Midsize Firms in California Mulling Associate Pay Cuts
Some midsize firms in California have already cut associate salaries, while others are thinking it over.
The market rate for new associates at midsize firms is $160,000, and some firms claim they will continue to pay that amount, the Recorder reports. But some have already announced cuts. Howard Rice Nemerovski Canady Falk & Rabkin has cut salaries by 10 percent, while Allen Matkins dropped first-year salaries to $145,000.
Other firms say they are thinking about cuts, the story says. They include intellectual property firm Townsend Townsend and Crew, which is also considering a cut in its billable hour requirements, and Jeffer Mangels Butler & Marmaro, which may adjust salaries based on demand for particular practice areas.
Firms planning to keep first-year salaries at $160,000 include Munger, Tolles & Olson; Irell & Manella; Shartsis Friese; Farella Braun & Martel; and Keker & Van Nest. Many of the firms have low associate-to-partner ratios, making it easier to pay the high salaries, the story says.
