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Lawyer Pay
New Reed Smith pay construction kinds associates into ‘the A squad and the B squad,’ weblog says
Reed Smith has confirmed that it’s altering the compensation construction for associates, however it’s not entering into specifics after a leaked memo stated the legislation agency was creating two tiers of affiliate pay primarily based on billable hours. (Picture from Shutterstock)
Up to date: Reed Smith has confirmed that it’s altering the compensation construction for associates, however it’s not entering into specifics after a leaked memo stated the legislation agency was creating two tiers of affiliate pay primarily based on billable hours.
Above the Law, which obtained the memo, referred to as the 2 wage ranges “the A squad and the B squad.” Reed Smith stands out as the first high agency to institute such measures, in keeping with the weblog.
Affiliate pay at Reed Smith will improve July 1.
Probably the most junior associates will obtain “straight Cravath matches,” which means that their pay is $225,000 per the Cravath, Swaine & Moore scale, Above the Regulation explains. Different associates will probably be divided into two wage ranges. Wage Stage A is for many who invoice 2,000 hours or extra, and Wage Stage B is for many who invoice lower than that.
These at Wage Stage A will obtain market charge pay, aside from essentially the most senior associates, who will obtain a considerably lower-than-market wage of $415,000. These in Wage Stage B will obtain “tens of 1000’s of {dollars} much less in compensation,” the weblog studies.
An affiliate positioned in Wage Stage B who manages to invoice 2,000 hours for the 12 months will obtain a bonus that can put their wage on the stage of Wage Stage A.
Law360 famous one other change. Slightly than paying associates in keeping with class 12 months, Reed Smith is compensating them primarily based on a rating system.
Reed Smith confirmed a change in pay construction in an e mail to Law360, however it didn’t get into specifics.
“We’re making modifications to U.S. affiliate compensation in an effort to draw and retain the strongest authorized expertise to assist our purchasers of their most refined issues and to offer a spot the place our legal professionals can thrive each professionally and personally,” the agency stated.
Reed Smith additionally famous that it additionally has a discretionary and nondiscretionary bonus program. It additionally has an “Affiliate Life” program, “which offers in depth advantages to our associates and contributes to Reed Smith being a spot the place junior legal professionals wish to develop their careers,” the agency instructed Law360.
Up to date March 26 at 10:30 a.m. to accurately report that these in Wage Stage B will obtain “tens of 1000’s of {dollars} much less in compensation.”
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