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Author Topic: BigLaw salaries going down to 144k for class of 2009?  (Read 1536 times)

Matthies

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BigLaw salaries going down to 144k for class of 2009?
« on: March 13, 2009, 07:00:12 PM »
Lawyer Pay

Will $144K Become the Norm for BigLaw Associate Starting Pay?
Posted Mar 10, 2009, 06:23 am CDT
By Debra Cassens Weiss

A Chicago legal recruiter says the leaders of several large law firms are considering cutting associate starting pay.
The problem, recruiter Kay Hoppe tells the Chicago Tribune, is that no one wants to be among the first to announce pay cuts.

"I've heard from several chairmen who believe first-years need to be rolled back," Hoppe said. "But they are hoping somebody else will start."
Two law firms have already started the ball rolling.

McGuireWoods announced Friday that is dropping starting pay for associates in the class of 2009 from $160,000 to $144,000. At least one other law firm—WolfBlock—has also announced a 10 percent pay cut.

McGuireWoods managing partner Craig Culbertson noted in an interview with the Tribune that lawyers in the class of 2008 had their salaries frozen this year. If the class of 2009 joins the firm at the same pay, "you start to get morale problems."

Several large law firms have frozen associate salaries, and they could offer the same justification for a pay cut.

If law firm leaders act, they will be following the advice of Bradford Hildebrandt, who urged pay cuts last week at a forum sponsored by his legal consulting firm.
“If you don’t cut associate starting salaries now, you are nuts,” Hildebrandt said. “They were too high. Now we have to pay for it.”

http://www.abajournal.com/weekly/will_144k_become_the_norm_for_associate_starting_pay
*In clinical studies, Matthies was well tolerated, but women who are pregnant, nursing or might become pregnant should not take or handle Matthies due to a rare, but serious side effect called him having to make child support payments.

Matthies

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Re: BigLaw salaries going down to 144k for class of 2009?
« Reply #1 on: March 13, 2009, 07:10:50 PM »
I’ve said in other threads I thought this would happen sooner or later. I think we are seeing the death of the Cravath model, clients just are not willing to pay higher fees for name brand talent in this market, and without the fee premium firms can't pay the saleries we used to see.

I don’t think things are going to change even if the economy gets better. Biglaw was already extremely top heavy and with it now averaging 1200 layoffs a week no way could it support increasing first year associates salaries ever year. Summer classes are going to get smaller and more selective while salaries decrease in the near future I think. I also think tied to this is going to be the death of the billable hour as the primary way to bill clients, firms are going to start competing for “value added” services, and one way to do that is offer clients a flat rate on some types of legal issues, competing for quantity to make money over quality in this market. Thoughts? 
*In clinical studies, Matthies was well tolerated, but women who are pregnant, nursing or might become pregnant should not take or handle Matthies due to a rare, but serious side effect called him having to make child support payments.

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Re: BigLaw salaries going down to 144k for class of 2009?
« Reply #2 on: March 13, 2009, 08:18:04 PM »
Don't forget about the Obama tax increases which will unduly harm anyone makings over $18,000/year.  ::)

SASS

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Re: BigLaw salaries going down to 144k for class of 2009?
« Reply #3 on: March 13, 2009, 08:28:55 PM »
Don't forget about the Obama tax increases which will unduly harm anyone makings over $18,000/year.  ::)

?????


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Re: BigLaw salaries going down to 144k for class of 2009?
« Reply #4 on: March 13, 2009, 08:29:32 PM »
Don't forget about the Obama tax increases which will unduly harm anyone makings over $18,000/year.  ::)

?????



Just kidding around

SASS

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Re: BigLaw salaries going down to 144k for class of 2009?
« Reply #5 on: March 13, 2009, 08:35:27 PM »
ah, I figured that had to be a joke I misunderstood but you never know who is misstating Obama's tax policies.

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Re: BigLaw salaries going down to 144k for class of 2009?
« Reply #6 on: March 13, 2009, 08:37:02 PM »
ah, I figured that had to be a joke I misunderstood but you never know who is misstating Obama's tax policies.

Yeah, I was playing off how misunderstood his proposed tax policy is.  That said, I think this is an awful time to raise taxes on anyone.  But it still is grossly misunderstood

Remarq

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Re: BigLaw salaries going down to 144k for class of 2009?
« Reply #7 on: March 13, 2009, 08:45:57 PM »
ah, I figured that had to be a joke I misunderstood but you never know who is misstating Obama's tax policies.

Yeah, I was playing off how misunderstood his proposed tax policy is.  That said, I think this is an awful time to raise taxes on anyone.  But it still is grossly misunderstood

Which is why it's a good thing that no one is getting a tax increase until 2011. :)

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Re: BigLaw salaries going down to 144k for class of 2009?
« Reply #8 on: March 13, 2009, 08:48:49 PM »
ah, I figured that had to be a joke I misunderstood but you never know who is misstating Obama's tax policies.

Yeah, I was playing off how misunderstood his proposed tax policy is.  That said, I think this is an awful time to raise taxes on anyone.  But it still is grossly misunderstood

Which is why it's a good thing that no one is getting a tax increase until 2011. :)

Nancy Pelosi's expressed her desire to rescind the tax cuts immediately.  But Obama's been pretty adamantly against this.

Matthies

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Re: BigLaw salaries going down to 144k for class of 2009?
« Reply #9 on: March 13, 2009, 09:17:12 PM »
ah, I figured that had to be a joke I misunderstood but you never know who is misstating Obama's tax policies.

Yeah, I was playing off how misunderstood his proposed tax policy is.  That said, I think this is an awful time to raise taxes on anyone.  But it still is grossly misunderstood

But if our salary goes down so does our taxes! Yea! ...wait what..
*In clinical studies, Matthies was well tolerated, but women who are pregnant, nursing or might become pregnant should not take or handle Matthies due to a rare, but serious side effect called him having to make child support payments.