC associates. They can't truly consider themselves a top-tier, A-list firm if they don't match salaries or atleast bring them to 150k. I think the new Vault rankings will reflect the salary gap and I believe that firms that don't step up will be dismayed by their precipitous drop in the rankings. Does anyone really believe that the big DC firms don't have the resources to do this? I think an exodus to DC offices of NY-based firms is on the horizon.
Everyone at Hogan in DC should be outraged at this blatant attempt to discourage other DC firms from raising salaries. Hogan attempts to compete as a top 20 firm, but being the leader in resisting pay increases rather than unquestionably paying top dollar clearly places Hogan in a second tier.
The message is loud an clear for all law students and laterals considering the DC market: WORK FOR A NYC-BASED FIRM OR RECEIVE SECOND TIER PAY!
For the amount of money on the table, the decision should be easy for any recruit with an offer on the table from a DC-based shop and a NYC-based shop.
Prediction: mass exodus
A firm's failure to jump on board with salary increases would be easier to swallow if pay scales were adjusted annually for cost of living. Since they aren't, and since salary increases like this only come around every few years on average (with these back to back increases making up for years without change), it's outrageous that firms don't match.
Everyone at Hogan in DC should be outraged at this blatant attempt to discourage other DC firms from raising salaries. Hogan attempts to compete as a top 20 firm, but being the leader in resisting pay increases rather than unquestionably paying top dollar clearly places Hogan in a second tier.
The message is loud an clear for all law students and laterals considering the DC market: WORK FOR A NYC-BASED FIRM OR RECEIVE SECOND TIER PAY!
For the amount of money on the table, the decision should be easy for any recruit with an offer on the table from a DC-based shop and a NYC-based shop.
Prediction: mass exodus
A firm's failure to jump on board with salary increases would be easier to swallow if pay scales were adjusted annually for cost of living. Since they aren't, and since salary increases like this only come around every few years on average (with these back to back increases making up for years without change), it's outrageous that firms don't match.
I will be summering at a big DC firm that has not announced yet. If the firm doesn't match, I am inclined to go to another DC office upon graduation. There is no reason why I should be paid less than classmates of mine who haven't done as well, but have the good fortune of working at less presigious DC firms who have decided to step up.
Dissed in DC --
If you want to work NY hours for an NY-based firm for an NY salary, go ahead and switch firms. Regardless of the pay differential, many would choose DC hours at a DC-based firm for a DC salary.
To me, it would take a lot of money to make up for the personal cost of leaving the office at 9-10pm instead of 7-8pm each night. I know I'm not alone in that view.
Have a post that summarizes all the firms in DC that are now paying $160k. Legal Times is wrong -- there are more large offices than Skadden DC paying $160k now. Call out Hogan on its lie that they do not need to raise the 135k salary to remain competitive.
I fear many DC firms will have horrible attrition problems from the upcoming summer classes if they are not realistic about the need to bump up salaries.
To hell with that, 25 thousand is more than enough to make me work 1-2 more hours per day. Might be my military training, but if I am in at work at 8AM (not tht unreasonable) I can put in 12 hours (10 of which would be billable) and be home in time to watch the Terps pounce another ACC team.
I don't know about you, but I know the price of my soul.... its 160K
Fried Frank matched for all NY and DC associates across the board. The FF memo posted includes DC associates.
Can someone post all of the DC firms at 160?
When I chose between going to a NY firm or to Hogan, I didn't mind the smaller salary differential because I preferred the work in DC. But to have my friends making 25K more - when the hours are not that much better, the bonuses in DC are smaller, and the cost of living is still high -- well, it is disspointed. Plus, it feels like Hogan is sending a message to the other firms not to raise pay so that they have cover. Hogan is a national firm and certainly A list in DC. But, after this, the rankings will go down and for better or worse, 2Ls will hear about it and go elsewhere. I am dissapointed. Especially since it was rising in the rankings with respect to associate satisfaction, etc. Poor managerial choice.