2014 wrote:Does those of you more educated than I think if it happens it's going to be a one-off firm (like Boies currently) or it will be a haves/have nots situation where a dozen or whatever wealthier (presumably NY) firms raise it and the rest stick at 160 for the time being?
Sub question - would anyone expect DC/Chi/LA/SF firms currently paying 160 to match a NY raise?
Not more educated than you, but... I think what we are talking about here is something like the V10~20 separating from the pack, there are already one offs (like you mentioned) and another one wouldn't necessarily be a significant occurance.
As far as not everyone following an increase, the financial metrics seem to keep showing a greater schism between the top firms and the rest of the pack, so it would make sense that compensation would follow. And my thoughts on the secondary 160 markets are that this same thing will play out, but it would be much more significant because fewer secondary market firms/offices are comparable to NYC profitability. A lot of these markets just simply aren't that profitable (DC Lit is an example, its prestigious as hell but at the end of the day transactional is just more profitable for just about every firm outside of PW/GDC), and there may be few (if any) firms/offices willing to follow an increase. More transactional focused and profitable secondaries like Chicago/SF/SV could see more firms follow suit though (personal wishful thinking may bias me here.....).
Hopefully internal pressure within firms with highly integrated offices will get them to increase in secondaries though, which would put pressure on others in the market. There are firms like Skadden that would definitely increase in NYC but then have such integrated secondary offices that they might face more pressure than other firms to increase comp across the board. Maybe just wishful thinking, but the simple fact that this is already how it is currently should support something similar happening in the future.