http://corcoranlawbizblog.altmanweil.com/2009/04/06/a-note-on-reducing-law-firm-associate-compensation/ An Altman Weil blog by Timothy B. Corcoran Thu, 11 Mar 2010 16:21:29 +0000 http://wordpress.com/ hourly 1 http://corcoranlawbizblog.altmanweil.com/2009/04/06/a-note-on-reducing-law-firm-associate-compensation/#comment-13 Laura Suttell Tue, 14 Apr 2009 21:06:00 +0000 http://corcoranlawbizblog.altmanweil.com/?p=43#comment-13 How come I didn't know you had a blog? Found a reference to you while reading Law21. Good stuff here, Tim. I'd expect no less from a Bona grad. How come I didn’t know you had a blog? Found a reference to you while reading Law21. Good stuff here, Tim. I’d expect no less from a Bona grad.

]]> http://corcoranlawbizblog.altmanweil.com/2009/04/06/a-note-on-reducing-law-firm-associate-compensation/#comment-11 Blawg Review #207 Mon, 13 Apr 2009 12:33:53 +0000 http://corcoranlawbizblog.altmanweil.com/?p=43#comment-11 [...] Tim Corcoran of Corcoran’s Business of Law Blog thinks that firms focusing on associate salary cuts are missing the point: “it’s time to [...] [...] Tim Corcoran of Corcoran’s Business of Law Blog thinks that firms focusing on associate salary cuts are missing the point: “it’s time to [...]

]]> http://corcoranlawbizblog.altmanweil.com/2009/04/06/a-note-on-reducing-law-firm-associate-compensation/#comment-3 Timothy B. Corcoran Wed, 08 Apr 2009 15:34:05 +0000 http://corcoranlawbizblog.altmanweil.com/?p=43#comment-3 Quick Update: Law.com reports today that many law firm leaders are considering lower associate salaries, but none wants to be first. I recently spoke with a bright and capable law firm leader who echoed the thought. Why the reluctance? Maybe they read the above post and determined that salary cuts are simply not enough? Of course not. (Also, my point is that compensation should indeed be lowered, but don't stop there.) Law.com goes on to suggest that law firm leaders are contemplating wholesale changes to the lockstep compensation model. We're making this more complicated than it needs to be. From a strictly micro-economic perspective, when demand for a specific labor pool declines, then labor rates will decline as well. We don't have to reinvent compensation systems to merely acknowledge that, for the moment anyway, the average new law firm associate is not in high demand, so law firms can and should pay less for those they do hire. Competition for talent will lead to increases in associate salaries when demand increases, and it will. Quick Update: Law.com reports today that many law firm leaders are considering lower associate salaries, but none wants to be first. I recently spoke with a bright and capable law firm leader who echoed the thought. Why the reluctance? Maybe they read the above post and determined that salary cuts are simply not enough? Of course not. (Also, my point is that compensation should indeed be lowered, but don’t stop there.) Law.com goes on to suggest that law firm leaders are contemplating wholesale changes to the lockstep compensation model. We’re making this more complicated than it needs to be. From a strictly micro-economic perspective, when demand for a specific labor pool declines, then labor rates will decline as well. We don’t have to reinvent compensation systems to merely acknowledge that, for the moment anyway, the average new law firm associate is not in high demand, so law firms can and should pay less for those they do hire. Competition for talent will lead to increases in associate salaries when demand increases, and it will.

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