Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The hottest issue that US in-house counsel will have grappled with at the start of the New Year is how to deal with the fall-out from last year’s 50% bump in US associate salaries, followed by the inflated year-end bonuses for associates at leading Wall Street firms. Although US in-housers are groaning loudly about the impact that the salary spike will have on their legal budgets, it is unlikely that the increase in costs will be noticed in corporate boardrooms. After all, legal fees are still a small fraction of general and administrative (G&A) costs. It does not take a high IQ to figure out the real driving force behind in-housers’ unhappiness with associate salaries: first-year associates are now making more than most mid-level and many senior corporate law department lawyers. A few in-housers with children fresh out of law school have observed that their kids are making more than they are, with 30 years’ less experience in practising law. This has been a tough pill for mom and pop to swallow.As the magic circle firms decide what to do about the disparity in associate pay across the pond, it is worth a few words to say what the City can expect to see in the way of cost-management efforts, because a very unhappy lot of in-house lawyers veil their revenge on Gundersons’ pay raise and its progeny.

This premium content is reserved for
Legal Week Subscribers.


  • Trusted insight, news and analysis from the UK and across the globe
  • Connections to senior business lawyers within the leading law firms and legal departments
  • Unique access to ALM's unrivalled, market-leading reporting in the US and Asia and cutting-edge research, including Legal Week's UK Top 50 and Global 100 rankings
  • The Legal Week Daily News Alert, Editor's Highlights, and Breaking News digital newsletters and more, plus a choice of over 70 ALM newsletters
  • Optimized access on all of your devices: desktop, tablet and mobile
  • Complete access to the site's full archive of more than 56,000 articles

Already have an account?

For enterprise-wide or corporate enquiries, please contact Paul Reeves on Preeves@alm.com or call on +44 (0) 203 875 0651


Legal Week Newsletters & Alerts

Sign Up Today and Never Miss Another Story.

As part of your subscription, you can sign up for an unlimited number of a wide range of complimentary newsletters and alerts. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2019 American Lawyer Media International, LLC. All Rights Reserved.