NALP Bulletin, September 2001
Changes in how law firms determine associates' eligibility for bonuses and, of course, in starting salaries are evident based on NALP's Associate Salary Survey reports from 1996 through 2001. As Table 1 shows, firms are more likely now than they were in 1996 to use "meeting goals or targets" as one means of determining eligibility for bonuses. Larger firms remain more likely to use this criterion than smaller firms. Eligibility based on discretion or merit has also shown an increase among larger firms.
The magnitude of salary increases over the past five years is evident from Tables 2 and 3, with an increase of nearly 60% in the largest firms. Notable, however, is the essentially flat median among the largest firms overall in 2000 and 2001, and in New York and Los Angeles specifically. Also, for the first time New York no longer claims the highest median starting salary.
Table 1. Associate Bonus Eligibility — 1996-2001
(percent
of offices)
|
Number of Attorneys | ||||||||
|
Based on meeting |
2-10 |
11-25 |
26-50 |
51-100 |
101-250 |
251 or more |
251-500 |
501 or more |
|
1996 |
17.5 |
20.2 |
36.7 |
30.6 |
36.5 |
52.6 |
NA |
NA |
|
1997 |
10.7 |
21.6 |
32.3 |
33.7 |
29.4 |
49.4 |
NA |
NA |
|
1998 |
30.3 |
38.3 |
34.2 |
39.6 |
48.5 |
53.7 |
NA |
NA |
|
1999 |
— 32.9* — |
32.7 |
41.7 |
53.2 |
57.9 |
NA |
NA | |
|
2000 |
— 24.1* — |
46.4 |
45.9 |
59.5 |
NA |
76.3 |
77.6 | |
|
2001 |
— 39.7* — |
55.4 |
58.8 |
56.5 |
NA |
70.7 |
84.2 | |
|
Based on discretion |
2-10 |
11-25 |
26-50 |
51-100 |
101-250 |
251 or more |
251-500 |
501 or more |
|
1996 |
72.5 |
72.3 |
43.3 |
59.7 |
61.5 |
42.3 |
NA |
NA |
|
1997 |
75.0 |
64.7 |
63.1 |
55.8 |
54.6 |
55.6 |
NA |
NA |
|
1998 |
66.7 |
55.0 |
53.0 |
53.2 |
48.5 |
45.8 |
NA |
NA |
|
1999 |
— 68.4* — |
57.3 |
60.2 |
56.7 |
47.7 |
NA |
NA | |
|
2000 |
— 65.5* — |
46.4 |
70.3 |
54.3 |
NA |
43.4 |
55.3 | |
|
2001 |
— 69.2* — |
58.7 |
80.4 |
61.1 |
NA |
78.0 |
73.4 | |
*Figures are for the 2-25 size category.
Note: Firms could report using
both bases to determine eligibility.
Source: NALP's Associate Salary
Surveys 1996-97 to 2001.
Table 2. Median Starting Salaries for First-Year Associates by Firm Size
|
Firm Size — Number of Attorneys | ||||||
|
2-10 |
11-25 |
26-50 |
51-100 |
101-250 |
251 or more | |
|
1996* |
$35,000 |
$41,500 |
$52,000 |
$58,500 |
$60,000 |
$70,000 |
|
1997* |
40,000 |
52,000 |
50,000 |
60,000 |
65,000 |
71,502 |
|
1998* |
39,500 |
52,000 |
53,000 |
61,000 |
60,000 |
75,000 |
|
1999 |
51,000** |
57,500 |
67,000 |
70,000 |
85,000 | |
|
2000 |
60,000** |
63,000 |
70,000 |
75,000 |
110,500 | |
|
2001 |
60,000** |
70,500 |
75,900 |
90,000 |
110,174 | |
|
% Change |
NC |
35.6% |
29.7% |
50.0% |
57.4% | |
*Figures for 1996 are as of July 1; figures for 1997 are as of August 1;
figures for 1998 are as of January 1; figures for all other years are as of
April 1.
**Figures are for the 2-25 firm size range.
Note: Medians for
each size range are calculated based on firms in that size range responding to
the survey for the year specified. Some medians appear to decline; this is a
result of a different pool of respondents in each year rather than a decrease in
salaries on the part of any one firm.
Table 3. Median Starting Salaries for First-Year Associates in Firms of 251 or More — Chicago, Los Angeles, New York and Washington, DC
|
Chicago |
Los Angeles |
New York |
Washington, DC | |
|
1996* |
NA |
$75,000 |
$85,000 |
$72,500 |
|
1997* |
73,000 |
80,002 |
87,000 |
74,000 |
|
1998* |
80,000 |
82,500 |
87,500 |
80,000 |
|
1999 |
90,000 |
92,004 |
96,000 |
91,000 |
|
2000 |
117,500 |
125,000 |
125,000 |
114,050 |
|
2001 |
125,000 |
125,000 |
125,000 |
125,000 |
|
% Change |
NC |
66.7% |
47.1% |
72.4% |
*Figures for 1996 are as of July 1; figures for 1997 are as of August 1;
figures for 1998 are as of January 1; figures for all other years are as of
April 1.
Note: Although the figures shows are technically medians (the
middle value in a series of salaries ranked from law to high), for these
specific cities and this firm size the figures shown are more usefully thought
of as simply the prevailing salary in that city at that time. For example, half
the firms in New York were not paying more than $125,000 in 2001, rather most
firms were paying $125,000.
Source: NALP's Associate Salary
Surveys, 1996-97 to 2001.
