What Do — And Should — In-House Lawyers Think About The Biglaw Pay Raises?
David Lat of Above the Law muses on the effect the most recent round of pay increases for BigLaw associates could have on the people who ultimately make the pay raises possible: the clients.
Cravath, Swaine & Moore recently announced it will start paying first-year associates annual salaries of $180,000, and some other firms have followed suit.
The article quotes some current and former in-house counsel with reservations about the Biglaw pay raises. “I understand that junior attorneys need training, but considering how much money these large firms make, why should the client have to pay for it?,” asks one in-house lawyer.
Another in-house lawyer said, “clients don’t notice the change, if at all, until the next negotiation over rates.”
“If firms try to pass too much of their increased overhead on to clients, the clients will balk — and in this day and age, with competition from great boutiques and alternative legal services providers, clients have significant leverage,” writes Lat.
