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

[Anonymous User]

Covington's egregious memo:

"We are aware of the recent announcement by several New York based firms that they are increasing their associate salary scale. At this point, our view is that this increase in NY salaries does not reflect the prevailing market in Washington or other cities outside New York. Traditionally, associate salaries in New York have been somewhat higher than in other markets around the country..."

bla bla bla.

They are only increasing in NY.

CovingTTTon is real.

[TLSModBot]

Covington's egregious memo:

"We are aware of the recent announcement by several New York based firms that they are increasing their associate salary scale. At this point, our view is that this increase in NY salaries does not reflect the prevailing market in Washington or other cities outside New York. Traditionally, associate salaries in New York have been somewhat higher than in other markets around the country..."

bla bla bla.

They are only increasing in NY.

They did this exact same thing in '07. Them and Hogan managed to push back DC to 160 for 3 months. Don't think that'll work this time around.

[Anonymous User]

Covington to V42.

When do the surveys come out? Do your job, people.

[Big Shrimpin]

what a time to be alive

[Anonymous User]

Covington's egregious memo:

"We are aware of the recent announcement by several New York based firms that they are increasing their associate salary scale. At this point, our view is that this increase in NY salaries does not reflect the prevailing market in Washington or other cities outside New York. Traditionally, associate salaries in New York have been somewhat higher than in other markets around the country..."

bla bla bla.

They are only increasing in NY.

Desperately trying to signal to other DC firms to not raise salaries either.

Regardless of what the other "DC firms" will do, I think we can all expect the DC offices of NY/Chi/LA-based firms to increase nationally. There already were people choosing GDC/K&E/JD/Skadden/etc. DC over Covington, even without the pay difference. Seems like a bad move, but what do I know.

[bern victim]

wow that's ridiculous

how can that be worth it? matching costs them what, $20k per partner?

[Anonymous User]

Covington's egregious memo:

"We are aware of the recent announcement by several New York based firms that they are increasing their associate salary scale. At this point, our view is that this increase in NY salaries does not reflect the prevailing market in Washington or other cities outside New York. Traditionally, associate salaries in New York have been somewhat higher than in other markets around the country..."

bla bla bla.

They are only increasing in NY.

Desperately trying to signal to other DC firms to not raise salaries either.

Regardless of what the other "DC firms" will do, I think we can all expect the DC offices of NY/Chi/LA-based firms to increase nationally. There already were people choosing GDC/K&E/JD/Skadden/etc. DC over Covington, even without the pay difference. Seems like a bad move, but what do I know.

Oh I agree - I think it's a shitty move both from a PR perspective and just a failing one in general. And the bonus issue already pissed off a lot of DC associates. Covington NY works the same hours as DC and they're getting paid more? That won't continue for long.

[Anonymous User]

Covington's egregious memo:

"We are aware of the recent announcement by several New York based firms that they are increasing their associate salary scale. At this point, our view is that this increase in NY salaries does not reflect the prevailing market in Washington or other cities outside New York. Traditionally, associate salaries in New York have been somewhat higher than in other markets around the country..."

bla bla bla.

They are only increasing in NY.

CovingTTTon is real.

wow I can't believe this is happening. I really thought Covington was an elite DC firm

[Wolfpac2]

Covington's egregious memo:

"We are aware of the recent announcement by several New York based firms that they are increasing their associate salary scale. At this point, our view is that this increase in NY salaries does not reflect the prevailing market in Washington or other cities outside New York. Traditionally, associate salaries in New York have been somewhat higher than in other markets around the country..."

bla bla bla.

They are only increasing in NY.

Desperately trying to signal to other DC firms to not raise salaries either.

Regardless of what the other "DC firms" will do, I think we can all expect the DC offices of NY/Chi/LA-based firms to increase nationally. There already were people choosing GDC/K&E/JD/Skadden/etc. DC over Covington, even without the pay difference. Seems like a bad move, but what do I know.

Oh I agree - I think it's a shitty move both from a PR perspective and just a failing one in general. And the bonus issue already pissed off a lot of DC associates. Covington NY works the same hours as DC and they're getting paid more? That won't continue for long.

Seriously. I don't get the point of what they are doing. Covington will have to move to 180k eventually, so why take the reputational + recruiting hit now? Unless they are resigned to becoming a second tier firm in their own hometown. Just seems like an exceedingly dumb move.

[Byakuya769]

Regardless of what the other "DC firms" will do, I think we can all expect the DC offices of NY/Chi/LA-based firms to increase nationally. There already were people choosing GDC/K&E/JD/Skadden/etc. DC over Covington, even without the pay difference. Seems like a bad move, but what do I know.

Obvious JD anon is obvious.

[LaLiLuLeLo]

Covington has decided to embrace their CovingTTTon nickname.

[jbagelboy]

FUCK Covington. Just fuck them.

[jbagelboy]

This is some TTT shit

[Cobretti]

Regardless of what the other "DC firms" will do, I think we can all expect the DC offices of NY/Chi/LA-based firms to increase nationally. There already were people choosing GDC/K&E/JD/Skadden/etc. DC over Covington, even without the pay difference. Seems like a bad move, but what do I know.

Obvious JD anon is obvious.

To be fair last year at least 10 people chose JD over CovingTTTon

[Anonymous User]

I don't think they'll be alone. Work at a firm with many offices that assuredly will match for NY. No memo has gone out and I have been wondering if it's because they don't want to raise to 180 for all US offices.

Alternatively, NY to 190k!!

[PeanutsNJam]

Can we get an updated list of firms outside NYC paying 180?

[jbagelboy]

this covington shit might give an out to firms in DC/SF/LA/Chicago/Boston that they can get away with this

but what they fail to realize is that its not really about COL, its about competing for talent--and without a doubt, somewhere like Covington DC competes for talent with S&C/CSM/DPW/ect in NY. To the extent its about money, its loans, not CoL, since DC CoL is nearly as atrocious (and California isn't a whole lot better either). And loans are constant.

[Anonymous User]

Covington is one of the most grade-snobby and school-snobby firms out there. Do they really think they can get away with this and not be relegated to the very bottom of any student's bid list? It's incredibly myopic on their part and will destroy their recruiting appeal.

Other national firms with significant presence in Covington's markets (e.g., Skadden, Latham) have not yet announced but it seems incredibly unlikely that they will raise only in NY given Cleary's move.

[Actus Reus]

Covington's San Fran lawyers must be super pissed

[Anonymous User]

Covington's egregious memo:

"We are aware of the recent announcement by several New York based firms that they are increasing their associate salary scale. At this point, our view is that this increase in NY salaries does not reflect the prevailing market in Washington or other cities outside New York. Traditionally, associate salaries in New York have been somewhat higher than in other markets around the country..."

bla bla bla.

They are only increasing in NY.

Desperately trying to signal to other DC firms to not raise salaries either.

Regardless of what the other "DC firms" will do, I think we can all expect the DC offices of NY/Chi/LA-based firms to increase nationally. There already were people choosing GDC/K&E/JD/Skadden/etc. DC over Covington, even without the pay difference. Seems like a bad move, but what do I know.

Oh I agree - I think it's a shitty move both from a PR perspective and just a failing one in general. And the bonus issue already pissed off a lot of DC associates. Covington NY works the same hours as DC and they're getting paid more? That won't continue for long.

And Covington DC associates already kind of look down on Covington NY associates as working at the less-prestigious "outpost." It would be like if K&E NY matched $180k but left K&E Chi at $160k. People in Chicago would be livid.

[jbagelboy]

Where Latham and Gibson go will decide LA.

Where Covington, A&P and Wilmer go will decide DC.

That's why this is so caustic.

[KidStuddi]

Covington's egregious memo:

"We are aware of the recent announcement by several New York based firms that they are increasing their associate salary scale. At this point, our view is that this increase in NY salaries does not reflect the prevailing market in Washington or other cities outside New York. Traditionally, associate salaries in New York have been somewhat higher than in other markets around the country..."

bla bla bla.

They are only increasing in NY.

CovingTTTon is real.

wow I can't believe this is happening. I really thought Covington was an elite DC firm

You haven't been paying attention then. Covington is a great law firm and they do great work, but they don't do work that's nearly as profitable from a partnership perspective as the mega rich firms. Cov's PPP last year was ~1.3 whereas most of the V10 are all in the 3.xs. They've never been in that realm of profitability and won't be anytime soon unless they start doing only work that allows them to take a cut of the deal value like Wachtell (not at all plausible) or jettison many of their practice areas and refocus on areas with higher leverage ratios. That's undoubtedly the reason Paul Weiss cracked the 4.x mil PPP before most of its peers, but that 5.8 leverage ratio is disgusting and probably unsustainable as soon as another slow down comes around.

[Anonymous User]

Covington is one of the most grade-snobby and school-snobby firms out there. Do they really think they can get away with this and not be relegated to the very bottom of any student's bid list? It's incredibly myopic on their part and will destroy their recruiting appeal.

Other national firms with significant presence in Covington's markets (e.g., Skadden, Latham) have not yet announced but it seems incredibly unlikely that they will raise only in NY given Cleary's move.

This - I'm starting there in the Fall. If this was going on before OCI, I probably wouldn't have bid them at all.

[Anonymous User]

this covington shit might give an out to firms in DC/SF/LA/Chicago/Boston that they can get away with this

but what they fail to realize is that its not really about COL, its about competing for talent--and without a doubt, somewhere like Covington DC competes for talent with S&C/CSM/DPW/ect in NY. To the extent its about money, its loans, not CoL, since DC CoL is nearly as atrocious (and California isn't a whole lot better either). And loans are constant.

Eh, I don't think there's as much competition directly between Covington DC and the big NY shops as there is between Covington DC and other DC offices. At least when I was in law school, Wachtell was essentially the only NY-HQ'd firm that could tear away top students who have their heart set on DC. There is such a big difference between being an associate at SullCrom/DPW/Cravath in NYC than being an associate at Covington in DC.

[jbagelboy]

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