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

[Anonymous User]

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.

Well if you haven't heard of them you're an idiot.

[LaLiLuLeLo]

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

http://www.americanlawyer.com/id=120275 ... 2615717726

[jbagelboy]

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

http://www.americanlawyer.com/id=120275 ... 2615717726

any chance we could get a non-paywall version or a copy paste of the full article? sorry ;/

[LaLiLuLeLo]

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

http://www.americanlawyer.com/id=120275 ... 2615717726

any chance we could get a non-paywall version or a copy paste of the full article? sorry ;/

If you Google it and click from google it won't be paywalled. That's how I do it.

[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.

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

Eh - there's no way that the DC offices will maintain that. Some firms - GDC or Wilmer are going to try and get a leg up in recruitment and move. I expected DC to move a bit slower, but it WILL move. Whether they want to admit it or not, the top DC shops are competing in the same talent pool as the top NY shops. $20k goes a long way to make up any supposed difference in prestige.

[Desert Fox]

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.

when you bid them at OCI last fall, they already weren't paying Market. They only matched STB scale bonuses this march. And they pay them like 3 months late.

so you probably would have.

[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.

when you bid them at OCI last fall, they already weren't paying Market. They only matched STB scale bonuses this march. And they pay them like 3 months late.

so you probably would have.

I think it's easy to separate bonus from actual pay.

[KidStuddi]

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

Well they really are not that levered. It's like right about 2.0, which is significantly lower than almost any other "elite" firm other than Wachtell and Williams and Connolly.

[Anonymous User]

Gah, NY, DC, SF, LA all are going to move before Chicago, no?

[jbagelboy]

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.

when you bid them at OCI last fall, they already weren't paying Market. They only matched STB scale bonuses this march. And they pay them like 3 months late.

so you probably would have.

thats very meaningfully different from a $20k base salary difference from a first years' perspective

[Anonymous User]

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

Well they really are not that levered. It's like right about 2.0, which is significantly lower than almost any other "elite" firm other than Wachtell and Williams and Connolly.

or munger tolles or a handful of other elite small firms.

[Anonymous User]

Topic title hurting my soul.

[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.

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

Eh - there's no way that the DC offices will maintain that. Some firms - GDC or Wilmer are going to try and get a leg up in recruitment and move. I expected DC to move a bit slower, but it WILL move. Whether they want to admit it or not, the top DC shops are competing in the same talent pool as the top NY shops. $20k goes a long way to make up any supposed difference in prestige.

As I said above, I fully expect WH will match in NY and be essentially forced to match in DC as well. I'd be very surprised if they didn't do either. But I also don't know shit quite often when I think I do. WH will take a financial hit by matching, no doubt, but I really think they will. So Covington might be on the ropes at that point.

[Bananapancakes]

Gah, NY, DC, SF, LA all are going to move before Chicago, no?

.

[Anonymous User]

Worth noting that QE never sent a memo. Could be waiting on movers like Cov./KE to give them an out outside of NY.

Has Skadden announced? Just trying to think of firms with many domestic offices.

[Anonymous User]

The firms compete across cities much more than you may not otherwise think. Contrary to even 10 years ago, there is now clearly a national market for attorneys. It's a logical fallacy to think that students are fully committed to one city. There is a finite number of people at the top of the class at YSHCCN, and all firms aggressively offer these people. Covington is effectively exiting the pool of firms that will receive consideration from these students.

[Anonymous User]

Worth noting that QE never sent a memo. Could be waiting on movers like Cov./KE to give them an out outside of NY.

Has Skadden announced? Just trying to think of firms with many domestic offices.

Skadden partner meetings are on Wednesdays, so we should hear one way or another soon.

[KidStuddi]

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

Well they really are not that levered. It's like right about 2.0, which is significantly lower than almost any other "elite" firm other than Wachtell and Williams and Connolly.

or munger tolles or a handful of other elite small firms.

Well yeah, if you want to open it up to all of the semi-boutiques the list can get pretty long. The point really is that Covinton is an anomaly given its very low leverage ratio but undeniably "BigLaw" headcount.

[JusticeJackson]

.

[jbagelboy]

I'm going to email Covington DC and tell them that I enjoyed meeting everyone, but I'm withdrawing my candidacy in light of their recent failure to match market pay rates. I have never interviewed at Covington and I haven't sent an application there. But it's the best way I can think of to complete the feedback loop.

^do it

[Anonymous User]

A week from now, Covington will move to 180k after their attempt to keep DC at 160k has failed. Then all will be right with the world.

[dailygrind]

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

Well they really are not that levered. It's like right about 2.0, which is significantly lower than almost any other "elite" firm other than Wachtell and Williams and Connolly.

Yeah, but not being highly levered should also mean that it's cheaper to give their associates a raise.

[Cobretti]

A week from now, Covington will move to 180k after their attempt to keep DC at 160k has failed. Then all will be right with the world.

I think even after they go to 180k with their tail between their legs they should retain the moniker of CovingTTTon as a warning to any other "elite" firm that wants to try that crap in the future.

Never Forget CovingTTTon to 160 6/8/2016

[El Pollito]

everyone whose firm hasn't matched start sending pieces of paper that say 180K in size 200 to all your firm's printers

thank you

[Actus Reus]

everyone whose firm hasn't matched start sending pieces of paper that say 180K in size 200 to all your firm's printers

thank you

I internal enveloped monopoly money to the partners