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Yearly compensation increase rate in market-rate firms vs. non-market rate firms?
Posted: Mon Apr 12, 2021 10:32 am
by Anonymous User
Disclaimer: Compensation numbers were just to make calculation easier; not trying to disparage anyone or imply anything.
Is there a typical pattern in compensation scheme observed throughout the country regardless of the firm's size/structure, or is anything non-market just too unpredictable and specific to individual firms?
For example, suppose compensation at a market-rate biglaw goes up by 5% every year, so that a first-year who makes $200k would make $210k next year. Now, suppose a first-year at a midlaw makes $100k. Is it reasonable to expect that a second-year would make $105k at the same firm?
Re: Yearly compensation increase rate in market-rate firms vs. non-market rate firms?
Posted: Mon Apr 12, 2021 10:42 am
by Buglaw
Anonymous User wrote: ↑Mon Apr 12, 2021 10:32 am
Disclaimer: Compensation numbers were just to make calculation easier; not trying to disparage anyone or imply anything.
Is there a typical pattern in compensation scheme observed throughout the country regardless of the firm's size/structure, or is anything non-market just too unpredictable and specific to individual firms?
For example, suppose compensation at a market-rate biglaw goes up by 5% every year, so that a first-year who makes $200k would make $210k next year. Now, suppose a first-year at a midlaw makes $100k. Is it reasonable to expect that a second-year would make $105k at the same firm?
The markets are different. Once you get away from market, compensation is all over the board. I don't think any generalizations can be made.
Re: Yearly compensation increase rate in market-rate firms vs. non-market rate firms?
Posted: Mon Apr 12, 2021 11:12 am
by publius365
Buglaw wrote: ↑Mon Apr 12, 2021 10:42 am
Anonymous User wrote: ↑Mon Apr 12, 2021 10:32 am
Disclaimer: Compensation numbers were just to make calculation easier; not trying to disparage anyone or imply anything.
Is there a typical pattern in compensation scheme observed throughout the country regardless of the firm's size/structure, or is anything non-market just too unpredictable and specific to individual firms?
For example, suppose compensation at a market-rate biglaw goes up by 5% every year, so that a first-year who makes $200k would make $210k next year. Now, suppose a first-year at a midlaw makes $100k. Is it reasonable to expect that a second-year would make $105k at the same firm?
The markets are different. Once you get away from market, compensation is all over the board. I don't think any generalizations can be made.
This. It's heavily market- and firm-dependent.
Re: Yearly compensation increase rate in market-rate firms vs. non-market rate firms?
Posted: Mon Apr 12, 2021 3:01 pm
by Anonymous User
I agree that there’s no generalized answer to this, but as one data point, I started off in the Texas office of a southeastern firm with 700+ attorneys. My starting salary was $100k back when the Texas market salary was $160k. As a second year, my salary increased to $110k. I ended up lateraling to BigLaw, but my salary was going to be $115k as a third year had I stayed. This particular firm used salary ranges for class years based on performance, so not everyone made the exact same amount, but you could generally expect a $5-10k increase per year.
Re: Yearly compensation increase rate in market-rate firms vs. non-market rate firms?
Posted: Tue Apr 13, 2021 1:14 am
by Anonymous User
I’m in secondary market like Phoenix SLC etc. and our bumps are pretty much $5k per year and that’s the most of the market too regardless of being a satellite office of a bigger Amlaw firm or regional firm.