Trends in Practice
- Moving away from a billable hour based system and focusing on client needs
- Current models based of the lock-step approach.
- Cravath Scale
- All models were affected by the 2008 recession.
Points to Consider
Current Models Used in Law Firms
- Economy
- Geography
- Market Competition
- Equal Partnership
- Lock Step
- Modified Hale and Dorr
- Simple Unit
- 50/50 Subjective/Objective
- Team Building
- "Eat What You Kill"
Roadmap
- 7 Current Models used in Law Firms
- Current Trends used in Associate Compensation
- Future Trends of Associate Compensation
Trends in Practice (cont.)
- Firms in major cities are still using the Cravath Scale to remain competitive.
- Firms continue to divide compensation in two categories:
- Salary
- Bonuses
- Morgan Lewis & Bockius, LLP example
Future of Associate Compensation
My Opinion of Future of Associate Compensation
- Firms are trying to find a way to stop using the Cravath scale
- Want to use more internal factors
- Might finally lead to an increase in associate salaries
- However, firms must view client wishes
- A blend between traditional Lock-Step and modified Hale and Dorr models
- Will provide additional criteria to assess associate performance.
- This model is more client focused.
- Firms might gain more business
Questions?
2013 BTI Consulting Group
Thank You!
Trends in Law Firm Compensation