Thursday, May 11, 2017
The funds to pay the salaries for new lawyers in Big Law has to come from somewhere. JDJournal suggests these sources:
Instead, the money is going to come from the middle zone in which the majority of BigLaw attorneys operate. Firms might lay off associates or even engage in a mass layoff. They might reduce the number of non-equity partners or counsel-level positions, or reduce the compensation of non-equity partners or counsels. They might even reduce the profits of less-important partners or shrink the size of the partnership altogether, so fewer (more important) partners can keep the same level of profits as before.
What this means for associates is that they may enjoy short-term benefits from huge salary raises, but in the long-run, those very salary increases are likely to make their jobs less secure, the legal market less stable, and their chances at making partner less likely.
You can read more here.