Howrey Eliminates Lockstep; Associates to Get Merit Raises Only
Joining a small but growing number of well-known law firms that are abandoning a traditional attorney compensation system, Howrey says it is eliminating lockstep pay for its associates.
Starting in January 2009, first-year associates—who are now hired at an annual salary of $160,000 at the 630-attorney Washington, D.C.-based law firm—have no guarantee of a pay increase with each passing year, reports the American Lawyer. Instead, pay raises will depend on how stellar their job performance is perceived to be by the firm’s partners.
“A superstar … may jump from what a first-year makes to what a third-year makes,” managing partner Robert Ruyak told the magazine during an April interview. For a top-performing associate that could mean a $25,000 annual pay raise after only a year at the firm. But “nonperformers,” Ruyak says, could get no raise at all and see their salaries drop below market rates for their law school classmates.
The firm originally planned to eliminate lockstep associate pay in January of this year, but delayed implementation of the new pay arrangement after associates expressed concerns, American Lawyer reports in an article tied to its annual midlevel associates survey.
“This is not intended to stop the rise in associate salaries,” Ruyak tells the magazine. “What I am concerned about is that if we are going to pay those salaries, then we better have people that are up to the task and well-trained, so that I can say [to the client], ‘This is why we are paying $200,000 a year for this associate.’ “
Related coverage:
The Recorder (2007): “Howrey to Ditch Lockstep Compensation for Merit-Based Model”
ABAJournal.com: “A Law Firm Ditches the Lockstep System and Retains More Women”
ABAJournal.com: “Losing Lockstep: Luce Forward Bases Associate Pay on Practice Area, Hours”
