Is the Big Firm Salary Model Broken?

Is the Big Firm Salary Model Broken?

Word that some big law firms may do away with lockstep pay increases and reduce their associates' base salaries beyond the cuts already instituted comes as little surprise to legal trend watchers. The Above the Law blog published a report late last month that Dorsey & Whitney is considering a revamp of its associate compensation system, including lowering associates' base pay and adding a bonus for those who meet certain performance standards such as billable hours. A Dorsey representative said the firm was "reviewing market data and considering adjustments to [its compensation] system which would emphasize associate contribution and core competencies. " (Dorsey declined further comment for this article.) Jodi Standke, CEO of the legal placement firm Talon Performance Group, was not surprised that Dorsey is rethinking its compensation system.  
 
Michele Lore,
From: The Minnesota Lawyer (Minneapolis, MN)
October 5, 2009