Milbank/Davis Polk/Cravath Scale: NYC to 215-415k Forum

[cornerstone]

I wonder if the delay is intentional in the sense that DPW wants everyone to think it's a harder decision this time around. The partners must be thinking these special bonuses have to end at some point, so slow walking the raise this time might be their way of signaling that.

[Anonymous User]

I wonder if the delay is intentional in the sense that DPW wants everyone to think it's a harder decision this time around. The partners must be thinking these special bonuses have to end at some point, so slow walking the raise this time might be their way of signaling that.

I don't think partnerships are that strategic. I'm going Occam's Razor here and thinking that the reason there's a delay is the DPW partnership is in the middle of a bad in-fight about the comp decision and can't get their shit together.

[Anonymous User]

.

[NoLongerALurker]

what the fuck is wrong with you

+1.


Also my new theory is that DPW already had something set, locked and loaded to announce mid-Feb and is sticking to it, but wasn't going to let other announcements accelerate their timeline..

[Monochromatic Oeuvre]

DPW SCALE + SPECIAL BONUS FOR ASSOCIATES IN GOOD STANDING!!

1st years 2021 225K + 20K
2nd years 2020 240K + 30K
3rd years 2019 265K + 60K
4th years 2018 300K + 80K
5th years 2017 345K + 100K
6th years 2016 370K + 110K
7th years 2015 390K + 120K
8th years 2014+ 400K + 120K

No, not really.

Too late, Staci Zaretsky is already gonna roll with this.

[Anonymous User]

DPW SCALE + SPECIAL BONUS FOR ASSOCIATES IN GOOD STANDING!!

1st years 2021 225K + 20K
2nd years 2020 240K + 30K
3rd years 2019 265K + 60K
4th years 2018 300K + 80K
5th years 2017 345K + 100K
6th years 2016 370K + 110K
7th years 2015 390K + 120K
8th years 2014+ 400K + 120K

No, not really.

Too late, Staci Zaretsky is already gonna roll with this.

Although this was a mean trick that I did not appreciate, I do think it'd be fun to speculate what we think a potential raise/special bonus scale would look like. That's what made the last DPW delay somewhat bearable. I predict the following:

2021: 220k + 15k
2020: 230k + 22k
2019: 260k + 40k
2018: 300k + 52k
2017: 340k + 60k
2016: 365k + 67k
2015: 380k + 72k
2014: 395k + 72k

This would be a salary increase of 5-15k depending on class year (midlevels getting the largest bump), and special bonuses slightly higher than the 2021 scale (by about 5-8k, depending on class year). Special bonus split equally between spring and fall payments.

[Anonymous User]

Sooo if DPW is unlikely to announce a raise during their Thursday townhall. They'll definitely, definitely want to do it prior to the townhall right? Good morale going into it. Today is the day!

Wishful delusions.

[Anonymous User]

Sooo if DPW is unlikely to announce a raise during their Thursday townhall. They'll definitely, definitely want to do it prior to the townhall right? Good morale going into it. Today is the day!

Wishful delusions.

This is a terrible take. Obviously they're going to announce next Wednesday, February 16, at 12:44pm. How can you NOT see that? Storm is coming folks, WWG1WGA, and all that.

[Anonymous User]

At what point would attorneys start co sodering lateralling? That's the real constraint on these firms' decisions I think.

I'm guessing we're nowhere near that point yet - we're all still completely convinced that a match and a true up are coming. But another month of radio silence might give some people doubts.

[Anonymous User]

At what point would attorneys start co sodering lateralling? That's the real constraint on these firms' decisions I think.

I'm guessing we're nowhere near that point yet - we're all still completely convinced that a match and a true up are coming. But another month of radio silence might give some people doubts.

The lateral market I'm in continues to be white hot. I get calls all the time with talk of huge lateral signing bonuses. I don't think people should underestimate how easy it is to move firms right now. Right now, we're at the 3-week mark and so no I don't think it's a major factor. But another few weeks with some recruiter on the other end dangling a 50, 75, 100k signing bonus? Why the fuck not? There really isn't precedent for what the legal market is like right now unless you go all the way back to like 2000.

[AureliusCapital]

Today is the day

[TigerIsBack]

DPW SCALE + SPECIAL BONUS FOR ASSOCIATES IN GOOD STANDING!!

1st years 2021 225K + 20K
2nd years 2020 240K + 30K
3rd years 2019 265K + 60K
4th years 2018 300K + 80K
5th years 2017 345K + 100K
6th years 2016 370K + 110K
7th years 2015 390K + 120K
8th years 2014+ 400K + 120K

No, not really.

Too late, Staci Zaretsky is already gonna roll with this.

Although this was a mean trick that I did not appreciate, I do think it'd be fun to speculate what we think a potential raise/special bonus scale would look like. That's what made the last DPW delay somewhat bearable. I predict the following:

2021: 220k + 15k
2020: 230k + 22k
2019: 260k + 40k
2018: 300k + 52k
2017: 340k + 60k
2016: 365k + 67k
2015: 380k + 72k
2014: 395k + 72k

This would be a salary increase of 5-15k depending on class year (midlevels getting the largest bump), and special bonuses slightly higher than the 2021 scale (by about 5-8k, depending on class year). Special bonus split equally between spring and fall payments.

Co-signing this scale. Today is the day. (Have no facts to back up either comment).

[Res Ipsa Loquitter]

Why do we all think it's going to be Davis Polk? I understand they set the most recent 205+ scale and pushed the limit on COVID-era special bonuses -- do they have any other historical track record of being the compensation leader?

[Anonymous User]

Why do we all think it's going to be Davis Polk? I understand they set the most recent 205+ scale and pushed the limit on COVID-era special bonuses -- do they have any other historical track record of being the compensation leader?

Their PPP is bonkers

[Anonymous User]

My sources say that DPW is indeed planning to SHATTER the Milbank scale, but they are frontrunning the lobster market first. Only *after* acquiring an interest in all domestic lobster production will they start doling out that sweet $220k+ comp. DPW will then recoup the increased cost of associate pay by charging monopoly prices on lobster from lobster-hungry associates.

/s

[Anonymous User]

It would be interesting if the V10 elected not to raise. I don’t think it would affect retention levels all that much. For many people, status is more enticing than money. Perfect example is the London market. Lots of associates stay put in magic circle firms, despite being able to lateral for a US outfit and make six figures more.

[Anonymous User]

It would be interesting if the V10 elected not to raise. I don’t think it would affect retention levels all that much. For many people, status is more enticing than money. Perfect example is the London market. Lots of associates stay put in magic circle firms, despite being able to lateral for a US outfit and make six figures more.

They'll match, but I agree it wouldn't affect retention all that much if they didn't. Few people would lateral solely for the sake of a 10-15k raise. It would certainly affect recruiting though.

[Anonymous User]

It would be interesting if the V10 elected not to raise. I don’t think it would affect retention levels all that much. For many people, status is more enticing than money. Perfect example is the London market. Lots of associates stay put in magic circle firms, despite being able to lateral for a US outfit and make six figures more.

They'll match, but I agree it wouldn't affect retention all that much if they didn't. Few people would lateral solely for the sake of a 10-15k raise. It would certainly affect recruiting though.

Disagree with this part strongly. In this market, they would. I certainly would. It's extremely easy to get hired right now and you get a lateral bonus on top of it. What difference does it make if I make sausage for Wilmer or Ropes? Maybe that'll be different in 12 months time but that's an issue for a year from now.

[Anonymous User]

It would be interesting if the V10 elected not to raise. I don’t think it would affect retention levels all that much. For many people, status is more enticing than money. Perfect example is the London market. Lots of associates stay put in magic circle firms, despite being able to lateral for a US outfit and make six figures more.

They'll match, but I agree it wouldn't affect retention all that much if they didn't. Few people would lateral solely for the sake of a 10-15k raise. It would certainly affect recruiting though.

Disagree with this part strongly. In this market, they would. I certainly would. It's extremely easy to get hired right now and you get a lateral bonus on top of it. What difference does it make if I make sausage for Wilmer or Ropes? Maybe that'll be different in 12 months time but that's an issue for a year from now.

Yeah, people are wild if they don't think a lot of people will start making moves. If not even for the 10k, then for the security of knowing you're at a "market" or "above-market" firm in case these salary raises continue to happen.

[Anonymous User]

Why do we all think it's going to be Davis Polk? I understand they set the most recent 205+ scale and pushed the limit on COVID-era special bonuses -- do they have any other historical track record of being the compensation leader?

Their PPP is bonkers

PPP at KE/PW/STB/SC is just as wild

[cornerstone]

Why do we all think it's going to be Davis Polk? I understand they set the most recent 205+ scale and pushed the limit on COVID-era special bonuses -- do they have any other historical track record of being the compensation leader?

Their PPP is bonkers

PPP at KE/PW/STB/SC is just as wild

This gets rehashed every couple of pages. KE/PW/SC have never made comp moves, so we don't have any reason to think they will now. I think STB has a couple times, but recent history says it's DPW or CSM that will move, if any. Search ATL and you can see who made moves.

Partners don't just sit there with their outsized PPP and think "oh gee, I'm making a lot of money, I better give some to the associates." They pay out more only when they think they have to. Plus, for firms with high PPP built on extreme leverage rather than higher rates (not the firms IDed above), raising associate salaries will have a relatively dent on the partners' bottom line.

[Anonymous User]

Why do we all think it's going to be Davis Polk? I understand they set the most recent 205+ scale and pushed the limit on COVID-era special bonuses -- do they have any other historical track record of being the compensation leader?

I believe they re-raised Simpson on the 2014 bonus raise as well, and may have come over the top on one or two of the other increases since. They have a fairly well established history of re-raising in recent years. Other firms clearly have seen that and are waiting for them to speak.

[Anonymous User]

Why do we all think it's going to be Davis Polk? I understand they set the most recent 205+ scale and pushed the limit on COVID-era special bonuses -- do they have any other historical track record of being the compensation leader?

Their PPP is bonkers

PPP at KE/PW/STB/SC is just as wild

This gets rehashed every couple of pages. KE/PW/SC have never made comp moves, so we don't have any reason to think they will now. I think STB has a couple times, but recent history says it's DPW or CSM that will move, if any. Search ATL and you can see who made moves.

Partners don't just sit there with their outsized PPP and think "oh gee, I'm making a lot of money, I better give some to the associates." They pay out more only when they think they have to. Plus, for firms with high PPP built on extreme leverage rather than higher rates (not the firms IDed above), raising associate salaries will have a relatively dent on the partners' bottom line.

KE and SC would not lead on raising even if it meant saving their best associates from a burning building.

[Anonymous User]

It would be interesting if the V10 elected not to raise. I don’t think it would affect retention levels all that much. For many people, status is more enticing than money. Perfect example is the London market. Lots of associates stay put in magic circle firms, despite being able to lateral for a US outfit and make six figures more.

They'll match, but I agree it wouldn't affect retention all that much if they didn't. Few people would lateral solely for the sake of a 10-15k raise. It would certainly affect recruiting though.

Disagree with this part strongly. In this market, they would. I certainly would. It's extremely easy to get hired right now and you get a lateral bonus on top of it. What difference does it make if I make sausage for Wilmer or Ropes? Maybe that'll be different in 12 months time but that's an issue for a year from now.

Yeah, people are wild if they don't think a lot of people will start making moves. If not even for the 10k, then for the security of knowing you're at a "market" or "above-market" firm in case these salary raises continue to happen.

It's absolute stupidity. Not specifically retention/lateral effect, but I start at a "prestigous" NY firm next year (STB/PW) and I would've accepted my Milbank offer over them in a heartbeat if they were confirmed below market during OCI.

[Anonymous User]

Why do we all think it's going to be Davis Polk? I understand they set the most recent 205+ scale and pushed the limit on COVID-era special bonuses -- do they have any other historical track record of being the compensation leader?

Their PPP is bonkers

PPP at KE/PW/STB/SC is just as wild

This gets rehashed every couple of pages. KE/PW/SC have never made comp moves, so we don't have any reason to think they will now. I think STB has a couple times, but recent history says it's DPW or CSM that will move, if any. Search ATL and you can see who made moves.

Partners don't just sit there with their outsized PPP and think "oh gee, I'm making a lot of money, I better give some to the associates." They pay out more only when they think they have to. Plus, for firms with high PPP built on extreme leverage rather than higher rates (not the firms IDed above), raising associate salaries will have a relatively dent on the partners' bottom line.

KE and SC would not lead on raising even if it meant saving their best associates from a burning building.

KE sees itself as “above market” and thus will never, ever, ever be the one who sets the market. Also, they save their cash for lateral bonuses because they see that as the more valuable talent pipeline.