Skaddenfreude: The Covington & Burling Memo
If you're trying to figure out what the new standard salaries are going to be in DC, it's hard to ignore Covington & Burling. Covington is regarded by many as the archetypal Washington law firm.
As previously noted in the comments, we have confirmed pay raises for Covington associates. We thank the multiple sources who sent us this memo (in various forms):
Our tipsters draw our attention to these highlights:
"Covington DC salaries are same as Hogan, but 7th and 8th years (1999 and 2000 classes) at Covington will be paid $5,000 less than at Hogan & Hartson (assuming billables of 1950 or more). No explanation provided for why senior associate salaries are now less at Covington than at Hogan.""Brussels is still being evaluated."
Because, you know, it's all about Brussels.
(53) Comments
77,000 GBP? That seems low. are those American Associates working in London or British Associates?
Well that is just bs, because the "top end of the market" in DC is $160k, set over and over again by Skadden et al
I assume those are British associates. From what I've heard, aren't American associates working in London paid on their American office's scale?
At least 10 firms are paying the $160 scale in DC, so how they can consider $145 to be the "top end of the market" is beyond me. If I were a law student looking to go to DC I would jump on Skadden, McKee, Willkie, Fried Frank or any of the other NY firms paying NY levels in DC before I went to some second-rate bucket shop paying me $15K less.
The pay discrepancy in DC between NY-based and DC-based firms is nothing new....it has been this way for many years. Why would the DC-based firms now all of a sudden feel compelled to match a NY-level pay scale? If it was affecting their recruiting they would have moved up long ago.
77,000 pounds is about $150,000 so it's not far off the NY pay scale.
There might be 10 firms in DC paying $160, but not many of them are very large (Skadden, Fried Frank, and McKee Nelson among the largest). However, I'd agree it's hard to claim you are at the top end of the market at that level of salaries.
matched.
11:48, for about 5 years, the first year salaries for DC and NY were identical. How do you explain that?
"The pay discrepancy in DC between NY-based and DC-based firms is nothing new....it has been this way for many years. Why would the DC-based firms now all of a sudden feel compelled to match a NY-level pay scale? If it was affecting their recruiting they would have moved up long ago."
Not true. Only a year ago, all the major firms in DC, except Skadden and Williams & Connelly paid $125K starting. This blatant pay gap is new. I turned down a NY based firm and there were no signficant differences in pay between that firm and the one I ultimately chose.
LeBoeuf finally matched! For NY and DC.
Were memos posted for Schulte or Cravath? I can't find them if they were.
LeBoeuf matched in DC and NY.
olshan grundman, a boutique m&A firm, pseudo-matched. all associates went up $15k.
entry-level associates now start at $150k
not bad considering there are no billables requirements and I hear the associates over there rarely work weekends and late nights.
Can someone post a comprehensive list of all DC offices paying $160?
Were memos posted for Schulte or Cravath? I can't find them if they were.
Is there a memo or anything for LLGM? what about other offices?
Is there a memo or anything for LLGM? what about other offices?
LLGM Memo--
TO: All New York and Washington, D.C. Associates
(cc: All New York and Washington, D.C. Partners)
FROM: Lawrence W. Pollack
RE: Associate Compensation Increases
This past year was a year of extraordinary growth and success for your firm,
thanks in no small part to the tremendous effort of our associates. We are pleased to announce
that we are increasing our associate salary scale in New York and Washington, D.C. to match the
increases announced by our peer firms. The salaries of each associate in the New York and
Washington, D.C. offices will be increased 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
Base salaries for associates in the Class of 1998 and more senior will be determined on an
individual basis.
These increases will be reflected in the February 15th paycheck and will be retroactive to
January 1, 2007 for associates in New York and Washington, D.C. who are in good standing. We
are delighted to have this opportunity to recognize your hard work.
"I turned down a NY based firm and there were no signficant differences in pay between that firm and the one I ultimately chose"
I guess you don't consider bonuses (which are much higher in NY) part of your compensation? dumb ass. If you're going to complain about money, don't show people why you don't deserve it.
Lat:
What happened with your hours poll? How about a summary of results for those of us still holding out hope that our penny-ante firms will up salaries?
The cost of living is so much lower in DC, though, that NY firms paying NY rates in DC are really paying their DC associates much more than their NY associates.
According to bankrate.com, 160K in Manhattan is equivalent to 112K in DC.
"I guess you don't consider bonuses (which are much higher in NY) part of your compensation? dumb ass. If you're going to complain about money, don't show people why you don't deserve it."
nice choice - you are obviously very smart, so you probably know that DC offices of NY based firms to not give NY bonus amounts to DC associates. But, because you are not a dumbass, you know this.
So are we still waiting for any Chicago firms to make a move?
chicago firms will definitely make a move, though it is sounding like it may not happen until as late as a couple weeks from now...
LeBoeuf has matched. The increase is for NY and D.C. associates (same amount). The memo was just circulated.
Chicago & LA will probably go the same way, though there is more pressure in LA to match the Simpson scale. It's unclear where either will go.
And Latham, but they will fold and give second tier raises outside NY.
If Covington has raised to 145k but pays them a bonus, and W&C pays 150k, W&C is exposing its associates to a potentially substantial differential, is it not?
What about LeBoeuf in LA?
DC Firms paying $160k:
Cadwalader
Cleary Gottlieb
Clifford Chance
Debevoise
Dewey Ballantine
Fried Frank
McKee Nelson
Milbank
Paul Weiss
Shearman & Sterling
Simpson Thacher
Skadden Arps
Sullivan & Cromwell
Weil Gotshal
Willkie Farr
Those paying $145k:
Covington & Burling
Hogan & Hartson
Morrison & Foerster
O'Melveny & Myers
http://www.autoadmit.com/thread.php?thread_id=569368&forum_id=2#7490618
I suppose LeBoeuf should be added to the $160k list.
I suppose LeBoeuf should be added to the $160k list.
Anyone know if Covington, Hogan, MoFo, and OMM pay bonuses as part of their compensation structure in DC?
1:04: I don't think they do to a greater extent than any other firm. In fact, the NYC-based firms pay higher bonuses.
77,000 GBP is starvation wages in London. Hell, it costs 5 GBP just to get a shirt laundered.
What about Gibson and LW in LA? Any news?
I realize that London is extremely expensive, but how exactly is $151,000 per year (~77,000 GBP) "starvation wages" in any city?
Any news or sense of what WilmerHale in DC will do?
I think Wilmer is waiting and hoping they can avoid $160 in DC. But I think they will have to raise, otherwise will never be able to get or keep the talent. Prestige alone is not enough
Any news on Fulbright Jaworski?
(continued from 1:59)
By raise, I mean to 160. Despite their attempts to get their PPP up, they can't low ball and risk losing people.
Hey 12:13, NY firms DO pay NY bonuses to DC associates. On top of NY base.
any one have info on the Boston market / Ropes & Gray? I'm guessing they will do whatever Wilmer does.
Also anyone know a good forum or source for the boston law crowd?
anyone hear anything about patton boggs in DC or elsewhere?
any one have info on the Boston market / Ropes & Gray? I'm guessing they will do whatever Wilmer does.
Also anyone know a good forum or source for the boston law crowd?
"Hey 12:13, NY firms DO pay NY bonuses to DC associates. On top of NY base. "
Who does? I'd like to apply.
2:32: Willkie Farr
2:32, I can also personally confirm Cadwalader and McKee.
Has anyone heard about Jones Day matching its salary?
anyone hear anything about Arnold & Porter?
to anonymous at 1:52pm:
If it costs a dollar here, it costs a pound there. Having 77,000 pounds to spend in London basically gives you the same lifestyle as you'd have with 77,000 dollars to spend in New York. (And of course with taxes it's even worse since American expats get screwed compared to expats from other countries.) Would a lawyer making $77k a year in NY be considered well off? I don't think so. Re: London prices, I already gave the shirt laundry example. The Tube, taxis, restaurants, etc., are all at least twice what NY costs, and sometimes more, for a comparable service/product. Maybe you're not starving but it's not a particularly affluent lifestyle either. Particularly when you take student loans into account. You're much better off in Chicago or Texas at $135-145k, that's for sure.
"If it costs a dollar here, it costs a pound there. "
"Re: London prices, I already gave the shirt laundry example. The Tube, taxis, restaurants, etc., are all at least twice what NY costs, and sometimes more, for a comparable service/product. "
After this blatant self-contradiction, is there any substance at all to your comment? I don't see any.
Are you fucking retarded? The point is that if something costs $5 in NY, the same product/service will cost 5 GBP in London. At the current exchange rate that’s about $10, or about TWICE the cost in NY. Please do yourself a favor and shut the fuck up, you stupid little bitch.