Skaddenfreude: Morning Round-Up
Once the dust settles, we'll put up a comprehensive chart showing which large law firms have raised base salaries for which of their associates. That listing will indicate which law firms are paying the $160K salary scale across the board, which ones are doing so only in New York, and which ones are somewhere in between.
We'll publish this full law firm salary chart after more data points have materialized -- and after the situation has completely stabilized. It's theoretically possible (even if unlikely) that some firm might come along and bump rates up by another $5K or so. We're going to hold off on preparing a more elaborate chart until the final figures are in.
For now, and for your ready reference, these are the law firms that are confirmed as having recently instituted some form of associate pay raise (whether universal or New York-only):
-- Cadwalader, Wickersham & Taft
-- Cleary Gottlieb Steen & Hamilton
-- Clifford Chance
-- Davis Polk & Wardwell
-- Dewey Ballantine (actual memo here)
-- Fried Frank
-- Greenberg Traurig
-- Hogan & Hartson (additional discussion here)
-- Kaye Scholer
-- King & Spalding
-- Milbank Tweed Hadley & McCloy
-- Morrison & Foerster (NYC and non-NYC)
-- O'Melveny & Myers (additional discussion here)
-- Paul Weiss Rifkind Wharton & Garrison
-- Proskauer Rose
-- Quinn Emanuel
-- Shearman & Sterling
-- Simpson Thacher & Bartlett
-- Skadden Arps Slate Meagher & Flom
-- Sullivan & Cromwell
-- Weil Gotshal & Manges
-- White & Case
-- Willkie Farr & Gallagher
Please inform us of notable omissions, and please continue to send supporting documentation -- announcement emails and memos, or descriptions of the notification process if not made in writing -- to tips AT abovethelaw DOT com. Thanks.
Earlier: Previous announcements of law firm associate salary increases (scroll down through "Skaddenfreude" archives)
(55) Comments
S&C did bump for 1998, 1999, and 2000, right?
Any news on LeBoeuf now that so many of its peer firms have matched?
David, how come you have not acknowledged on any post that S&C has raised some years ('98,'99'00') more than any other firm?
I've noted that fact in an update to the original S&C post:
http://www.abovethelaw.com/2007/01/skaddenfreude_sc_says_charney.php
(But I wouldn't do a separate post just about that. There are a number of salary divergences once you get beyond the most junior classes.)
Does anybody know anything about the Chicago-based firms? I haven't seen or heard anything about pay raises in NY or DC (let alone Chicago). A while back there was a rumor that Kirkland raised in LA, but I am not sure that was ever confirmed.
What about Cahill? Their PPP is higher than just about anyone. Maybe they could do above market raises, in order to bring their PPP down to a level more commensurate with their Vault rankings. By beating the market, this would likely attract greater talent, which would attract more business and increase their rankings, and ultimately allow them to regain their $2M+ PPP, but this time with a greater talent pool and a higher Vault ranking to boot. Duh.
The Kirkland raise (in SF and LA) to 145 was confirmed.
http://www.law.com/jsp/article.jsp?id=1169200947627
It's interesting to note that these two offices may end up being the only two big market shops that do not get a raise in this round if K&E decides to follow the 160 in NYC, 145 elsewhere model.
WHERE ARE CRAVATH AND DAVIS POLK? Will they bump?
Where the heck is Debevoise?! They're taking their sweet time in announcing.
Davis bumped yesterday...
Theres a fair amount of discord at Kirkland over the firm-wide pay scales. The slugs in the mother ship (chi) could live with NYC getting $10k more, but raises in SF and LA didnt sit well at all. Its not like COLA is THAT much lower in Chicago...
Bottomline: Kirkland is mkt leader in Chicago and is making tons of money as a firm--hence its lofty almost top-ten spot in many rankings. Anything less than 160k in every office is a slap in the face and will severely erode kirklands ability to recruit and retain outside nyc.
Really shocking that Cravath hasn't matched yet.
Given the delay, I can only imagine that there is some internal debate. Clearly they're not debating whether to stay or match. That would be preposterous.
They must be debating whether to match or RAISE.
That's the reason for the delay.
Really, can you think of any other reason that they haven't announced already?
It is interesting that Kirkland raised to $145 in CA at least 4 days ago and, to my knowledge, has not done anything in NY or DC yet.
Didn't someone say Morgan Lewis had also matched?
Theres a fair amount of discord at Kirkland over the firm-wide pay scales. The slugs in the mother ship (chi) could live with NYC getting $10k more, but raises in SF and LA didnt sit well at all. Its not like COLA is THAT much lower in Chicago...
Bottomline: Kirkland is mkt leader in Chicago and is making tons of money as a firm--hence its lofty almost top-ten spot in many rankings. Anything less than 160k in every office is a slap in the face and will severely erode kirklands ability to recruit and retain outside nyc.
9:47AM: Look at the listing of firms in the main post: Davis Polk is already on it. If you click on the link, you get taken to their memo.
Anyone know anything about Sidley or Mckee Nelson?
Cravath has its weekly partner meeting on Monday, they'll probably announce whatever they decide after that. Internet fury aside, I doubt they think it's worth a separate meeting.
The Kirkland raises were only *reported* 4 days ago. They were made several weeks ago.
And actually, the COL *IS* that much lower in Chicago, as are the taxes. Kirkland felt justified in doing it because bonuses this year were finally truly the same across all offices. As such, Chicago associates were very comfortably paid the most in real dollars of any office.
Thacher Proffitt matched via email. Confirmed.
If someone has confirmation on Morgan Lewis, Akin Gump, or any other firms mentioned in prior comments but not on the "Confirmed" list, please send it in. Thanks.
Thacher Proffitt matched
TPW --Thacher Proffitt & Wood has matched. And someone said we weren't V20. We beat a lot of firms.
TPW - NY? Or all offices?
To: NYC Associates; DC Associates
TPW matched for 2004?
morgan hasnt matched yet
The V20 or V10 business are craps.
To 10:17,
Tell that to Michelle Martin, the head of legal personnel who confirmed it with us.
Thacher memo?
Any chance you could put the chart up sooner rather than later, David? Just in case partners from the firms that haven't moved, but might be considering (say) a larger bump in NY than elsewhere, read your blog and aren't aware that some of the largest offices outside NY (e.g., Skadden DC) have gone to NY salaries? (The comments make this point, but while it strikes me as likely that partners read your blog, it doesn't seem likely that they read the comments.)
Yeah, the partners of major firms read this blog as soon as they are done sparsing the comments on xoxo.
Any chance you could put the chart up sooner rather than later, David? Just in case partners from the firms that haven't moved, but might be considering (say) a larger bump in NY than elsewhere, read your blog and aren't aware that some of the largest offices outside NY (e.g., Skadden DC) have gone to NY salaries? (The comments make this point, but while it strikes me as likely that partners read your blog, it doesn't seem likely that they read the comments.)
This is a general site about legal gossip, much of which would be of interest to partners at law firms. So, yes, I suspect the read it. They probably don't read xoxo because it's too hard to sort out useful information from the overwhelming amount of junk, and because it's not designed for adults.
I do know the site is read by junior-ish partners here in town, as well as DOJ people. But maybe not by older or more senior partners (who aren't into blogs as much).
Having lived in NYC, SF, and Chicago, Chicago is indeed cheaper but not THAT much cheaper for an attorney's lifestyle than the other big cities. We all pay the same taxes; most of us have the same significant student loan burden; most of us don't want to live in hovels. In "real dollars" what's left after the necessities of life are paid for really isn't much different if you're a lawyer in Chicago as opposed to New York. Or LA. Or friggin Boston. Sorry to burst your bubble.
In addition, part of the "deal" in coming to Chicago instead of going to NYC or another more 'prestigious' market is that you get paid commensurate with the best big-firm lawyers in the country.
to 10:28:
So MLB did in fact match???
I know for a fact that partners (and very senior ones at that) read this site. I received a call from a name partner at my firm asking "What is that web site again that all of the associates look at to see salary increases and other law firm info?" When I told him AboveTheLaw.com, he responded that it should be called "BelowTheLaw.com"
Having lived and worked in both LA and Chicago, you won't burst my bubble. The taxes are NOT the same, sir. An associate in Chicago making $135k clears more than a similarly situated associate taking home $145k in CA. That is a fact.
And housing costs are not even in the same ballpark. Period.
Having lived and worked in both LA and Chicago, you will most certainly not burst my bubble, sir.
Taxes in CA and IL are most certainly NOT the same. An associate making $135k in Chicago will clear more than a similarly situated associate in CA making $145k. That is a FACT.
And the housing costs are not even in the same ballpark. Full stop.
Cravath memo anyone?
I happen to know for a fact that partners at law firms (and very senior partners at that) go to AboveTheLaw.com.
In fact, one senior partner at my firm called me yesterday and asked, "What is the name again of that web site that all of the associates go to for info on salary increases?"
When I told him AboveTheLaw.com, he replied, "Should be called BelowTheLaw.com."
Proskauer link is mistargeted.
One mildly amusing consequence of the technical difficulties (e.g., posts are submitted to the site but the browser nonetheless produces an HTTP 500 error) is that posters edit (or retype) their originals posts before reposting. Compare anon 11:06 and anon 11:13, in which the poster moves the "sir," fiddles a little with the language ("NOT" to "most certainly NOT"), and changes his closing ("Period." to "Full Stop."). Another example is anon 11:06 and anon 11:28, though that has only minor changes. I hope David doesn't delete *these* sorts of duplicate posts.
It was a retype. And you are easily amused.
Partners do read this. A partner at my firm read the blog and bitched about how he never got paid this much back in the day.
We're stepping away to attend a lunch event with the Honorable Janice Rogers Brown, judicial diva extraordinaire
We've been trying to create an open lunchtime thread for the longest time, but have been unsuccessful, due to the aforementioned "technical difficulties." So just keep posting your comments wherever you can, and we'll review when we return. Thanks.
Anon 11:52 has a bit too much time on his hands.
Anon 11:52 has a bit 2 much time on his/her hands.
Speaking of Chicago firms like Kirkland, where is Sidley in NY (or anywhere)?
Speaking of Chicago firms like Kirkland, where is Sidley in NY (or anywhere)?
"Speaking of Chicago firms like Kirkland, where is Sidley in NY (or anywhere)?"
Sidley ain't a leader. Sure, they'll raise, but it won't be for at least a week, probably once someone else makes a move in Chicago. They will obviously go to $160K in NY and $145 or $160 in DC, depending on what the majority seems to be doing in DC.
Even though only STB and S&C have announced it, is the assumption that everyone who raises will also raise for the '07 summer class?
2L:
Yes. It won't cost the firm that much more to raise for the summers, and failing to do so would probably be disastrous for recruiting.
Cleary sent a memo raising for summers.
Would like to see some firm, instead of raising salaries, cut the billable requirement to a humanly sustainable number.