Which Lone Star Law Firm Will Make the First Associate Salary Move?
Texas firms taking time to consider whether to meet new, higher market rates for associate salaries.
June 18, 2018 at 08:13 PM
3 minute read
In the ongoing chess game of associate salary raises, Texas firms seem to be waiting for someone else to make the first move.
A number of large firms around the country, including many with offices in Texas, have announced raises in the wake of Milbank, Tweed, Hadley & McCloy's move on June 4 to announce a $190,000 starting salary for first-year associates. A week later, Cravath, Swaine & Moore then matched the Milbank scale and agreed to pay more for midlevel and senior associates. But no large local firms have stepped ahead of the Lone Star State pack as of yet.
This coming weekend, partners at Houston-based litigation boutique Susman Godfrey are meeting in Seattle for a retreat where associate salaries will be a topic of discussion, said Neal Manne, a managing partner of the high-powered firm, which is known for paying big money to recruit young talent.
“If I were a betting man … discussion would not be about meeting the Milbank-Cravath scale. It'll be about surpassing it,” Manne said last week.
Surpassing the new market rate for first-year salaries and the higher scale isn't a reach for Susman Godfrey, which also has offices in Los Angeles, New York and Seattle. The firm has been paying its first years a starting salary of $190,000 since July 1, 2016, when the firm made that salary move in response to the $180,000 salary scale previously set by Cravath in 2016.
At that time two years ago, Vinson & Elkins was the first big, Texas-based firm to announce salary hikes for its associates in response to Cravath's move, but many other large local firms also increased associate pay levels within the next few weeks—although not necessarily to the $180,000 first-year market level initially set by Cravath.
Vinson & Elkins has not yet made any announcements on the associate salary front. A number of other large firms in Texas are also not ready to announce anything.
“As with many firms we are reviewing the recent increase in associate compensation announced by several firms,“ said a statement from Baker Botts. “While we have not made a final decision we will, as we have in the past, remain competitive in terms of compensation packages.“
Managing partners of two Texas firms who were contacted about their firm's plans for associate raises also weren't ready to discuss the issue at all. One unnamed managing partner said he'd “rather duck” the issue right now.
Phil Appenzeller, CEO of Munsch Hardt Kopf & Harr, a regional firm with offices in Austin, Dallas and Houston that currently pays a $160,000 starting salary to first-year lawyers, said his firm constantly evaluates associate compensation and is cognizant of what competitors are doing.
“At this point, we aren't planning to make a move,“ Appenzeller said. “I'm not saying that won't change.“
Appenzeller added that Texas-based firms have to think about how clients will react to associate salary increases.
“Our clients understand that if we make those kind of moves, we have to make rates move, and I don't think clients want to pay for it,” he said.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSeyfarth Launches Energy Transactions Practice in Houston With Polsinelli Team
3 minute readTrending Stories
- 1'Largest Retail Data Breach in History'? Hot Topic and Affiliated Brands Sued for Alleged Failure to Prevent Data Breach Linked to Snowflake Software
- 2Former President of New York State Bar, and the New York Bar Foundation, Dies As He Entered 70th Year as Attorney
- 3Legal Advocates in Uproar Upon Release of Footage Showing CO's Beat Black Inmate Before His Death
- 4Longtime Baker & Hostetler Partner, Former White House Counsel David Rivkin Dies at 68
- 5Court System Seeks Public Comment on E-Filing for Annual Report
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250