Big Law Salary Increase

[goonersfc]

I wonder as well, how relevant was the timing of it all is. Given that the firms are interacting with students and potential future associates at this time, more than anyother time of the year, they were getting a sense that salary is the most important factor for students, and not prestige or whatever.

[BlockedQuebecois]

It seems pretty clear to me that this was a pre-approved move, which still makes Osler the market mover.

The alternative is Osler and Torys decided, independently of each other, to match Cassels and then just so happened to announce it within hours of each other. 

The firms aren’t dumb, I don’t think anyone has suggested they didn’t discuss raising salaries when Cassels did. They just all decided they didn’t care if Cassels beat them (and clearly decided they did care if Osler beat them). 

1 minute ago, goonersfc said:

I wonder as well, how relevant was the timing of it all is. Given that the firms are interacting with students and potential future associates at this time, more than anyother time of the year, they were getting a sense that salary is the most important factor for students, and not prestige or whatever.

You have an inflated sense of law student bravery if you think students were asking about compensation at the OCI stage of the 2L recruit.

[Ghalm]

2 minutes ago, Rashabon said:

Well yeah, in the broadest sense, Cassels had an influence because nobody would have moved had they not. But the pressures were internal - as I said before, nobody was worried about losing talent to Cassels. It was the internal messaging that was a problem. And none of the Sister firms would have moved unless one did.

Cassels was the fart in the elevator but nobody was willing to leave until one of the big boys/girls did.

Lol. Nicely put.

[Ghalm]

12 minutes ago, goonersfc said:

I wonder as well, how relevant was the timing of it all is. Given that the firms are interacting with students and potential future associates at this time, more than anyother time of the year, they were getting a sense that salary is the most important factor for students, and not prestige or whatever.

Yeah maybe - firms obviously put a lot of emphasis on their student recruitment, and their recruits are their future associates. Students think about compensation among firms. And sometimes, based on my own experience and anecdotes, students talk about compensation with lawyers they interview with at the in-firm, day 2/3, stage.

 

Also, friend just told me Stikeman matched, confirmed.

Edited October 21, 2021 by Ghalm

[Pantalaimon]

9 minutes ago, BlockedQuebecois said:

You have an inflated sense of law student bravery if you think students were asking about compensation at the OCI stage of the 2L recruit.

To be completely fair, and maybe I just paid more attention because of all the discussion about Cassels over the past few months, but I swear I've seen more questions about Cassels in the ITC thread than in the past.

[newnamez]

4 hours ago, BlockedQuebecois said:

It seems pretty clear to me that this was a pre-approved move, which still makes Osler the market mover.

The alternative is Osler and Torys decided, independently of each other, to match Cassels and then just so happened to announce it within hours of each other. 

The firms aren’t dumb, I don’t think anyone has suggested they didn’t discuss raising salaries when Cassels did. They just all decided they didn’t care if Cassels beat them (and clearly decided they did care if Osler beat them). 

To be fair I heard the email that Stikeman sent out said something about “comparable first-tier firms” raising their salaries. So it’s pretty clear a firm like SE didn’t care about Cassels. 

[Chrysander]

I think the real question is why none of the non-sister firms, who are apparently Cassels' real competitors, seem to have announced raises.

[C_Terror]

25 minutes ago, Chrysander said:

I think the real question is why none of the non-sister firms, who are apparently Cassels' real competitors, seem to have announced raises.

Didn't someone post that BLG and Norton Rose matched already?

[NorwegianWood]

8 hours ago, C_Terror said:

Didn't someone post that BLG and Norton Rose matched already?

BLG definitely confirmed 

[PePeHalpert]

8 hours ago, C_Terror said:

Didn't someone post that BLG and Norton Rose matched already?

Norton Rose has also been definitely confirmed

[Ish]

I’m sure it’s only a matter of time, but at least one of the firms that has been “confirmed” in this thread, has not actually been confirmed.

[Guest]

3 hours ago, Ish said:

I’m sure it’s only a matter of time, but at least one of the firms that has been “confirmed” in this thread, has not actually been confirmed.

You might mean McCarthy. I just heard from a friend there that they announced today as well.

[rocketship]

Has every 7 Sister firm announced the raise now? 

[lawyer1234567]

4 minutes ago, rocketship said:

Has every 7 Sister firm announced the raise now? 

All but Goodmans?

[Hitman9172]

13 hours ago, C_Terror said:

Didn't someone post that BLG and Norton Rose matched already?

I believe Fasken Toronto has also confirmed.

[Ghalm]

Apparently Lenczner Slaght announced 30k raises across the board for associates? It’s a lit boutique so unlikely the big shops find them comparable. 

[theSquibandtheEye]

Davies has announced a raise effective January 1. $25k for each year of call.

[C_Terror]

Just now, theSquibandtheEye said:

Davies has announced a raise effective January 1. $25k for each year of call.

Wow, so first year is now $160K? 

[Ghalm]

53 minutes ago, theSquibandtheEye said:

Davies has announced a raise effective January 1. $25k for each year of call.

Wow. Davies doesn’t play 😂

[Pantalaimon]

It's really just them maintaining the same 30k gap, no?

[frankconners]

5 minutes ago, Pantalaimon said:

It's really just them maintaining the same 30k gap, no?

But they don't need to. They could easily let the gap narrow a bit, but they have clearly chosen not to.

[BlockedQuebecois]

A large part of Davies' identity is based off paying above the street, the same way a large part of Wachtell's identity is based on paying above the rest of the white shoe NY firms. 

Could they let the gap narrow without consequences? Maybe.

But is it worth the risk? No—what they're doing is incredibly profitable for their partners (and their associates), and they'd like to keep it that way. Don't fuck with happy. 

[Ghalm]

22 minutes ago, BlockedQuebecois said:

A large part of Davies' identity is based off paying above the street, the same way a large part of Wachtell's identity is based on paying above the rest of the white shoe NY firms. 

Could they let the gap narrow without consequences? Maybe.

But is it worth the risk? No—what they're doing is incredibly profitable for their partners (and their associates), and they'd like to keep it that way. Don't fuck with happy. 

Whats the Davies secret sauce again? Is it keep the # of lawyers less than other firms, staff super lean, have the same volume of work?

Edited October 22, 2021 by Ghalm

[Pendragon]

6 minutes ago, Ghalm said:

Whats the Davies secret sauce again? Is it keep the # of lawyers less than other firms, staff super lean, have the same volume of work?

Davies mostly takes students with A averages or close to it, and they are less of a full-service firm than the other larger firms. A Partner at another seven sister once told me it was the M&A boutique of Bay Street. They also rarely hire externally and keep the firm size small and lean. They pay a lot of money but you are also working a lot of hours and many Associates leave the firm within their first few years. 

[QueensGrad]

16 minutes ago, Ghalm said:

Whats the Davies secret sauce again? Is it keep the # of lawyers less than other firms, staff super lean, have the same volume of work?

Go look at the m&a legal advisor deal tables. Davies has the highest Canadian numbers despite being 1/3 the size of a firm like Osler or Blakes. They are the Wachtell of Canada.