I think a lot of people figuring cost-of-living difference are forgetting to figure taxes as well. With fully 40% of any attorney's salary going to taxes, you have to knock that off the difference in salaries and then figure general cost-of-living stuff there, i.e. you only get about 18K of any 30K difference in rates. At those rates, I think NY can easily sit at 30K above the other regions without a lot of movement among attorneys. But that's not what anyone here really probably wants to hear, nor is it in anyone's interest to say so... given that we all hope the firms are reading these posts and getting nervous.

Does anyone else feel they know too much about David Lat's dental health?

As soon as one firm in a non-NY market raises, the market pressure is there. For example, I have an offer from an LA firm, and if they don't match, then I'll be interviewing with Quinn.

Taxes are relative. For those of us currently at the $135,000 scale, a jump to $160,000 would be more than $1000 a month after taxes - not chump change.

Seriously - you really don't care about getting $18k? So if you get a $30k raise, you're happy to give away the additional after tax income? It will make no difference on your student loans or house down payment or life in general? Because I have found that $18k is a nice thing to have.

Also, it's not just a 15K raise. For Class of 2003, I believe market previously was 185K--it's a 25K raise for that class.

NYC (plus NY state) taxes are only 1.8% higher than DC taxes. So that doesn't explain much.

But in the broader sense, you are correct. Because of taxes, it takes a bigger raise to actually make a material difference in an associate's life.

$18K = 3/4 of my rent for one year, which basically means that if I get the raise to $160,000 it'll be as though I am at the old payscale with NO expenses for rent/mortgage. I can use that to pay down my student loans. THAT is significant.

3:24, the point is the 18K is then what's left over to deal with the cost-of-living difference between New York and other locales --- not 30K. As for the non-NYs, I agree it is the number of them that raise to 160 that really lead to the pressure. If only one or two without many associate spots, it won't be much pressure.

You know, what's being forgotten is that just 13 months ago, almost all firms, no matter where the office was located, were at 125k (excluding the obvious firms, like Skadden, Wachtell). It wasn't until last January that the NY market took the 10k leap over most of the rest of the company. Also, it seems ridiculous for the Big 3 to only go to 145, when lesser firms, like Dewey, are going to 160 in Cali. It won't sit well with associates at the big 3 to know that they're classmates, who couldn't have gotten their jobs, are making significantly more money.

Does anyone really believe that someone at Latham, or OMM, wouldn't be able to lateral to Dewey? Please.

And what's the justification for the Big 3 to not go to 160 when the have higher PPP's than many of the firms that have made that jump? Doesn't make any sense.

And going to 145k, c'mon that's a second class half measure.

I've never bought the cost of living argument. It's more expensive to live in NYC because it's more desirable to live there. So what if you can only afford to live in a small studio, you live in NYC! Stop thinking you deserve more money than DC or Boston, you don't. We, living outside of NYC, have the same billing rates and bill just as much as you; thus we are just as profitable (probably more profitable because or commerical rents are lower). Stop complaining that your law school friends who moved to DC live in nice homes or condos while you're paying too much rent for too small a place. You have NYC, we don't.

Weil Gotschal has matched.

I've never bought the cost of living argument. It's more expensive to live in NYC because it's more desirable to live there. So what if you can only afford to live in a small studio, you live in NYC! Stop thinking you deserve more money than DC or Boston, you don't. We, living outside of NYC, have the same billing rates and bill just as much as you; thus we are just as profitable (probably more profitable because or commerical rents are lower). Stop complaining that your law school friends who moved to DC live in nice homes or condos while you're paying too much rent for too small a place. You have NYC, we don't.

I've never bought the cost of living argument. It's more expensive to live in NYC because it's more desirable to live there. So what if you can only afford to live in a small studio, you live in NYC! Stop thinking you deserve more money than DC or Boston, you don't. We, living outside of NYC, have the same billing rates and bill just as much as you; thus we are just as profitable (probably more profitable because or commerical rents are lower). Stop complaining that your law school friends who moved to DC live in nice homes or condos while you're paying too much rent for too small a place. You have NYC, we don't.

I've never bought the cost of living argument. It's more expensive to live in NYC because it's more desirable to live there. So what if you can only afford to live in a small studio, you live in NYC! Stop thinking you deserve more money than DC or Boston, you don't. We, living outside of NYC, have the same billing rates and bill just as much as you; thus we are just as profitable (probably more profitable because or commerical rents are lower). Stop complaining that your law school friends who moved to DC live in nice homes or condos while you're paying too much rent for too small a place. You have NYC, we don't.

Anon 3:33's post is on point.

Weil Gotschal has matched

3:24

but higher NY taxes are one of the reasons why NY has a higher COL ... after taxes are taken out of consideration, the COL difference between NY and other major cities closes ... so your advice to only look at post-tax income only makes sense if you're going to look at post-tax COL differences too

http://www.law.com/jsp/dc/PubArticleDC.jsp?id=1169719347534

http://www.law.com/jsp/dc/PubArticleDC.jsp?id=1169719347534

One potential justification: NY associates are billed to clients at a higher rate than LA/DC/SF/Chi associates, so they make more money for the firm. This translates to more money for the associate.

3.41 "after taxes are taken out of consideration, the COL difference between NY and other major cities closes"

Are you serious?! Yes, the Federal/State/City taxes are an issue, but the cost of housing, groceries, dry cleaning, restaurants, bars, etc. are also higher in NY.

I'm not suggesting this is a reason to pay NYC associates more, but associates in NYC are left with less after tax than those elsewhere, and then have to spend more too.

That said, I live here because it's cool.

so is OMM pretending that bumping to $145 is somehow a good thing? $15k a year less than my neighboring associate who could not get a job at my firm but works for an NY based joint?

Anon at 3:33: ordinarily I would agree with you, but I wonder if perhaps we're looking at this backwards. Dewey raising all across like this, and so early in the game relative to a lot of other players (which doesn't usually happen, I mean Dewey has historically been in the middle of the pack when it comes to these things) might be an indication it's on the up and up. They posted huge profits this year and, let's not forget, they were one of the first firms to announce nationwide increases, and an increase in the UK, last year when the salaries went up.
Besides, I know people who got offers at OMM and Latham who did not get offers at Dewey... they seem to pay a lot more attention to well-rounded lawyers as opposed to the usual Wachtel types (although I'm assuming they would froth at the mouth to get some of those guys too!)
Either way, I'm typing away at my non-matching firm and I'm bitter as hell...

But that is one of the reasons there is pressure to pay more in NY. More and more people are realizing that quality of life is much better in other cities. Your salary goes a lot farther and, in some cases, you work significantly less. NY is a cool place to live, but isn't Boston, DC, LA, San Fran, Chicago, etc.? And, when you are constantly working (so you can afford that outrageously-priced studio), how do you take advantage of all that NY has to offer. Associates and law students have begun to realize that living in some of the above-mentioned cities provides a better lifestyle, often without sacrificing prestige. It isn't enough anymore just to say: come to NY; it is the top legal market; this is where you want to be. Now, more than ever, the hook has to be the dollars.

Apparently we have run out of new information, and are now arguing the merits of individual cities...

We are approaching the 72 hour mark since Simpson's announcement (4.28 pm). Hopefully, we have some new matches to discuss before the end of the day.

"I've never bought the cost of living argument. It's more expensive to live in NYC because it's more desirable to live there. So what if you can only afford to live in a small studio, you live in NYC! Stop thinking you deserve more money than DC or Boston, you don't. We, living outside of NYC, have the same billing rates and bill just as much as you; thus we are just as profitable (probably more profitable because or commerical rents are lower). Stop complaining that your law school friends who moved to DC live in nice homes or condos while you're paying too much rent for too small a place. You have NYC, we don't."

More profitable? Get real and look up profits per partner- Boston and D.C. are not topping per partner profits in NY.
As for not "buying the cost of living argument"- what's not to buy? Commuting (whether it's a subway pass, commuter rail or cabs) costs more, we pay city taxes, basic thing slike groceries cost more, we pay more per square foot of living space, more to go out (whether it's dinner or just drinks), etc. Most of my friends in Boston & D.C. are at top firms and are considered superstars if they bill 2000 a year- that's considered a lifestyle firm in NY.

Weil Gotschal has matched

so, not even an adjustment for UK associates??

Another point getting overlooked, at least to some extent, is most top tier NYC firms/offices, pay higher bonuses. Generally around $10k more. Doesn't that help cover COL, billing rate, hour differentials? On top of that, I can't speak for everyone on the WC, but I think most would be okay with remaining 10k in base, and lower bonuses, it's more the feeling that we're falling farther behind, and also behind firms that we may have turned down originally.

As for COL, sure NYC is higher than LA, but SF is pretty damn close across the board, whether it's rent (obviously no one in either city can buy), eating out, or going out. Sure drinking may be a little more expensive, given that everybody in NYC insists on bottle service, but isn't that a personal choice? Are we really supposed to feel bad because you guys insist on going to the whatever the current Meat Packing District hot spot is?

Lastly, the tech sector out here is picking back up, IPO's are up, hedge funds are growing, as are VC firms, so don't act like the only other opportunities are in NYC (not to mention the hedgies are in Connecticut, enjoy the commute).

If firms are going to market themselves as S&C, STB, Skadden's, Dewey's equals, they need to step up, and match (or at least keep the status quo, of $10k less, though there will be far more "above market" firms after this round, I think, than before). Otherwise, I feel like the big 3's positions in the v20 are tenuous, at best.

Re Jen Jones - Yep. That's all correct.

Hogan & Hartson DC just went up.

145 for 1st year
155 for 2nd year
170 for 3rd year
190 for 4th year
210 for 5th year
225 for 6th year
240 for 7th year
250 for 8th year and above

Hogan just matched O'Melveny in DC. Starting at $145 in DC.

As a 2L working in LA this summer, I definitely feel vindicated by my choice of S&C over the so-called "Big 3." If OMM only raised to 145 then the other two won't go any higher, at least in Cali.

As a 2L working in LA this summer, I definitely feel vindicated by my choice of S&C over the so-called "Big 3." If OMM only raised to 145 then the other two won't go any higher, at least in Cali.

As a 2L working in LA this summer, I definitely feel vindicated by my choice of S&C over the so-called "Big 3." If OMM only raised to 145 then the other two won't go any higher, at least in Cali.

Hogan & Hartson DC just went up.

145 for 1st year
155 for 2nd year
170 for 3rd year
190 for 4th year
210 for 5th year
225 for 6th year
240 for 7th year
250 for 8th year and above

Jen Jones:

Unless you're at Dinky Smalls & Shrunk, 2000 hours doesn't get you superstar status in D.C. It gets you not fired with a $5K bonus.

Get real.

"I know people who got offers at OMM and Latham who did not get offers at Dewey... "

Really? Did he/she drool during the Dewey interview?

At my DC firm 2000 hours gets you $20K as a first year.

Anon 3:46

Some national firms have higher billing rates in NY than elsewhere ... many do not. For example, at my firm, associate billing rates are identical in NY, DC and LA, lower in other cities.

A great deal of legal work can be done anywhere regardless of the geography of the case. For example, the matter that has taken up most of my time over the past 12 months has been for a NY-based client in an IN court dealing with transactions taking place in all 50 states. And with the exception of a few trips for depos, I've done all the work in LA.

I suspect that the real reason for salary differentials betwen NY and other cities is not COL or different billing rates or hours expectations, but rather due to the existence of many more in-house opportunities for NY associates than in other markets, especially on the corporate side.

LA, quite frankly, is a corporate backwater, in terms of the corporations and financial organizations that are based here. So there isn't much out there for a mid-level big-firm corporate associate seeking an in-house position, unless he or she is willing to change cities. Which is harder to do after you've been in place for a few years and have a wife and kids.

There are far more entities based in and around NYC than in other cities that can offer lucrative in-house opportunities. Thus, the risk that a mid-level makes a break for such an opportunity is higher than in NYC than in other cities. In order to handle that risk differential, NY firms/offices must offer higher salaries to NY associates than they do to other offices.

Is there a Hogan DC memo to post?

Firms don't raise salaries because you have a high cost of living. They don't care about your cost of living.

They raise salaries when they think not being competitive will hurt them financially. Unless it hurts recruiting in a way that ultimately affects the firm, they don't care about your condo...

Hogan go to 145 in all non-NY US offices?

Puh-leeze: I realized after posting that I was talking about Dewey New York vs. Latham or OMM New York. Clearly that would never happen in Cali. Dewey on the up and up referring to east coast etc. They definitely don't have a big enough presence out West, and their solution to that (the merger) fell through...

Has Thacher Proffitt & Wood matched?

Has Thacher Proffitt & Wood matched?

Has Thacher Proffitt & Wood matched?

Hey Cold and Hungry: 2000 hours? At Latham, 2k hours last year would have gotten you $27,500 in DC. What firm do you work at that 2k gets you "not fired and 5k"? I recomend you leave.

Has Thacher Proffitt & Wood matched?

Has Thacher Proffitt & Wood matched?

Hill & Barlow just matched in Boston.

What about us poor lawyers in Miami. Miami never gets in on these bumps. Do you know how expensive a good SPF sunblock is these days. Skin cancer awareness has made the cost of living in Miami skyrocket. And don't even get me started on the high cost of dry cleaning my beach towels. Miami better bump too!

I would lay odds that Hogan has now set the DC standard, which other firms will match. DC was already 10K behind NY, so going to $15K behind isn't that much worse. Partners will justify it by saying the markets are different (which they are) and noting that DC lagged behind NY for a long time before there was a short time of effective parity from 2000-05.

$25K behind, on the other hand, looks really bad, particularly when you have a NY office and must raise to match that market, meaning that if you did not raise DC at all your first years in NY would make what your third years in DC make. This raise will give the DC associates something to console themselves with, because they weren't counting on the 160 in the first place.

What about us poor lawyers in Miami. Miami never gets in on these bumps. Do you know how expensive a good SPF sunblock is these days. Skin cancer awareness has made the cost of living in Miami skyrocket. And don't even get me started on the high cost of dry cleaning my beach towels. Miami better bump too!

What about us poor lawyers in Miami. Miami never gets in on these bumps. Do you know how expensive a good SPF sunblock is these days. Skin cancer awareness has made the cost of living in Miami skyrocket. And don't even get me started on the high cost of dry cleaning my beach towels. Miami better bump too!

Anyone White & Casers or Clifford Chancers out there who wanna post exact times their memos went out? Other magic circlers like me are sure to be interested. C'mon FBD!

What about us poor lawyers in Miami. Miami never gets in on these bumps. Do you know how expensive a good SPF sunblock is these days. Skin cancer awareness has made the cost of living in Miami skyrocket. And don't even get me started on the high cost of dry cleaning my beach towels. Miami better bump too!

Any idea whether firms will be adjusting expat packages along with raising base salaries?

Breaking: Quinn raises summer salaries to $3080/wk!!! (MSM sources: PLEASE CREDIT THE XOXO READER. Thank you.) http://xoxoreader.blogspot.com/2007/01/quinn-raises-summer-salaries-to-3080wk.html

What about us poor lawyers in Miami. Miami never gets in on these bumps. Do you know how expensive a good SPF sunblock is these days? Skin cancer awareness has made the cost of living in Miami skyrocket. And don't even get me started on the high cost of dry cleaning my beach towels. Miami better bump too!

Miami -

you should join Weil's miami office. their bump is across all US offices

JUST GIVE ME MY MONEY!!!!!!!!!!!!!!!

People, HIT POST ONCE ONLY! The server sucks but if you come back in a few minutes your message is posted even if you get an error.

OMM CA & DC Offices just went up.

145 for 1st year
155 for 2nd year
170 for 3rd year...

Let the CA salary wars begin.

Any idea whether firms will be adjusting expat packages along with raising base salaries?

What type of bonuses does Weil's Miami office traditionally give?

4:23 You are right that firms don't care about associates' cost of living, but differences in cost of living go into the competitiveness calculus and the supply of associates available in a locale. Firms know that, and so it does matter.

One Left-Coast Firm Matches Associate Pay Hike, Others Hedge

New York Lawyer
January 25, 2007
Reprints & Permissions

By Kellie Schmitt and Zusha Elinson
The Recorder

LOS ANGELES — After two days of watching New York, the first California-based firms made their moves Wednesday, charting two separate paths for associate compensation.

Los Angeles-based Quinn Emanuel Urquhart Oliver & Hedges moved to the higher New York scale in all of its offices. But O'Melveny & Myers, while saying it would match in New York, will pay its California first-years $145,000.

That's still a raise, though not nearly as big as the one New Yorkers are getting. At Morrison & Foerster, which is matching in New York, California starting pay will remain $135,000, at least for now.

Most California-based big firms are paying fourth-years $175,000 and seventh-years $215,000. The new O'Melveny California scale puts fourth-years at $190,000 and seventh-years at $240,000. In New York, the new scale — adopted Wednesday by Skadden, Arps, Slate, Meagher & Flom and others — has fourth-years at $210,000 and seventh-years at $265,000.

Although MoFo matched in New York on Wednesday, firm Chairman Keith Wetmore said it would wait until there was more movement to announce new associate salaries in California.

Orrick, Herrington & Sutcliffe Chairman Ralph Baxter Jr. said that how firms respond will determine their standing in an ever more segmented legal marketplace. "This is a significant market development," said Baxter, who had not announced any moves as of late Wednesday. "We are aimed unequivocally at the high-end."

Link to: The full story

OMM CA & DC Offices just went up.

145 for 1st year
155 for 2nd year
170 for 3rd year...

Let the CA salary wars begin.

What about us poor lawyers in Miami. Miami never gets in on these bumps. Do you know how expensive a good SPF sunblock is these days? Skin cancer awareness has made the cost of living in Miami skyrocket. And don't even get me started on the high cost of dry cleaning my beach towels. Miami better bump too!

I still haven't heard of any movement in Chicago. I'm a little surprised that Kirkland and/or DLA Piper haven't announced something in Chicago yet. Chicago is looking increasingly cheap with no announcements. Anyone have any info about whether any Chicago firms are about to give a raise?

the OMM CA & DC news is old news

Nothing in Chicago yet, eh? Sidley, Kirkland and others haven't even moved their NY scales yet.

4:50, this is old news. OMM deflated the morale of CA associates yesterday afternoon after Quinn had given us hope.

OMM's raise to $145,000 happened yesterday. Hardly new.

Odds that Cravath Won't match?
Odds that Cravath will raise?

15k difference in dc does look bad. associates at lower-ranked firms getting paid 10% more just because of NY headquarters?

The silence from Latham/Gibson and KE/Sidley is telling. They are likely trying to gauge whether to just match OMM or go up to the big time. Otherwise, they would have simply matched by now (especially Latham/Gibson).

4:47, yes-- but it only matters to the extent that it affects recruiting in a way that affects the bottom line. They have absolutely zero interest in your problems in the abstract. The Bay Area is roughly as expensive as New York-- if they care about COL, associates would get paid the same. But the firms haven't been forced to do that either by firm competition or in-house competition.

Put another way, DC might be about a third cheaper than NYC, but good luck trying to staff a DC office paying first-years $110k.

Odds that Cravath Won't match? 100%
Odds that Cravath will raise? 0%

Don't know what Gibson is going to do but Latham is going to match NY. They consider themselves peers with Simpson & S&C more than with OMM. They want to remain in the top 10 (8).

Proskauer announced

5:04 - they will certainly match in NYC, i think there is a major question whether they will match NY pay in CA, they did not this year

Putting aside my own selfish reasons, I'd really like to see Cravath raise. It would be interesting to see who would follow at $170 or so.

Any word on Boston firms? Ropes, Goodwin?

Proskauer announced

I wish you were right, 5:04, but the last time around LW only raised NY to 145, and the rest of their offices to 135. Unlike the NY firms which have small DC satellites, LW is a 1700 lawyer firm, so the extra 15k to non-NY offices would cost them some serious dough. I smell a 145 match outside of NY.

Employee: got proof of Proskauer? what are the numbers? all across US?

Proskauer matched. Confirmed

Any word on Boston firms? Ropes, Goodwin?

Why is anyone looking for Cravath to outdo Simpson and the other top tier firms? Isn't the notion that Cravath is at the top of the heap an outdated one?

Is there any way Cravath won't match? Isn't it only a question of it they will raise?

Regarding bonuses in other offices: Dewey pays the same bonus to all US and UK associates i.e. New York market rate bonuses. I suspect most other Big NYC firms do the same.

As far as Latham is concerned, I don't think the silence is telling. They are almost certainly just making the announcement along with bonuses on Friday, and they will certainly match in NY/UK, no question. The open question is whether they will take the opportunity in CA to pull away from OMM, making good on their "one firm" philosophy at the same time they reiterate their national-player status. Otherwise it will seem like an admission that they just are not on par with the rest of their V10 peers.

can we get a proskauer memo up with time stamp? hopefully this well pressure cravath, debevoise, et al.

S&C salary update: associates just received our individual memos.

class of 2000: $270K
class of 1999: $290K
class of 1998: $310K

Regarding bonuses: Dewey pays the same to all US and UK associates regardless of location i.e. everyone gets the NY market rate (with the usual caveats i.e. good standing, etc.) and there is extra cash for those who work extra hard/do a good job.

When did hogan match for NY assoc? yesterday or today? sending resume...now.

"The silence from Latham/Gibson and KE/Sidley is telling. They are likely trying to gauge whether to just match OMM or go up to the big time. Otherwise, they would have simply matched by now (especially Latham/Gibson)."

Let's hope they raise. They being Gibson, considering how cheapo Latham is...

Anyone think Dewey did this to make prospective associates forget what a mess became of their failed merger with Orrick? If someone else has made this point, I apologize -- a lot of comments flying around....

All of the NY associates need to stop asing if there's any news about their firm. Cravath, Debevoise, Davis, Latham...they're all going to match. They always do because they have to. No one wants to be the only one of its peers who pays less than everyone else. It doesn't make business sense. Enough already.

Any thoughts / knowledge about Thacher Proffitt?

DC Dude:

Not really. Dewey didn't do anything that everyone else in NYC isn't doing. It would have been pretty shameful for them not to match.

Anyone in Boston hear anything yet - other than Weil and Skadden outposts?

Proskauer - did they just match in NY or elsewhere, i.e. Boston - or get a bump?

any word on the other magic circle firms?

we raised.

Michael Brown, PC just matched.

any word on the other magic circle firms?

Proskauer Hosed just matched.

DC Dude and Anon at 5:24: I think DC Dude's point is that they did it so early, when they usually wait a while to do this kind of thing. But I don't think it's to make ppl forget what a mess it was but probably to make the point that they are not any worse off, contrary to the bad publicity, and continue to be a top enough firm that it can make these decisions after 5-6 firms announce without waiting for the rest of the pack.

curious to see what the AmLaw 100 firms with HQ's outside of DC, NY, Cali or Chicago do ...

Alston Bird? Jones Day? Troutman? Holland+Knight? KS Gates? Reed Smith? Venable? McGuire? Hunton?

No ways these guys have the PPP to pay these salaries firmwide, but do they raise in the big cities and screw over the hometown? Do they even compete with the NY and DC firms?

This post over on GA Boston has the scoop on Proskauer:

http://www.infirmation.com/bboard/clubs-fetch-msg.tcl?topic=Greedy%20Boston&msg_id=0036KU

UMM Where the hell is Orrick? So much for their big shot smack during the merger talks and after. I guess quiet and sturdy NY firm is always better than loud and annoying NY wannabes.

PEOPLE: WE NEED PROOF...HARD NUMBERS...OFFICES INCLUDED IN THE RAISE.

Sorry I meant smack talk.

we should raise to $200k to see how far this can go!

DPW just matched.

One Left-Coast Firm Matches Associate Pay Hike, Others Hedge

New York Lawyer
January 25, 2007
Reprints & Permissions

By Kellie Schmitt and Zusha Elinson
The Recorder

LOS ANGELES — After two days of watching New York, the first California-based firms made their moves Wednesday, charting two separate paths for associate compensation.

Los Angeles-based Quinn Emanuel Urquhart Oliver & Hedges moved to the higher New York scale in all of its offices. But O'Melveny & Myers, while saying it would match in New York, will pay its California first-years $145,000.

That's still a raise, though not nearly as big as the one New Yorkers are getting. At Morrison & Foerster, which is matching in New York, California starting pay will remain $135,000, at least for now.

Most California-based big firms are paying fourth-years $175,000 and seventh-years $215,000. The new O'Melveny California scale puts fourth-years at $190,000 and seventh-years at $240,000. In New York, the new scale — adopted Wednesday by Skadden, Arps, Slate, Meagher & Flom and others — has fourth-years at $210,000 and seventh-years at $265,000.

Although MoFo matched in New York on Wednesday, firm Chairman Keith Wetmore said it would wait until there was more movement to announce new associate salaries in California.

Orrick, Herrington & Sutcliffe Chairman Ralph Baxter Jr. said that how firms respond will determine their standing in an ever more segmented legal marketplace. "This is a significant market development," said Baxter, who had not announced any moves as of late Wednesday. "We are aimed unequivocally at the high-end."

kaye scholer matches!

In the New York Lawyer article up at 4:47 Orrick weighs in with some more smack talk.

Quotes like that just might be the kind of signalling that could get the behemoths like Latham and Gibson to ante up and make OMM look bad. It would only take topping OMM, not necessarily matching NY.

who is DPW?

Miami question -

Weil's salary and bonus are the same across all US offices, i.e. NY-level salary and bonus for Miami

Re: 2007 Salaries

To: New York, Los Angeles and Boston Associates

CC: Partners, Senior Counsel

From: The Executive Committee

Date: January 25, 2007

We are pleased to announce that we have increased compensation effective January 1, 2007, as follows:
Class Year Adjusted Base Salary
2006 $160,000
2005 $170,000
2004 $185,000
2003 $210,000
2002 $230,000
2001 $250,000
2000 $265,000
1999 $280,000
1998 and earlier $290,000

This increase is retroactive to January 1, 2007, and will be reflected in the February 15, 2007 payroll. Bonuses for 2007 will be determined at year-end, as usual.
Base salaries and compensation for Senior Counsel will continue to be determined on an individual basis.
We continue to highly value your contributions to the Firm and thank you for your dedication and hard work. We look forward to another successful year.

Did DPW (Davis Polk) for all offices or just NY?

DPW is davis polk and wardwell

5:43, wanna name the firm?

What firm is the 5:43 memo for?

what firm was that 5:43 memo posting from?!?!?!?

w00t kaye scholer!!!

I am guessing it's Proskauer's...who else has NY, Boston, and LA offices?

5:43 pm memo is Proskauer

23rd year associates (there are a few) at Proskauer are getting screwed!

kaye scholer memo available?

I can confirm re: DPW. The e-mail from the Management Committee said:

We are pleased to announce that associate base salaries will be increased as follows, effective January 1, 2007:
Class of 1998 - $290,000

Class of 1999 - $280,000

Class of 2000 - $265,000

Class of 2001 - $250,000

Class of 2002 - $230,000

Class of 2003 - $210,000

Class of 2004 - $185,000

Class of 2005 - $170,000

Class of 2006 - $160,000

Entering Class of 2007 - $160,000

As always, we appreciate your efforts.

One Left-Coast Firm Matches Associate Pay Hike, Others Hedge

New York Lawyer
January 25, 2007
Reprints & Permissions

By Kellie Schmitt and Zusha Elinson
The Recorder

LOS ANGELES — After two days of watching New York, the first California-based firms made their moves Wednesday, charting two separate paths for associate compensation.

Los Angeles-based Quinn Emanuel Urquhart Oliver & Hedges moved to the higher New York scale in all of its offices. But O'Melveny & Myers, while saying it would match in New York, will pay its California first-years $145,000.

That's still a raise, though not nearly as big as the one New Yorkers are getting. At Morrison & Foerster, which is matching in New York, California starting pay will remain $135,000, at least for now.

Most California-based big firms are paying fourth-years $175,000 and seventh-years $215,000. The new O'Melveny California scale puts fourth-years at $190,000 and seventh-years at $240,000. In New York, the new scale — adopted Wednesday by Skadden, Arps, Slate, Meagher & Flom and others — has fourth-years at $210,000 and seventh-years at $265,000.

Although MoFo matched in New York on Wednesday, firm Chairman Keith Wetmore said it would wait until there was more movement to announce new associate salaries in California.

Orrick, Herrington & Sutcliffe Chairman Ralph Baxter Jr. said that how firms respond will determine their standing in an ever more segmented legal marketplace. "This is a significant market development," said Baxter, who had not announced any moves as of late Wednesday. "We are aimed unequivocally at the high-end."

Davis Polk matched.

We're back. In case it hasn't been posted already, here's the Kaye Scholer memo:

KAYE SCHOLER LLP

We are pleased to advise that the Firm is raising associate salaries for the Classes of 2006 through 1999 to reflect the competitive market . The new salaries in New York are as follows:

Class of 2006--$160,000

Class of 2005--$170,000

Class of 2004--$185,000

Class of 2003--$210,000

Class of 2002--$230,000

Class of 2001--$250,000

Class of 2000- $265,000

Class of 1999--$280,000

We will also be raising associate salaries for offices outside of New York but we have not yet determined what those salaries will be. Once they are determined, the heads of your offices will let each of you know the new salary levels. All salary adjustments for all offices will be effective as of January 1st.

To the extent adjustments are needed in order to raise salaries for junior counsel or senior associates above the 8th year class, any such adjustments will be addressed on an individual basis.

We are looking forward to another record year at the Firm and to your continued commitment to our clients.

One Left-Coast Firm Matches Associate Pay Hike, Others Hedge

New York Lawyer
January 25, 2007
Reprints & Permissions

By Kellie Schmitt and Zusha Elinson
The Recorder

LOS ANGELES — After two days of watching New York, the first California-based firms made their moves Wednesday, charting two separate paths for associate compensation.

Los Angeles-based Quinn Emanuel Urquhart Oliver & Hedges moved to the higher New York scale in all of its offices. But O'Melveny & Myers, while saying it would match in New York, will pay its California first-years $145,000.

That's still a raise, though not nearly as big as the one New Yorkers are getting. At Morrison & Foerster, which is matching in New York, California starting pay will remain $135,000, at least for now.

Most California-based big firms are paying fourth-years $175,000 and seventh-years $215,000. The new O'Melveny California scale puts fourth-years at $190,000 and seventh-years at $240,000. In New York, the new scale — adopted Wednesday by Skadden, Arps, Slate, Meagher & Flom and others — has fourth-years at $210,000 and seventh-years at $265,000.

Although MoFo matched in New York on Wednesday, firm Chairman Keith Wetmore said it would wait until there was more movement to announce new associate salaries in California.

Orrick, Herrington & Sutcliffe Chairman Ralph Baxter Jr. said that how firms respond will determine their standing in an ever more segmented legal marketplace. "This is a significant market development," said Baxter, who had not announced any moves as of late Wednesday. "We are aimed unequivocally at the high-end."

5:43 is Proskauer

what about proskauer's dc office?

We don't even get a damned vote in Congress, and now, even bottom shelf firms are dissing DC and giving love to other cities. So wrong. So very wrong.

David, how are you feeling from the dentist?

Can we get a full list?

We can't post on the main page, and it's pissing us off. But by way of recap, it looks like the following have come in this afternoon (scroll up through this thread):

1. Davis Polk
2. Kaye Scholer
3. Proskauer Rose
4. O'Melveny & Myers / Hogan & Hartson: DC, $145K

w00t Kaye Scholer!!!

I can confirm re: DPW. The e-mail from the Management Committee said:

We are pleased to announce that associate base salaries will be increased as follows, effective January 1, 2007:
Class of 1998 - $290,000

Class of 1999 - $280,000

Class of 2000 - $265,000

Class of 2001 - $250,000

Class of 2002 - $230,000

Class of 2003 - $210,000

Class of 2004 - $185,000

Class of 2005 - $170,000

Class of 2006 - $160,000

Entering Class of 2007 - $160,000

As always, we appreciate your efforts.

Re: 2007 Salaries

To: New York, Los Angeles and Boston Associates

CC: Partners, Senior Counsel

From: The Executive Committee

Date: January 25, 2007

We are pleased to announce that we have increased compensation effective January 1, 2007, as follows:
Class Year Adjusted Base Salary
2006 $160,000
2005 $170,000
2004 $185,000
2003 $210,000
2002 $230,000
2001 $250,000
2000 $265,000
1999 $280,000
1998 and earlier $290,000

This increase is retroactive to January 1, 2007, and will be reflected in the February 15, 2007 payroll. Bonuses for 2007 will be determined at year-end, as usual.
Base salaries and compensation for Senior Counsel will continue to be determined on an individual basis.
We continue to highly value your contributions to the Firm and thank you for your dedication and hard work. We look forward to another successful year.

-----Original Message-----
From: Wetmore, Keith C.
Sent: Thursday, January 25, 2007 3:05 PM
To: LIST/Non-Partner Atty/SF; LIST/Non-Partner Atty/PA; LIST/Non-Partner Atty/SA; LIST/Non-Partner Atty/WC; LIST/Non-Partner Atty/LA; LIST/Non-Partner Atty/OC; LIST/Non-Partner Atty/SD; LIST/Non-Partner Atty/DN; LIST/Non-Partner Atty/DC; LIST/Non-Partner Atty/VA
Cc: LIST/Partner/SF; LIST/Partner/PA; LIST/Partner/SA; LIST/Partner/WC; LIST/Partner/LA; LIST/Partner/OC; LIST/Partner/SD; LIST/Partner/DN; LIST/Partner/DC; LIST/Partner/VA; List/Patent/Agt/All; Office Managing Partners-US; Directors of Administration-US; Herman, Janet Stone (PA); Moser, Cheryl L.; Nashelsky, Larren M.; Reed, Pamela J.; White, Anna Erickson
Subject: 2007 Associate Compensation Announcement

I am pleased to announce our 2007 compensation for associates located in our DC, Denver, Los Angeles, Northern Virginia, Orange County, Palo Alto, Sacramento, San Diego, San Francisco and Walnut Creek offices. Base compensation increases will be implemented for each class as noted below:

Class of 2006 – $145,000
Class of 2005 - $155,000
Class of 2004 - $170,000
Class of 2003 - $190,000
Class of 2002 - $210,000
Class of 2001 - $230,000
Class of 2000 - $245,000

These adjustments to base compensation will be reflected in your February 15 paycheck retroactive to January 1, 2007. If you are not in one of the class years noted above, or you are Of Counsel or a Patent Agent, we will be following up with you separately in the next few weeks. The 2007 bonus schedule will be finalized and distributed in the near future.

On behalf of the Firm, thank you for your part in making 2006 a great year for the Firm and for your hard work and commitment to the Firm and its clients as we look to the future.

Keith

We're doing some failover testing right now, so ATL may be down intermittently over the next half hour or so. But hopefully things will be much better when we're done. Thanks for your patience.

Has Mayer Brown given a raise to its NY office?

Mofo being below $160,000 in CA is a sign to Latham and Gibson not to do it.

F@#! OMM and Mofo for basically screwing all CA associates.

As far as I know, none of the Chicago Big 3 have made any announcements about any of their offices. Sidley is usually a follower in these things, so look for Kirkland or Mayer Brown to have to jump first. Obviously they have to do something for NYC. My guess is they'll go to $160K in NYC and then follow this MoFo approach and go to $145K in Chicago and DC.

The thing is, in Chicago there are no firms paying $160,000. In LA and DC, there are some (though the DC firms seem to be more cheap than the LA firms).

anyone hear anything about secondary markets like philly? the raises should trickle down to the top firms here as well, i'd imagine?

I think that Skadden's Chicago office will probably pay $160K.

Is Mayer even paying NY old rate? Their website says pay of $125 in NY and $135 in Chicago. If they aren't paying the old rate, not sure why they would join at the new rate.

http://www.mayerbrownrowe.com/careeropportunities/city.asp?nid=1059

what about MLB?

When this all calms down, David, could you post a comprehensive list of who has raised and where and how much so I can start weighing my options - it's ridiculous to make 15K less than classmates down the street just because their firms are NY based.

Skadden's Chicago office did match. I've had it confirmed firsthand. Plus, note that some of the associates listed on the Skadden email were in the Chicago office.

The website info is old and they are aware of it but have not fixed it. Mayer Brown pays $135 in chicago and $145 in NY, and last year was one of the first to raise in Chicago. This year I think Kirkland + one other (probably Sidley) will have to jump, and then Mayer Brown will match

Or if you had bothered to click around a little on the Mayer page, you would see that they paid their 2006 summer associates $2,800 per week, which (yay math) is $145 for the year.

Is thier any doubt Kirkland NY will go to 160K?

Word in Mayer will likely match NY rates (in NY)

Mayer prob will let down their associates

I don't think any V100 firm in NY will be below 160 by the end of the month.

I would not be surprised if Mayer let its associates down. Some are so nervous that they have to settle for meals at high-end NY steak houses but pass on the Petite Syrah.

K&S NY just bumped.

Word is from reliable sources that Mayer will match in NY

I don't count on the whole V100 matching by month's end. My V100 firm doesn't pay bonus or class bump until end of Feb. (They pay the class bump retro to 1/1.) I don't expect to get the money till then, but I expect an announcement by mid-Feb.

I seriously doubt Mayer Brown will let its associates down. They just won't be the ones to take the initiative. Whatever Kirkland and Sidley do, Mayer will match. Don't expect anything before then.

Any insight into what NY mid-sized firms, who traditionally have met market, will do? Is this too much for them?

Davis Polk

Anon 6:42, do you mean King & Spalding

So I'm going to Ropes & Gray, and I kinda like them for reasons not monetary, but I'm concerned -- will they match the 160? I know they were already up to 145 for first year NY associates but will they make 160?

Ropedforlife: if you're going for reasons that are not monetary, then you shouldn't be concerned.

If Mayer won't jump first, and Sidley won't jump first (people tell me its Sidley's stated policy not to be a market leader), then its going to be up to Kirkland. They'd be making a huge mistake relegating Chicago to below California, NY, and DC. Forget bringing in anybody new from any top schools besides Chicago and Northwestern, and even those students will be fleeing to the coasts.

STOP COMMENTING ON THIS THREAD - LET'S MOVE TO THE MOST RECENT POST!

So I'm going to Ropes & Gray, and I kinda like them for reasons not monetary, but I'm concerned -- will they match the 160? I know they were already up to 145 for first year NY associates but will they make 160?

Ropedforlife WE GET IT ALREADY! Stop reposting

Skadden went up to $160K in Chicago -- they're the only ones. There is not even a rumor about Sidley, Kirkland, and Latham here. My guess is they'll hit $150K and call it a day.

Yes, Ropes will match NYC (likely tomorrow) - not sure about Boston/D.C./Cali - certain to be some bump, but $145 or $160 is unclear in those cities.

http://www.infirmation.com/bboard/clubs-fetch-msg.tcl?topic=Greedy%20Chicago&msg_id=0036LO

Looks like sidley is up to 160 in chicago. The big four or five will follow, the rest will lag a little, too rich.

But what is Sidley planning on doing in LA?

who are the big four or five in chicago?

Sidley hasn't raised in Chicago. Or if they have, they haven't told us about it!

To All US and Asia Associates and Counsel:

In response to the many questions we have received, the recently announced new compensation levels for all US and Asia associates and counsel will be reflected in your February 15 paycheck. You will also receive retroactive pay (at the new compensation level) back to January 1 in that paycheck.

Should you have any questions, please feel free to contact any member of your local Talent Development team or your office administrator.

Thank you for your patience as we work to make sure the adjustments for all of our associates and counsel are timely and in order.

Paige

8:35

big 3: kirkland, mayer & sidley

next 2: J&B and winston:

I love that the Dewey memo posted here has "HIGHLY CONFIDENTIAL" branded across the top of it.

Sidley is always slow and never a market leader.