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NALP Survey Details Private Practice Compensation Ranges
NALP announces publication of its annual comprehensive survey of associate
compensation, the 2005 Associate Salary Survey report. A total of 573
offices provided salary information as of April 1, 2005. With 17% of respondents
representing firms of 50 or fewer lawyers and 30% representing firms of more
than 500 lawyers, the survey report sheds valuable light on the breadth of
salary differentials among employers of varying sizes.
The median salary for first-year associates ranged from $67,500 in firms of
2-25 attorneys to $125,000 in firms of more than 500 lawyers, with a first-year
median for all participating firms of $100,000. A comparison with figures
reported for the prior five years reveals that first-year salaries have remained
stable in firms of 251 or more lawyers during this period, with a median of
about $110,000. This is in sharp contrast to a 30% increase in the median from
April 1999 to April 2000. In some major cities, such as Los Angeles and New York
City, as well as the Silicon Valley area, the prevailing salary of $125,000 for
first-year associates in large firms has remained unchanged since April 2000.
Similar salary stability was last experienced a decade ago in the
mid-nineties.
As expected, each year of associate experience brings several thousand
dollars in increased compensation: median salaries for eighth-year associates
ranged from $109,000 in small firms to $181,500 in the largest firms, with a
median for all reporting firms of $145,000.
The volume of data in this year’s survey allowed analyses for 31 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
lawyers was highest in the Northeast, at $125,000, followed by $112,500 in the
West, and $105,000 and $95,000 in the South and Midwest, respectively. The
highest first-year salary reported was $130,000. The typical salary for
first-year associates in large firms stood at $125,000 in a number of cities
beyond New York — these include Boston, Chicago, Los Angeles, the San Francisco
Bay area, and Washington, D.C. In contrast, medians in somewhat smaller
metropolitan areas such as Cincinnati, Hartford, Indianapolis, Portland, OR, and
Sacramento were in the mid to upper 80’s. Contrasts between large cities and
smaller metropolitan areas within the same state are also evident. For example,
in firms reporting from areas in California outside Los Angeles, San Diego,
Sacramento, and San Francisco Bay area, the first-year median was $80,000.
The 2005 Associate Salary Survey also gathered data on salaries for
intellectual property lawyers as well as general data on salary levels for staff
attorneys and law clerks. Though data on salaries for intellectual property
attorneys was more limited, it clearly suggests that IP lawyers command a salary
that is $15,000 to $30,000 higher, with the larger differentials among more
senior associates.
Additional findings show that salaries for staff attorneys are typically
$88,000 per year, while the median hourly salaries for law clerks range from $23
to $40 per hour depending on firm size.
The survey also reports on bonus systems at participating firms and the
prevalence and size of bonuses for prior judicial clerks. Among the findings on
bonus systems: almost three-quarters of firms use discretion as a factor to
determine eligibility for bonuses. Almost two-thirds of firms use “meeting fixed
goals” as a determinant of eligibility, although firms of 101-250 lawyers and
251-500 lawyers are most likely to do so—74% and 84%, respectively. Bonus
amounts were based on various factors, the most common of which were billable
hours (74% of offices offering associate bonuses), merit (70%), and discretion
(62%). Most (75%) of the largest firms of 501 or more lawyers reported paying a
bonus to prior judicial clerks. Relatively few smaller firms did so. Bonuses of
$10,000 - $15,000 were most typical.
More detailed results by city and region, including medians, averages, and
ranges of base salaries for associates through the eighth year, as well as
information on aggregate compensation for associates, and compensation
structures, are found in the complete 2005 Associate Salary Survey.
Median Base Salaries by Associate Year and Firm Size (as of
April 1, 2005)
Associate Year |
FIRM SIZE — Number of Lawyers |
| 2-25 |
26-50 |
51-100 |
101-250 |
251-500 |
501 or More |
All Sizes |
| Median |
# |
Median |
# |
Median |
# |
Median |
# |
Median |
# |
Median |
# |
Median |
# |
| First |
$67,500 |
31 |
$80,000 |
33 |
$83,000 |
71 |
$88,000 |
75 |
$105,000 |
142 |
$125,000 |
135 |
$100,000 |
487 |
| Second |
75,000 |
33 |
86,000 |
33 |
86,000 |
61 |
91,400 |
62 |
108,000 |
130 |
130,000 |
132 |
105,000 |
451 |
| Third |
77,250 |
30 |
83,000 |
27 |
89,000 |
64 |
93,600 |
63 |
111,875 |
136 |
135,000 |
142 |
110,000 |
462 |
| Fourth |
88,000 |
26 |
92,927 |
29 |
94,000 |
58 |
97,000 |
61 |
118,300 |
128 |
145,000 |
139 |
116,000 |
441 |
| Fifth |
91,000 |
29 |
93,000 |
35 |
95,000 |
57 |
101,000 |
62 |
125,000 |
130 |
153,225 |
140 |
122,500 |
453 |
| Sixth |
94,000 |
25 |
98,000 |
27 |
97,510 |
58 |
107,000 |
57 |
131,250 |
128 |
165,000 |
141 |
130,000 |
436 |
| Seventh |
97,000 |
19 |
98,000 |
24 |
101,500 |
52 |
111,625 |
56 |
136,625 |
128 |
175,000 |
137 |
136,125 |
416 |
| Eighth |
109,000 |
23 |
108,000 |
32 |
105,554 |
51 |
117,917 |
46 |
144,333 |
89 |
181,500 |
121 |
145,000 |
362 |
| 1st-yr summer ($/week) |
950 |
14 |
1,225 |
18 |
1,500 |
41 |
1,500 |
55 |
2,166 |
58 |
2,400 |
110 |
1,937 |
296 |
| 2nd-yr summer ($/week) |
1,200 |
19 |
1,400 |
30 |
1,540 |
62 |
1,642 |
56 |
2,000 |
86 |
2,400 |
122 |
1,909 |
375 |
| 3rd-yr summer ($/week) |
1,100 |
8 |
1,300 |
11 |
1,540 |
28 |
1,350 |
22 |
2,025 |
19 |
2,400 |
61 |
2,000 |
149 |
Note: The # column indicates the number of employers reporting in each
category.
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