AmLaw: Rachel Nonaka on the Impact of Big Law Associate Pay Bumps

The American Lawyer’s Dylan Jackson checks in with D.C. Managing Director Rachel Nonaka about the impact of the eye-popping Big Law associate pay raises on more experienced attorneys:

Between bonuses as high as $64,000 and substantial raises across all levels, not to mention potential five-figure signing bonuses, Big Law associates are making out this year—rightfully so, given their crucial role as profit centers helping firms address the rising tide of work this year.

But experts and observers say that amid the flurry of raises and bonuses, firms need to pay close attention to those in the middle of their hierarchies—nonequity partners and counsel—who risk being lost in the shuffle. It is very possible that the windfall coming to associates will result in some senior associates making even more than their more experienced counsel and nonequity partner colleagues.

After the bonuses and raises, senior associates at law firms that matched the scale set by Milbank and Davis Polk & Wardwell will likely take home more than $400,000—not including end-of-year bonuses. Rachel Nonaka, a recruiter at Macrae, says she recently placed an of counsel at a Big Law firm downmarket as a nonequity partner. This candidate now makes more money than they did as counsel at their previous firm.

“[Counsel] are kind of in no-man’s land. We saw in the fall when special bonuses were being paid counsel were not included,” Nonaka said, pointing to Sullivan & Cromwell as an example.

“This can really lead to a lot of resentment. The senior associates can, with these special bonuses, make more than of counsel who are working to make partner and are incredibly important because of their expertise,” she added.

Read the article in full here: As Associate Pay Rises, Ignoring Counsel and Nonequity Partners Can Lead to Resentment