Associate Bonus Watch: Which Firm Now Offers Up To $125,000 In Associate Starting Bonuses?
That's a lot of money -- but note that this firm has very high hiring standards.
One year ago this week, the venerable firm of Cravath, Swaine & Moore raised associate salaries. This set off a chain reaction, leading other Biglaw firms and elite boutiques around the country to adopt the new $180K pay scale (or some variant thereof).
The last major pay raise took place almost a decade earlier, when Simpson Thacher raised salaries to the $160K scale. So it’s unlikely (but not impossible) that we’ll see major movement on the compensation front anytime soon.
In the meantime, expect certain thriving, hyper-elite firms to raise their pay scales in order to stay ahead of the market — which brings us to today’s news, from the renowned litigation firm of Susman Godfrey (full press release posted on the next page):
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Once again showing its willingness to lead the market on associate bonuses, national litigation firm Susman Godfrey LLP has announced that it will be paying a $25,000 sign-on bonus to lawyers accepting offers for future employment at the firm. Effective immediately, in addition to the firm’s current structure of paying incoming lawyers an $80,000 clerkship bonus if they clerked for one federal judge, and a total of $100,000 in clerkship bonuses if they clerked for two federal judges, the firm will also pay incoming lawyers a $25,000 sign-on bonus. The firm also leads the market on bonuses paid to Supreme Court law clerks.
When Susman Godfrey raised associate salaries last June, it touted a “first-year” salary of $190,000. But because all Susman associates come to the firm with at least one year of coveted clerkship experience, a “first-year” at Susman is actually a second-year at Cravath et al. So one could have argued that Susman was matching rather than beating the Cravath scale — until now.
Susman Godfrey is now a clear member in the $180K Plus Club, the small group of pathbreaking, hyper-prestigious firms that pay starting salaries in excess of the already generous Cravath scale. And don’t forget that Susman pays generous year-end bonuses — unlike another litigation powerhouse in the $180K Plus Club, Williams & Connolly (when will they raise?) — and boasts a short, seven-year partnership track. (And that counts clerkship experience, meaning that someone who clerked for two years could make partner after just five years at SG.)
UPDATE (2:27 p.m.): A clarification: one year of clerking gets counted against the track, but the second year of credit goes just to Supreme Court clerks.
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If you’re a young lawyer looking for great experience working on cutting-edge cases with brilliant colleagues, along with compensation that puts other firms to shame, then consider Susman Godfrey. It’s not easy to get a job there — the firm requires all new associates to have clerked, a sign of how selective it is in hiring, and many SG associates have done multiple clerkships (including SCOTUS clerkships) — but if you can get your foot in the door, the rewards are rich indeed.
UPDATE (6/12/2017, 1:57 p.m.): Here’s additional coverage, from the Texas Lawyer. Hiring partner Erica Harris told the publication, “We want the best candidates. We want to stand out to the best candidates. And we thought this would be a differentiator.”
(Flip to the next page to read the complete Susman Godfrey press release.)
David Lat is the founder and managing editor of Above the Law and the author of Supreme Ambitions: A Novel. He previously worked as a federal prosecutor in Newark, New Jersey; a litigation associate at Wachtell, Lipton, Rosen & Katz; and a law clerk to Judge Diarmuid F. O’Scannlain of the U.S. Court of Appeals for the Ninth Circuit. You can connect with David on Twitter (@DavidLat), LinkedIn, and Facebook, and you can reach him by email at dlat@abovethelaw.com.
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SUSMAN GODFREY — PRESS RELEASE — ASSOCIATE STARTING BONUSES
Susman Godfrey Breaks the Market for Associate Starting Bonuses, Offers up to $125,000
HOUSTON, LOS ANGELES, NEW YORK and SEATTLE (June 8th, 2017): Once again showing its willingness to lead the market on associate bonuses, national litigation firm Susman Godfrey LLP has announced that it will be paying a $25,000 sign-on bonus to lawyers accepting offers for future employment at the firm. Effective immediately, in addition to the firm’s current structure of paying incoming lawyers an $80,000 clerkship bonus if they clerked for one federal judge, and a total of $100,000 in clerkship bonuses if they clerked for two federal judges, the firm will also pay incoming lawyers a $25,000 sign-on bonus. The firm also leads the market on bonuses paid to Supreme Court law clerks.
The firm, which currently boasts nine former Supreme Court clerks amongst its 102 Partners and Associates, only hires lawyers who have clerked for federal judges. Firm founder Steve Susman states, “Requiring our new lawyers to have completed a federal clerkship assures that they have unique insight into how judges work and are able to make smart decisions in deciding what cases to take on.”
Co-Managing Partner Neal Manne adds, “The new sign-on bonus reflects our continuing commitment to recruiting, hiring and retaining the best, brightest and most capable young lawyers.”
For more information contact: Erica Harris (713) 653-7810
About Susman Godfrey LLP
For nearly 40 years, Susman Godfrey has focused its nationally recognized practice on just one thing: high-stakes commercial litigation. It is one of the nation’s leading law firms, with offices in Houston, Seattle, Los Angeles and New York. For more information, visit http://www.susmangodfrey.com.
