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

[Biglaw1990]

Simpson Thacher just matched

[cookiejar1]

There is such a big difference between being an associate at SullCrom/DPW/Cravath in NYC than being an associate at Covington in DC.

Yeah, at least a $20,000 difference it looks like.

[Anonymous User]

Can someone please just post the entire Covington memo? I want to read the whole damn thing.

[2014]

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.

Yeah the former is more well compensated

[TLSModBot]

There is such a big difference between being an associate at SullCrom/DPW/Cravath in NYC than being an associate at Covington in DC.

Yeah, at least a $20,000 difference it looks like.

[TripTrip]

The prefstige of going to DC is worth at least $20k.

[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.

When they're all making 160k, sure. When one is making 180 and the other is making 160?

It would have made a difference to me when I was choosing.

[mushybrain]

Did any of the firms that have moved already have different salary tiers based on office before the bump to 180k? In the US, at least?

[Actus Reus]

Can someone please just post the entire Covington memo? I want to read the whole damn thing.

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. With the recent increase in associate bonuses to match NY levels (which we announced earlier this year), we see this recent move by some New York firms as reinstating the modest differential that we've traditionally seen in NY vis a vis other markets around the country. To some extent, this may reflect cost of living differences and it may also reflect a slight premium for working in highly leveraged firms with quite limited partnership and promotion opportunities. At this stage, we are not planning to increase associate salaries in any market outside NY, though of course we will continue to study these issues carefully.

[LaLiLuLeLo]

Holy shit. That truly is a trash tier response.

[sublime]

..

[mushybrain]

Yikes and the memo didn't even come with a cheese plate

[jbagelboy]

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. With the recent increase in associate bonuses to match NY levels (which we announced earlier this year), we see this recent move by some New York firms as reinstating the modest differential that we've traditionally seen in NY vis a vis other markets around the country. To some extent, this may reflect cost of living differences and it may also reflect a slight premium for working in highly leveraged firms with quite limited partnership and promotion opportunities. At this stage, we are not planning to increase associate salaries in any market outside NY, though of course we will continue to study these issues carefully.

[LaLiLuLeLo]

“With announcement some big law firms demonstrate that they do not listen to what their clients have been saying over the past decade about the price of legal services,” said Kelley Drye & Warren chair James Carr, who assumed leadership of his firm last year. “While we continue to monitor the compensation market, in our view, sophisticated purchasers realize that they can obtain equal or better legal services at Kelley Drye for a fraction of the cost.”

Covington is no better than Kelley Drye

[Anonymous User]

If it's not a screen cap or on ATL can we really believe it?

Cov SA in denial.

[LaLiLuLeLo]

“We certainly took note,” said Fox Rothschild managing partner Mark Silow of the salary increases. “[But] we don’t view Cravath as one of our competitors. It’s really in a different segment of the market.”

CovingTTTon is now a peer firm of Fox Rothschild.

[jbagelboy]

where are you guys getting these clips of statements from other firms not matching?

[Actus Reus]

If it's not a screen cap or on ATL can we really believe it?

Cov SA in denial.

Yes, I spend my billable hours making up memos. This is from a Covington person who told me over the phone and then screencapped it for me. Not willing to post the screencap because it has some identifying information.

[PeanutsNJam]

Lol @ Covington not being highly leveraged or not having "quite limited partnership potential"

[arklaw13]

CovingTTTon associates lateralling to cleary in DROVES

[smaug]

This is such a tightrope act though. Lose out on some associates or run the risk of causing partner defections because you couldn't keep your PPP up.

I want to see the raw numbers

Help us out, Capitol

[Monochromatic Oeuvre]

As of today, the only "Covington" I have ever heard of is a city in Kentucky, and I wouldn't recommend that law students put a mediocre Cincinnati suburb on their bidlist.

[Greenandgold]

If it's not a screen cap or on ATL can we really believe it?

Cov SA in denial.

Don't worry, you'll have higher-paying options at 3L OCI.

[Desert Fox]

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.

Bingo. Otherwise they'd just wait and see. Right now they risk being cheap asses and then in a week when everyone in their mother is paying 180k, they'll have to do it.

That said, I think there is a real possibility that the big DC-mostly firms may stick to 160k. More than a few people would be willing to trade presige for that 20k. They were getting outbonused by shops like DLA piper for years and nobody moved.

But if Gibson, WH, or A&P move they'll have to watch.

I think they could withstand K&E, Cleary, Skadden, Latham, or any other V10 with a DC outpost moving.

The question would whether the V50's in town follow the NYC centered firms lead or follow the DC centered firms lead.

Fuck u covington

[Anonymous User]

If you don't pay market compensation, you don't get the highest quality associates.

If you don't get the highest quality associates, you don't deliver the highest quality representation.

If you don't deliver the highest quality representation, you cannot charge the highest fees.

Actually, you can't even charge anything close to the highest fees. A lawyer who is 90% as good as the opposing one in bet-the-company litigation or dealmaking cannot command 90% of the fees. They're effectively next-to-worthless. It's the same with the 90% of law graduates who are relegated to the sub-Biglaw dustbin. They can't go toe to toe with the best, so they're functionaries.

By not paying market, Covington is signaling to its clients that it doesn't give a damn about the quality of its associates. Any associate currently at Covington should brush up on that resume.