We haven’t written much additional on the subject, but more law firms have continued to fall in lockstep with “the leaders” and raised their associate salaries to $160,000 plus.
Law.com has posted an article with some interesting money quotes from the clients:
"There seems to be no end in sight," said James Hall, director of intellectual property at Silicon Valley's Quantum Corp. "At some point I think it has to impact how much I'll pay in legal services ... That money has to come from somewhere."
Susan Hackett, senior vice president and general counsel of the Association of Corporate Counsel, said the recent round of raises doesn't take clients into account at all.
"The decision is completely divorced from any recognition of the value that's provided," Hackett said. "I don't see how those people who got paid $10,000 less yesterday got any more talented today."
Our thoughts exactly. We’re surprised more clients are balking. It’s obvious that they will end up subsidizing the new salaries, through higher rates or inflated reported hours.
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