Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Just as Am Law 100 firms don’t all compete for the same set of client assignments, they don’t all compete for the same pool of associates. Thus, just as they don’t all charge the same billing rates, they shouldn’t all pay associates on the same comp scale. Instead of one-size-fits-all associate comp, Am Law 100 firms should break into distinct segments by comp scale, just as they break into different segments by billing rate. One-size-fits-all associate comp forces mid-tier firms to billing rates that clients balk at paying, thereby weakening the industry’s long-term health. It is also an unseemly gift to partners of the most profitable firms and an uncalled-for penalty on partners of middle and lower profitability firms.

There were signs this week that this much-needed segmentation may be emerging. First, we had a public statement of sound judgement from a middle-profitability Am Law 100 firm. The executive chairman of Greenberg Traurig (GT) argued that the economy was lulling law firm leaders to sleep, and cautioned against across-the-board salary increases. This sets a marker for a firewall on the ongoing salary contagion. GT ranks 56th by profit per equity partner (PPP) among the 2017 Am Law 200, close to the 45th through 55th PPP zone I’d identified last week as a sensible break point on increases.

This content has been archived.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 Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


Legal Research and Law Library ManagementBook

This revised edition of Legal Research and Law Library Management retains the best elements of the previous edition while covering the latest in law library management.

Get More Information

You Can't Manage It If You Don't Measure It

How are you illustrating differentiation to clients and potential lateral targets? How are you measuring performance against peers? Use Legal Compass to benchmark a firm against its competitors, unearthing unique insights about performance, partner retention, market penetration and more. Click to log in, or begin your free trial.

Get More Information

WIPL.UK Awards 2021Event

The WIPL.UK Awards honors the industry standouts and rising stars who are making a mark within the profession.

Get More Information

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.