Skaddenfreude: The Latest Developments
Amazing! Our uncooperative servers are allowing us to post something (or so it seems). Allah be praised.
On the associate pay raise front, here's what we've heard most recently:
1. O'Melveny & Myers: They did it by voicemail, presumably to prevent forwarding of emails or cutting and pasting of text. Cute, guys.
Here's what a tipster tells us:
You're not going to get a memo, but we (NY, DC, LA) just got a voicemail left for us basically saying we're matching in NY the recent raises and LA and DC are getting bumps too. I didn't write down the numbers, but the LA and DC base salaries are not the same as for NY.
Another tipster confirms the LA and DC raises, with more detail: "O'Melveny is bumping first years from $135K to $145K in DC."
2. Simpson Thacher (summer associate addendum). This isn't exactly a surprise. But for the record:
The wave of postings and comments in response to Simpson's announcement to raise associate salaries has left some of you wondering what the application will be to the summer class. I wanted to confirm that summer associates will be paid the same salary as first year associates, prorated on a weekly basis, which is $3080 per week. A copy of our Chairman's memo appears below.We're all looking forward to seeing you soon.
All the best, Dee
Dee Pifer
Simpson Thacher & Bartlett LLP
We're working on a few other confirmations. Please continue to send us memos and other info. Thanks!
Earlier: Previous announcements of law firm associate salary increases (scroll down through "Skaddenfreude" archives)
(49) Comments
Can anybody at OMM's California offices report on the reaction there? People must be bummed out.
Weil Memo:
To: US Associates
From: Stephen J. Dannhauser
As announced at today's Town Hall Meeting, effective January 1, 2007, annual U.S. associate base salaries have been increased, as set forth below. You will receive a retroactive adjustment reflecting this increase in your paycheck or direct deposit on February 9th. Bonuses will be paid this Friday, January 26th. As we have previously told you, it is our intention to pay our associates commensurately with our peer firms.
The firm has enjoyed a very good year, and we recognize that your dedication and hard work have contributed, and will continue to contribute, to our success.
Class Year 2007 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
Base salaries for associates in the class of 1998 and more senior will be determined on an individual basis.
At 160K in New York:
Simpson
Cadwalader
Paul Weiss
S&C
Milbank
Cleary
Greenberg
Shearman
Willkie
Quinn
Dewey
Fried Frank
Skadden
Weil
O'Melveny
That's 15. Anyone else confirmed?
where is latham? this is depressing
Wilmer confirmed match in NYC?
I doubt Hunton will join, but any sense of whether they will at least bump up as a reaction to the latest raises?
what about gibson???
What about DC? Looks like Weill is at 160K as are some others. Is O'Melveny the only one at 145K?
Anyone have a list of who matched in their DC offices (and who in DC has $145K starting)?
O'Melveny bites. If they raised DC salaries to the previous NY level, they're clearly signaling that they are a second tier firm. But who cares about their reputation: I'm just ticked b/c my firm may follow their footsteps now.
People are not bummed, they're angry at OMM. Partners, prepare for insurrection.
wilmer is always slow
What about White & Case in NYC? Anyone heard anything?
Weil Memo:
To: US Associates
From: Stephen J. Dannhauser
As announced at today's Town Hall Meeting, effective January 1, 2007, annual U.S. associate base salaries have been increased, as set forth below. You will receive a retroactive adjustment reflecting this increase in your paycheck or direct deposit on February 9th. Bonuses will be paid this Friday, January 26th. As we have previously told you, it is our intention to pay our associates commensurately with our peer firms.
The firm has enjoyed a very good year, and we recognize that your dedication and hard work have contributed, and will continue to contribute, to our success.
Class Year 2007 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
Base salaries for associates in the class of 1998 and more senior will be determined on an individual basis.
When did Skadden match today and is that confirmed? I'm assuming they matched not only in NYC but across the board.
Also, when did O'Melveny officially declare this? Hopefully one of the other Big 3 (GDC or Latham) will go to current NY levels.
Ugh. I 'm guessing the OMM approach will be the one the other big CA firms take, matching in NY and raising in CA, rather than matching NY everywhere (like Quinn). Dammit.
"People are not bummed, they're angry at OMM. Partners, prepare for insurrection."
The exodus already started. There's a 3L on Greedy Associates already attempting to see if he can switch from OMM to Quinn.
Any firm worth its weight in salt should raise like all the other firms are raising in all offices - otherwise, it sends a real message. This will have a polarizing effect. All the major talent will go to the higher paying firms.
Re: the Big 3 in LA
Collusion anyone? Why would the other 2 go to nyc levels when they don't have to?
I'm only going to a 160k firm when I'm done. For sure.
I'm only going to a 160k firm when I'm done. For sure.
Any firm worth its weight in salt should raise like all the other firms are raising in all offices - otherwise, it sends a real message. This will have a polarizing effect. All the major talent will go to the higher paying firms.
Weil Memo:
To: US Associates
From: Stephen J. Dannhauser
As announced at today's Town Hall Meeting, effective January 1, 2007, annual U.S. associate base salaries have been increased, as set forth below. You will receive a retroactive adjustment reflecting this increase in your paycheck or direct deposit on February 9th. Bonuses will be paid this Friday, January 26th. As we have previously told you, it is our intention to pay our associates commensurately with our peer firms.
The firm has enjoyed a very good year, and we recognize that your dedication and hard work have contributed, and will continue to contribute, to our success.
Class Year 2007 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
Base salaries for associates in the class of 1998 and more senior will be determined on an individual basis.
"All the major talent will go to the higher paying firms."
As it should. It's ridiculous some firms are trying to get by on the cheap. Commence the exodus.
DC Increases:
Simpson
Paul Weiss (I think it's all offices)
Cadwalader
Sull Crom
Milbank
Cleary
Shearman
Willkie
Quinn Emanuel
Fried Frank
Weil
Dewey (unclear, but I think DC too)
Skadden
OMM bumped to 145
And that's it. None of these are DC based firms.
It's not collusion, it's the result of a market with near-perfect information.
Still waiting for my raise...
(visions of a new tv rapidly reducing to visions of adding simple digital cable onto the old tv...)
RE: 5:51
Quinn doesn't even have a DC office.
Any news on White & Case NYC?
sorry about that - point was that those were either all office increases or NY and DC increases (or some other complicated variation that included DC)
Any news on White & Case NYC?
If I were the other big3, I would match and leave OMM in my wake!
Latham will probably find out on Friday. That is when we are expecting our bonus news, so it makes sense to do them at the same time.
Latham matched NY raises only for NY office; in LA they matched the OMM raises and they did it by voicemail which all the LA associates (at least) received.
The only bad thing is if they announced bonuses on the same day that people find out they aren't getting the bigger raise, that'll damage their goodwill from the bonuses.
PLEEEEAAAASE Latham match in all offices. You're a better firm than Fried Frank and Dewey. Show 'em who's boss.
What time did the O'Melveny voice mails go out? Anyone know? I'm holding out hope one of the other Big 3 will step up and force a change.
6:02 - what? LA LW associates have received VMs announcing?
Anonymous' post at 6:02 regarding Latham is false. It appears he is confusing O'Melveny & Latham.
thank you, Weil. Now i guess i should get some work done....
btw, Latham has not announced, so someone is full of it.
OMM voicemails went out about 1:10 PST
So who in Tx has increased?
does anyone know what time today shearman officially announced? normally i wouldn't care but i'm shackled to my desk for at least the next six hours and would like to at least think about the hope for a raise...
It's on the original Shearman email that was posted here - 11:29 AM I think.
It doesn't make any sense whatsoever for O'Melveny to pay their LA and DC associates less than their NY associates when there are major players in both the DC and LA markets (LA- Quinn, Manatt; DC- Skadden, Dewey) who have already stepped up to the 160K plate. Guaranteed 160K for the Big 3 in LA and most of DC by nightfall on Friday.
I have a summer offer at a LA firm in its DC office. I don't understand how it can raise to 145 and expect me or the other summers to work there after graduating when we can make 160 at another firm in DC. What are they thinking???
I have a summer offer at a LA firm in its DC office. I don't understand how it can raise to 145 and expect me or the other summers to work there after graduating when we can make 160 at another firm in DC. What are they thinking???
11:16 --
They think you are not good enough to get a job at one of those firms. And judging by the lack of logic exhibited by your post, I'm guessing they are correct.