News and Trends

September, 2005

Increased Activity Putting Pressure on Law Firm Salaries

For approximately the last five years, starting salary for first-year lawyers at the largest big-city law firms has been stuck at or around $125,000. A report by the National Association of Law Placement calls starting salaries "remarkably stable" since 2000. With the pickup in business and profits, NALP expects to see a jump in starting salaries in the near future. The same is true for the salaries of more experienced law firm lawyers. According to law.com, Howrey; Arnold & Porter; and Skadden, Arps, Slate, Meagher & Flom have increased associate salaries this year. Raises were also given at the Boston firms Goodwin Procter and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo. Part of the salary pressure is due to firms hiring fewer associates in recent year and not allowing new hiring to keep pace with the increase in business. Higher salaries will likely be seen first at New York and California firms. Skadden has already upped its first-year salary.