2008 Woodie Awards
Biglaw Firms Announce Pay Raises for First Years
Kelly Brown
Issue date: 2/16/06 Section: News
Last semester, rumors and speculation flew at Harvard Law after several major law firms hinted at potential increases in standard base salaries for first-year associates. The first-year salaries at top firms had held steady at $125,000 for the past five years, and a report issued by the National Association for Law Placement last August called entry-level salaries "remarkably stable."
That stability is about to change. At premier law firms across the country, partners have announced increases to $135,000 and $145,000. Kirkland & Ellis, Covington, Morrison & Foerster, Hogan & Hartson, Paul Hastings, Sidley Austin, and Latham & Watkins are among the firms making the jump to $135,000.
"I didn't know there was a recent salary increase," said 3L Jasi Kamody, who will head to Akin Gump in Washington, D.C., after graduation. "I thought [the starting salary] was still $125,000?"
In fact, Akin Gump has raised entry-level salaries in D.C. to $135,000, and in New York City to $145,000. Other firms that have raised their base pay to $145,000 include Davis Polk, Simpson Thacher, Paul Weiss, and the NY offices of Kirkland, Covington, Paul Hastings, and Latham.
Although NALP had predicted that an enhancement in the pay structure of mid- and upper-level associates was more likely than an increase in first-year salary, New York Lawyer reported last summer that partners, consultants and recruiters said that New York and California would likely increase entry-level pay this year or next.
"I'm certainly excited about the prospect of a salary increase by the time I start working this fall. It has been over five years since the last increase at most firms, so I think the time is definitely ripe," said 3L Michael Weiss. "On the other hand, given how high the pay already is, it feels awful greedy to be clamoring for more."
Skadden, which has paid first-years $140,000 since 2000, set the industry standard, and other large firms have finally matched it. Whether Skadden will now increase its base pay to again lead the pack, perhaps to $160,000, remains to be seen.
That stability is about to change. At premier law firms across the country, partners have announced increases to $135,000 and $145,000. Kirkland & Ellis, Covington, Morrison & Foerster, Hogan & Hartson, Paul Hastings, Sidley Austin, and Latham & Watkins are among the firms making the jump to $135,000.
"I didn't know there was a recent salary increase," said 3L Jasi Kamody, who will head to Akin Gump in Washington, D.C., after graduation. "I thought [the starting salary] was still $125,000?"
In fact, Akin Gump has raised entry-level salaries in D.C. to $135,000, and in New York City to $145,000. Other firms that have raised their base pay to $145,000 include Davis Polk, Simpson Thacher, Paul Weiss, and the NY offices of Kirkland, Covington, Paul Hastings, and Latham.
Although NALP had predicted that an enhancement in the pay structure of mid- and upper-level associates was more likely than an increase in first-year salary, New York Lawyer reported last summer that partners, consultants and recruiters said that New York and California would likely increase entry-level pay this year or next.
"I'm certainly excited about the prospect of a salary increase by the time I start working this fall. It has been over five years since the last increase at most firms, so I think the time is definitely ripe," said 3L Michael Weiss. "On the other hand, given how high the pay already is, it feels awful greedy to be clamoring for more."
Skadden, which has paid first-years $140,000 since 2000, set the industry standard, and other large firms have finally matched it. Whether Skadden will now increase its base pay to again lead the pack, perhaps to $160,000, remains to be seen.