Calculating total compensation Forum

[Anonymous User]

This year I am completing a 1-year clerkship. I will start at a market-paying biglaw firm sometime late next summer (probably August). I get a year of class credit. But what does that mean?

Do I start at $200,000 or $220,000? And would I move up a third year's salary that first January (four months after starting) or the January after (sixteen months after starting)? Sorry if this question has been answered elsewhere.

[2013]

What JD class year are you?

2018? Then you’ll be moving to $200k in January.

2017? Then you’ll be moving to $220k in January.

2019 is stub year, so that doesn’t count as a “year.”

[Anonymous User]

2013's calculation doesn't seem accurate based on what OP is describing as her situation. OP is in a 1-year clerkship now, to start at a firm in August 2020 ("late next summer"). Presumably means OP is a JD'19. If JD'19, it means that you will be treated--at least for compensation purposes--as if you were at the firm during the time you were clerking, which puts you in the same "class year" for compensation purposes as those with whom you summered (i.e., January 2021 will be your bump to $200k; you will be making $190k, as will the rest of your summer-class comrades, from August 2020 to December 2020). Regarding total compensation, your bonus will be that of your fellow summers, too ($15,000), but yours will be pro-rated based on the time you spent with the firm in 2020, so not a full $15,000 bonus. But you'll get a clerkship bonus, most likely. That one varies firm-to-firm, though.

[TigerIsBack]

2013's calculation doesn't seem accurate based on what OP is describing as her situation. OP is in a 1-year clerkship now, to start at a firm in August 2020 ("late next summer"). Presumably means OP is a JD'19. If JD'19, it means that you will be treated--at least for compensation purposes--as if you were at the firm during the time you were clerking, which puts you in the same "class year" for compensation purposes as those with whom you summered (i.e., January 2021 will be your bump to $200k; you will be making $190k, as will the rest of your summer-class comrades, from August 2020 to December 2020). Regarding total compensation, your bonus will be that of your fellow summers, too ($15,000), but yours will be pro-rated based on the time you spent with the firm in 2020, so not a full $15,000 bonus. But you'll get a clerkship bonus, most likely. That one varies firm-to-firm, though.

Agreed with anon above. Sounds like your "1 year of credit" is just to put you on par with those who graduated when you did.

So class of '19 grads will be making $190k through December 2020, and then go to $200k in January 2021.

[2013]

I misread the question. My mistake.

[Anonymous User]

OP here. Thanks for the responses. Seems like I was miscounting the stub year.