NY GOES TO 180k! IT HAPPENED!!!! (CovingTTTon does a 180! Holder wept.) Forum

[sublime]

..

[BizBro]

How long til rest of v50 match?

[KM2016]

Really need a NY firm to announce that its matching for its other major city offices (DC, SF, LA).

[North]

I can't even

[sublime]

..

[lymenheimer]

Really need a NY firm to announce that its matching for its other major city offices (DC, SF, LA) and secondary markets bumping to next step (ie 130k --> 160k) and a confirmation of proportional SA pay

That would be cool. Great idea

[1styearlateral]

Someone please how much is 180k after taxes?

After NYC taxes??? Roughly $108k.

[Anonymous User]

New York law firm Cravath, Swaine & Moore LLP is significantly raising base salaries for its junior lawyers for the first time in nearly a decade, a move likely to trigger a wave of similar hikes throughout the legal industry.

As of July 1, first-year lawyers at the firm will now get $180,000, up from the longtime standard of $160,000 for law-school graduates, according to an internal Cravath memo reviewed by The Wall Street Journal. The base salaries ratchet up from there, with fourth-year lawyers, for instance, making $235,000, and eighth-year lawyers earning $315,000. Associates typically make year-end bonuses on top of base salaries.

The change is likely to spawn a wave of copycat moves from Cravath’s law-firm competitors. Law firms compete for the same pool of top-tier graduates, and salary is often viewed as a deciding factor. Large corporate law firms are often quick to match what market leaders like Cravath pay.

The last major salary boom happened in 2007, when Cravath and others boosted first-year pay to $160,000 from $145,000.

In the years since, the market for junior lawyers and the economics of big law firms have changed dramatically. Facing pushback from clients, law firms are now more resistant to charging for the work of first- and second-year lawyers, making it more difficult to justify high salaries. Profits also have been squeezed by tightening demand for law firms’ services since the economic downtown.

At the same time, young lawyers face mounting expenses. Law students frequently graduate with more than $100,000 in debt, and rent and health-care costs have risen in major cities across the country. Overall cost of living has increased by a few percentage points most years since 2007, according to the Social Security Administration.

In recent years, a small group of elite law firms, including Cravath, have pulled away from the pack and continue to be highly profitable while others have had a tougher time keeping pace. Cravath, which counts among its clients J.P. Morgan Chase & Co., American Express Co., International Business Machines Corp. and Johnson & Johnson, brought in $666.5 million in revenue last year, according to the American Lawyer magazine. Its partners took home average profits of $3.56 million, lower than just five other U.S. firms.

[Anonymous User]

WALL STREET FUCKING JOURNAL...

http://www.wsj.com/articles/law-firm-cr ... 1465241318

Love the tagline: "Change is likely to spawn a wave of copycat moves from the New York firm’s competitors"

Could someone post the article who can get past the paywall?

Just google the title--paywalls on major news sources tend to disappear when accessing the same site from a google search

[soj]

.

[Desert Fox]

who gives a shit about SAs. Oh great you like like 3k extra.

I'm hoping Skadden, DPW, and Cleary do 180k in all offices across the nation. That should get the V50 to least do 180k in primary markets

[KM2016]

How long til rest of v50 match?

I assume at least the V10 or so will be really, really quick.

I think matches will be much more likely from the big PPP firms, and not tied as rigidly to rankings.

[Mack.Hambleton]

ITS HAPPENING

[78623089]

Law Firm Cravath Raising Starting Salaries to $180,000
Change is likely to spawn a wave of copycat moves from the New York firm’s competitors
By SARA RANDAZZO
June 6, 2016 3:28 p.m. ET
0 COMMENTS
New York Law Firm Cravath, Swaine & Moore LLP is significantly raising base salaries for its junior lawyers for the first time in nearly a decade, a move likely to trigger a wave of similar hikes throughout the legal industry.

As of July 1, first-year lawyers at the firm will now get $180,000, up from the longtime standard of $160,000 for law-school graduates, according to an internal Cravath memo reviewed by The Wall Street Journal. The base salaries ratchet up from there, with fourth-year lawyers, for instance, making $235,000, and eighth-year lawyers earning $315,000. Associates typically make year-end bonuses on top of base salaries.

The change is likely to spawn a wave of copycat moves from Cravath’s law-firm competitors. Law firms compete for the same pool of top-tier graduates, and salary is often viewed as a deciding factor. Large corporate law firms are often quick to match what market leaders like Cravath pay.

The last major salary boom happened in 2007, when Cravath and others boosted first-year pay to $160,000 from $145,000.

In the years since, the market for junior lawyers and the economics of big law firms have changed dramatically. Facing pushback from clients, law firms are now more resistant to charging for the work of first- and second-year lawyers, making it more difficult to justify high salaries. Profits also have been squeezed by tightening demand for law firms’ services since the economic downtown.

At the same time, young lawyers face mounting expenses. Law students frequently graduate with more than $100,000 in debt, and rent and health-care costs have risen in major cities across the country. Overall cost of living has increased by a few percentage points most years since 2007, according to the Social Security Administration.

In recent years, a small group of elite law firms, including Cravath, have pulled away from the pack and continue to be highly profitable while others have had a tougher time keeping pace. Cravath, which counts among its clients J.P. Morgan Chase & Co., American Express Co., International Business Machines Corp. and Johnson & Johnson, brought in $666.5 million in revenue last year, according to the American Lawyer magazine. Its partners took home average profits of $3.56 million, lower than just five other U.S. firms.

[gk101]

HOLY SHIT!

don't expect this to get to secondary markets like chicago just yet but I am guessing the bonuses will be higher this year

[Anonymous User]

How long til rest of v50 match?

I assume at least the V10 or so will be really, really quick.

I think matches will be much more likely from the big PPP firms, and not tied as rigidly to rankings.

.

[Anonymous User]

This is the greatest June 6 in American history.

<3 <3 <3

[TLSModBot]

How long til rest of v50 match?

In a dark way I'm interested in seeing who won't match. This could be the point where segmentation in the top-tier of firms is finally and concretely reflected in salaries: the firms who are doing well and can afford this jump vs. those that really, really can't and won't even bother. Top 40 or 50 most profitable AmLaw 100 firms will likely make the jump, but will low-profitable or struggling firms even try (a good half of the AmLaw 200 have had some rough times lately)?

[smaug]

Who will be first to match? DPW/S&C?

[smaug]

How long til rest of v50 match?

In a dark way I'm interested in seeing who won't match. This could be the point where segmentation in the top-tier of firms is finally and concretely reflected in salaries: the firms who are doing well and can afford this jump vs. those that really, really can't and won't even bother. Top 40 or 50 most profitable AmLaw 100 firms will likely make the jump, but will low-profitable or struggling firms even try (a good half of the AmLaw 200 have had some rough times lately)?

Tar bet that all v50 in NYC match or exceed?

[dailygrind]

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[ph5354a]

This is the greatest June 6 in American history.

<3 <3 <3

Accidental anon. 180 post (!!) Mono.

[BizBro]

How long til rest of v50 match?

In a dark way I'm interested in seeing who won't match. This could be the point where segmentation in the top-tier of firms is finally and concretely reflected in salaries: the firms who are doing well and can afford this jump vs. those that really, really can't and won't even bother. Top 40 or 50 most profitable AmLaw 100 firms will likely make the jump, but will low-profitable or struggling firms even try (a good half of the AmLaw 200 have had some rough times lately)?

Will this reorder the v100 list? I mean some firms with the highest PPP are 40-50 right now

[TLSModBot]

How long til rest of v50 match?

In a dark way I'm interested in seeing who won't match. This could be the point where segmentation in the top-tier of firms is finally and concretely reflected in salaries: the firms who are doing well and can afford this jump vs. those that really, really can't and won't even bother. Top 40 or 50 most profitable AmLaw 100 firms will likely make the jump, but will low-profitable or struggling firms even try (a good half of the AmLaw 200 have had some rough times lately)?

Tar bet that all v50 in NYC match or exceed?

K - which side do you want?

[jbagelboy]

If SF/LA/DC doesn't match, fml