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The National Association for Law Placement has completed its sixth
comprehensive survey of associate compensation with the 2000 Associate Salary
Survey report. Over 450 offices (30% with 50 or fewer attorneys and a
similar percentage — 35% — with more than 250 attorneys) provided salary
information as of April 1, 2000. For the first time, this annual survey includes
data on salaries for staff attorneys and law clerks in addition to associates
from summer programs through the eighth year.
Reflecting compensation as of April 1, 2000, NALP's salary survey is among
the few comprehensive resources reflecting the incremental salary increases that
were implemented during the first months of 2000 by many firms in response to
the January boost by Silicon Valley firms. The data provided a balanced
perspective on compensation of associates and documents the final outcome of the
"salary wars of 2000" across all firm sizes.
The median salary for first-year associates ranged from $60,000 in firms of
2-25 attorneys to $110,000 in firms of 500 attorneys or more, with a first-year
median for all participating firms of $85,000. A comparison with figures
reported 12 months earlier, as of April 1999, shows a dramatic increase in
first-year salaries, especially in larger firms. In firms of 251 or more
attorneys, the median increased by 30% or more than $25,000.
As expected, each year of associate experience brings several thousand
dollars in increased compensation: median salaries for eighth-year associates
ranged from $81,000 in small firms to $165,000 in the largest firms, with a
median for all participating firms of $120,000.
The volume of data allowed analyses for 23 individual cities as well as many
additional states and regions not encompassed by those cities. These analyses
reveal a wide range of law firm compensation. For example, the median salary for
first-year associates in all firms of over 251 attorneys in the Northeast was
$125,000, with reported salaries ranging from $84,000 to $128,800. For firms of
251 or more in the Midwest, the median first-year salary was $95,000, with
reported salaries ranging from $65,000 to $125,000. In comparison, while a
first-year associate in a large firm in Washington, D.C. or San Francisco might
earn in excess of $110,000, the median salary for a first-year associate in St.
Louis was $71,000. Contrasts between large cities and smaller metropolitan areas
are also evident. The median salary for a fourth-year associate in Los Angeles
was $155,000; for firms reporting from other areas of California, the median was
$101,000.
More limited data on salaries for intellectual property attorneys suggest
that IP attorneys command a premium of about $15,000. This year's survey also
included information on salaries for staff attorneys and law clerks. Although
many survey participants did not have such positions in their firm, for those
that do, staff attorney salaries are typically $75,000 per year while law clerks
average $30 per hour.
The survey also reports the aggregate compensation and bonus systems at
participating firms and the prevalence and size of bonuses for prior judicial
clerks. Aggregate compensation includes bonuses in addition to base pay. For
first-year associates aggregate compensation ranged from $42,000 to $139,625
nationwide. Among the findings regarding bonus systems: 55% of firms use a
discretionary basis as one means of determining eligibility for bonuses.
Two-thirds of firms of 2-25 and 51-100 do so, compared with about half of other
sizes. Many firms (59%) use "meeting fixed goals" as a determinate of
eligibility — 24% of small firms consider this factor, while over three-quarters
of the largest firms do so. Bonus amounts were based on various factors, the
most common of which were merit/performance (66% of offices offering associates
bonuses), billable hours (60%), and discretion (44%). About one-third of the
firms reported paying a bonus to prior judicial clerks, with large firms most
likely to offer bonuses. Bonuses of $5,000-$10,000 were most typical.
Median Base Salaries by Associate Year and Firm Size (as of
April 1, 2000)
| Associate Year |
FIRM SIZE - Number of
Attorneys |
| 2-25 |
26-50 |
51-100 |
101-250 |
251-500 |
501 or more |
All Sizes |
| First |
$60,000 |
$63,000 |
$70,000 |
$75,000 |
$100,000 |
$110,500 |
$85,000 |
| Second |
67,500 |
67,500 |
73,500 |
80,500 |
110,000 |
120,000 |
90,750 |
| Third |
57,500 |
72,750 |
78,000 |
84,375 |
113,000 |
128,800 |
96,000 |
| Fourth |
70,000 |
75,000 |
80,000 |
90,000 |
115,500 |
140,000 |
100,250 |
| Fifth |
85,000 |
83,500 |
83,250 |
97,000 |
126,500 |
150,000 |
107,000 |
| Sixth |
80,000 |
88,500 |
89,150 |
98,000 |
130,000 |
162,500 |
114,000 |
| Seventh |
86,250 |
85,000 |
90,000 |
107,000 |
137,000 |
170,000 |
120,000 |
| Eighth |
81,000 |
76,500 |
94,475 |
102,000 |
135,000 |
165,000 |
120,000 |
| Summer (weekly): |
| First-year summer |
-- |
1,000 |
1,300 |
1,250 |
1,625 |
2,000 |
1,423 |
| Second-year summer |
1,025 |
1,100 |
1,346 |
1,300 |
1,700 |
2,000 |
1,500 |
| Third-year summer |
-- |
1,050 |
1,346 |
1,350 |
1,570 |
2,000 |
1,500 |
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