Associate Raises Squeeze BigLaw Partners

Paying associates more has helped BigLaw firms retain young lawyers, but that salary bump has come out of partners’ pockets and may lead to a decline in partnerships. Last summer Cravath Swaine & Moore opened the door for raising associate salaries when it announced it would pay first-year lawyers $180,000. That was a significant uptick from the $160,000-per-year salary that had been the standard for nearly a decade. Other law firms moved to match Cravath, but paying for that sudden hike could mean pay cuts for non-equity partners and fewer partnerships overall. Fewer partnerships mean that those many new associates have a harder path to the upper echelon of career success. However, the raises are prompting a demonstrable increase in associate retention for big firms, according to Major Lindsey & Africa’s Michelle Fivel.