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

[patentlitigatrix]

OMG if some SV firm does what Covington did my brain might explode.

[TLSModBot]

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

Affix said pieces of paper using a knife embedded in each partner's door

[mushybrain]

uh I can't afford a bunch of monopoly money or knives on my 160k salary. But maybe that's because I live in CA, where the cost of living makes 160k inhumane.

[TLSModBot]

uh I can't afford a bunch of monopoly money or knives on my 160k salary. But maybe that's because I live in CA, where the cost of living makes 160k inhumane.

wtf your office doesn't provide knives? What kinda TTT outfit you at bro

[Big Shrimpin]

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.

are you a LS student or junior associate?

edit: bc clients care more about existing/legacy relationships with partners/firms (generally) than with whether the associate pool all graduated top 10% at HYSetc...

edit 2: also many clients don't love it when firms up associate pay (this should be of no surprise to anyone)

[mushybrain]

uh I can't afford a bunch of monopoly money or knives on my 160k salary. But maybe that's because I live in CA, where the cost of living makes 160k inhumane.

wtf your office doesn't provide knives? What kinda TTT outfit you at bro

They're plastic. They seem to hide the door-stabby kind. Huh.

[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.

I mean that's exactly what's going to happen. Still frustrating in the short term, though.

[charliekelly33]

ATL's bad news bulletin: http://abovethelaw.com/2016/06/ny-to-18 ... -matching/

[Anonymous User]

We need new poll.

How about: "How many Covington DC associates jump ship by year end?" Looks like they have about 250 DC associates, so 5 poll options, 0-50, 50-100 etc.

[TLSModBot]

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 mean that's exactly what's going to happen. Still frustrating in the short term, though.

I think this will finally break Covington of the notion that they, Hogan, and WH still dictate the terms of the DC market in any meaningful way.

[Big Shrimpin]

We need new poll.

How about: "How many Covington DC associates jump ship by year end?" Looks like they have about 250 DC associates, so 5 poll options, 0-50, 50-100 etc.

nah new poll should incorporate whether this will be pervasive (with alternative scenarios that im not creative enough to suggest)

[Mack.Hambleton]

ATL's bad news bulletin: http://abovethelaw.com/2016/06/ny-to-18 ... -matching/

wahhh

[John_Luther1989]

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 mean that's exactly what's going to happen. Still frustrating in the short term, though.

That and they'll look so fucking bad. They were already thought of as a bit stingy, this would cement the idea that they could give a fuck.

[WinSome]

ATL's bad news bulletin: http://abovethelaw.com/2016/06/ny-to-18 ... -matching/

This article makes it look like Philly won't be matching. Makes sense since they just switched to 160k last year.

[jbagelboy]

.

[JusticeJackson]

.

[SplashBros]

ATL's bad news bulletin: http://abovethelaw.com/2016/06/ny-to-18 ... -matching/

wahhh

I wonder who the unnamed "Am Law and Vault 100 firm not based in New York" is that definitely won't be matching.

DLA?

[KidStuddi]

ATL's bad news bulletin: http://abovethelaw.com/2016/06/ny-to-18 ... -matching/

wahhh

I wonder who the unnamed "Am Law and Vault 100 firm not based in New York" is that definitely won't be matching.

Probably like a K&L Gates. But it wouldn't surprise me if there're a decent number of firms that don't match -- it's a lot of money, especially at firms with two tiered partnerships who'd have to adjust non-equity partners accordingly too.

[Big Shrimpin]

not a chance that this becomes industry standard

ugh wish it wasn't so

[Anonymous User]

ATL's bad news bulletin: http://abovethelaw.com/2016/06/ny-to-18 ... -matching/

This article makes it look like Philly won't be matching. Makes sense since they just switched to 160k last year.

That's kind of what I'm thinking too. The relevant question for me is what happens to associates at the other offices of MLB/Dechert.

[First Offense]

“With [Monday’s] 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.”

“The Philadelphia firm leader, who requested anonymity in order to speak freely, added that he continued to be “blown away at the short memories of law firm leaders.” He said it’s possible the high-end legal services industry is heading into another downturn. In that type of climate, he added, firms are raising salaries only to then “chop the heads off their associates.”

I mean, it's true that associate pay factors into hourly rates, but how about the partners consider taking home a fraction less so they can pay their associates a market rate?

You think student debt is bad - they have alimony and child support to pay!

[LaLiLuLeLo]

“With [Monday’s] 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.”

“The Philadelphia firm leader, who requested anonymity in order to speak freely, added that he continued to be “blown away at the short memories of law firm leaders.” He said it’s possible the high-end legal services industry is heading into another downturn. In that type of climate, he added, firms are raising salaries only to then “chop the heads off their associates.”

I mean, it's true that associate pay factors into hourly rates, but how about the partners consider taking home a fraction less so they can pay their associates a market rate?

You think student debt is bad - they have alimonies and child support to pay!

There ya go. How many partners do you know that have only been divorced once?

[Anonymous User]

ATL's bad news bulletin: http://abovethelaw.com/2016/06/ny-to-18 ... -matching/

This article makes it look like Philly won't be matching. Makes sense since they just switched to 160k last year.

That's kind of what I'm thinking too. The relevant question for me is what happens to associates at the other offices of MLB/Dechert.

NY will definitely match. I'll be curious if Dechert does the same thing they had before this year where literally every other office paid NY market except Philly.

[bern victim]

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.

are you a LS student or junior associate?

edit: bc clients care more about existing/legacy relationships with partners/firms (generally) than with whether the associate pool all graduated top 10% at HYSetc...

edit 2: also many clients don't love it when firms up associate pay (this should be of no surprise to anyone)

outed as never having participated in major settlement negotiations

the first thing on the agenda is always a comparative accounting of the skill level of each side's respective attorneys

[charliekelly33]

“With [Monday’s] 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.”

Of course, increasing associate salaries does not need to lead to an increase in the price of legal services if it comes out of partner's...oh, nvm, I was going to say something stupid.