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Author Topic: Billing rate to salary ratio??  (Read 7294 times)

SEC_2L

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Billing rate to salary ratio??
« on: February 18, 2009, 06:34:17 PM »

Is there anyway to get a bead on what an associate at a firm makes based on what they bill per hour? Is there like a standard percentage of the rate that they get?

I am trying to figure out what starting associates make at a firm that has offered me for this summer...they are not on NALP or anything...

SEC_2L

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Re: Billing rate to salary ratio??
« Reply #1 on: February 19, 2009, 07:38:52 AM »

Is there anyway to get a bead on what an associate at a firm makes based on what they bill per hour? Is there like a standard percentage of the rate that they get?

I am trying to figure out what starting associates make at a firm that has offered me for this summer...they are not on NALP or anything...

NOBODY has a clue on this...?

upgrade

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Re: Billing rate to salary ratio??
« Reply #2 on: February 19, 2009, 07:45:48 AM »
Check NALP for firms that pay a comparable amount for summer associates in the same or similar markets and then look at first year associate pay.

CTL

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Re: Billing rate to salary ratio??
« Reply #3 on: February 19, 2009, 08:03:49 AM »
Infirmation.com has salary scales listed for most larger firms.  They often have salary per billable hour (usually works out between $50-70/hr.).
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SEC_2L

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Re: Billing rate to salary ratio??
« Reply #4 on: February 19, 2009, 09:10:50 AM »
Thanks for the idea, but unfortunately the whole state is not NALP listed.

Check NALP for firms that pay a comparable amount for summer associates in the same or similar markets and then look at first year associate pay.

SEC_2L

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Re: Billing rate to salary ratio??
« Reply #5 on: February 19, 2009, 09:11:43 AM »
Cool thanks!

Infirmation.com has salary scales listed for most larger firms.  They often have salary per billable hour (usually works out between $50-70/hr.).

T. Durden

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Re: Billing rate to salary ratio??
« Reply #6 on: February 19, 2009, 07:21:48 PM »

Is there anyway to get a bead on what an associate at a firm makes based on what they bill per hour? Is there like a standard percentage of the rate that they get?

I am trying to figure out what starting associates make at a firm that has offered me for this summer...they are not on NALP or anything...


1) first year salay = 160k
2) first year billable rate = 350 / hr (biglaw first yer billables fluctuates 280-350, but 350 is "top of the market" and thus we'll go with it)
3) first year minimum = 2050 (granted, you'll almsot invariably end up billing more than this # but at least it's something to work with)

2050x350 = $717,500
$160,000 / $717,500 x 100 = ~23%
or, more simply, $160,000 / 2050 = $78.00 per hour billed

granted, billable req is not an accurate representation of the amount of time you spend in the office so the per hour payment is actually significantly lower than figure of $78 / hr. it's hard to put a precise sum ont his fig as it's a person-dependent. i guess that it prob (for first years) fluctuates between 55 and 70 an hour.

CTL

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Re: Billing rate to salary ratio??
« Reply #7 on: February 19, 2009, 07:30:17 PM »
This is an interesting and pertinent article:

www.law.yale.edu/documents/pdf/CDO_Public/cdo-billable_hour.pdf
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sheltron5000

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Re: Billing rate to salary ratio??
« Reply #8 on: February 19, 2009, 11:37:45 PM »
Very interesting. I was thinking about it in terms of commute and lunch/dinner, but didn't think about the meetings/general correspondence/reading-just-to-be-current, That comes out to a LOT of hours. (I always knew that, I just never quantified it).
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CTL

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Re: Billing rate to salary ratio??
« Reply #9 on: February 20, 2009, 07:40:11 AM »
Very interesting. I was thinking about it in terms of commute and lunch/dinner, but didn't think about the meetings/general correspondence/reading-just-to-be-current, That comes out to a LOT of hours. (I always knew that, I just never quantified it).

Yea, I was talking to a girl who works at a firm in Toronto, and she said all the non-billable stuff really adds up and keeps you there until 2 am sometimes. 

Good thing I'm addicted to caffeine.
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