LIFESTYLES OF THE RICH AND SLEEPLESS - Last week, we told you about a survey that found lawyers and aspiring lawyers in Gen-Z are moving away from Big Law and traditional law firm career paths and instead setting their sights on midsize firms and boutiques. But if it’s better work-life balance they’re after, they may want to start looking for other options. As legal recruiters and consultants told Law.com’s Dan Roe, recent (and really big) compensation hikes among smaller firms are likely to put pressure on those firms to squeeze profitability out of their more-expensive associates. “Oftentimes small and midsize firms sell themselves to talent as more of a lifestyle option, and they try to recruit on the notion that they’re not Big Law,” said Kristin Stark, principal at Fairfax Associates. “Associates come in believing they’re going to have to work less and not hit as high of a number of billable hours. In order for these firms to keep up, they’re going to have to increase billable hour expectations and rates.”
BONUS BIAS - As Law.com’s Trudy Knockless reports, a new study has found that bonuses are making up a growing percentage of GC pay—and this trend is complicating efforts to wipe out pay disparities between men and women. “Annual bonuses are typically based upon company and individual performance. While a company’s performance is usually determined by objective facts, subjective judgments are common when assessing individual performance. This opens the door to implicit biases that can brew gender inequality into a company’s compensation decisions,” according to the recently released 2022 In-House Compensation Survey from Major, Lindsey & Africa. The survey of more than 3,300 attorneys from 46 countries noted that bonuses now represent 40% to 50% of GC compensation in the U.S. and that men are scooping up significantly larger bonuses than women.
