By David Leonhardt
February 6, 2000
In late December, a small Silicon Valley law firm, tired of losing lawyers to Internet start-ups, raised salaries for its associates by a remarkable 40 percent. Within a few weeks, larger firms in the Bay Area -- including some with offices in New York -- matched the raises. By last week, many prestigious New York firms felt compelled to follow suit and pay first-year lawyers as much as $140,000 a year before bonuses.
Stoking the fire was a group of chat boards on Yahoo! (www.clubs.yahoo.com) known as Greedy Associates where lawyers compare salary data. The boards include Unhappy Rich Associates (dubbed "A place to talk about golden handcuffs . . ."), Greedy Kansas City ("Midwesterners love money as much as anyone") and Greedy New York Associates ("The greediest of all"). "The associate grapevine is extraordinary," said Tower C. Snow Jr., chairman of San Francisco-based Brobeck, Phleger & Harrison, who said that "without question" the Greedy Associates sites have played a role in the speed of the recent raises. The chat boards also give associates, disguised by nicknames like Lady Greediva, a place to gripe about firms that pay new lawyers only $100,000 a year and a forum to engage in often vulgar banter -- none of it, of course, during billing hours.
Excerpts from recent postings follow:
In late January, before the pay increases became widespread, one exchange upbraided a New York firm that planned to give raises only to its Bay Area offices. A few associates have in fact given notice, and many more are complaining in the most vivid of terms . . . A very significant portion of the lumpenassociates (numbering several dozen) are preparing, in concert, to demand a matching raise at that meeting . . . There has even been talk of a work stoppage. . .
"Shoot, I think most of NYC associates should have a sympathy work stoppage with them (it works for French truckers, after all) -- it is outrageous. . . . It is clear that the only solution to restore order is a rapid apology and matching-or-better raise." Not surprisingly, the general feeling is that the New York firms had no excuse not to match.
"Do we demand that all NY firms pay up to the ((Silicon Valley)) standard? Do we cut the NY firms with ((per-partner profits)) lower than $500,000 a little bit of a break? I would note, in passing, that Burger King doesn't pay its flippers any less just because it is less profitable than McDonalds."
"I like my job -- no, really -- but that lake house and the new Yukon that I could have right now are constant temptations."
"My 2 cents (all I can afford, as my firm has yet to raise): . . . I don't expect firms pulling in less than 750k to be able to take the monstrous cuts to partner profits (or rather, I don't expect them to choose to)."
Firms in other cities -- including Los Angeles and Washington -- had yet to take action last week, and lawyers there were none too happy. Even some New Yorkers started to wonder how good they had it.
"If BIGLAW DC does not react with major raises, I guarantee you that BIGLAW DC will face a brain drain. Come BIGLAW DC!!!!!!!! SHOW ME THE MONEY OR I'LL SHOW MYSELF THE DOOR!!! Do any BIGLAW DC partners really think that we associates (or at least 99 percent of us) went to big firms for any other reason but the money?"
"There is no point in being a dc attorney anymore. jobs, money, and prestige are all elsewhere. I feel sorry for anyone too old to get out."
"Does anyone else think that all these raises being announced by NY firms are wishy-washy? . . . Telling me that you will pay me a bonus is no good. I want to know what it will be."
"Top law students, like myself, in the Northeast are looking Westward. NYC, DC and Boston firms are too cheap for our blood. We feel bad for the East Coast recruiters that will be sitting in empty rooms come next fall."
Occasionally, the more creative young attorneys weigh in with new renditions of popular songs, like Bob Dylan's "The Times They Are A-Changin."
Come managing partners
Throughout the land
And don't criticize
What you can't understand
Your fungible units
Are beyond your command
Your old lockstep is
Rapidly agin'.
Please announce the new one
and unclench your cash hand
For the times they are a-changin'.
Once in while, when the blood stops boiling, the musing becomes a tad more philosophical. With an almost Hegelian aura of historical inevitability, the bidding wars continue. "We may pride ourselves on greediness, but let's not forget that the partners are all former associates who have now seized the brass ring. They put our greediness to shame."
FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C íŸ 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.
