UK changes to the ‘lockstep’ model of associate remuneration may also be working in the US legal jobs‘ scene as some US firms consider the approach adopted in Reed Smith’s new ‘talent model’. Reed Smith has been shaking up associate remuneration, cutting pay by 20 per cent and replacing the longstanding lockstep with the introduction of bandings for junior, mid-level and senior associates.
The lawyer blog reports the London managing partner of a US firm saying “In terms of abilities, people progress at different speeds, so having some concept of junior, mid and senior bandings of associates makes sense,” said the managing partner. “I also think that this would be consistent with what’s happening at the UK firms. It’s just modernising the system.”
So far as money, money money is concerned, the differential between Skadden Arps and Cravaths is likely to be less than it has been when Skadden’s had a bonus twice that of Cravaths previously
If anything this year’s bonus season is the most significant ever. Skadden’s?closely?watched announcement comes at a time of massive upheaval among associate ranks.
“Reality is dawning,” says Jomati consultant Tony Williams. “The profits at most US firms are likely to be flat or down, probably by around 5-10 per cent, with a few exceptions. This year bonuses are only going to be given very, very sparingly.”