Two paths diverged in a merged firm…
The post Firm Announces New Compensation Model In Preparation For Merger appeared first on Above the Law.
Troutman Pepper pushed back the merger with Locke Lord from earlier this year, but as the leaves begin to fall in earnest (and potential billion-dollar conflicts get resolved), it’s time to get on with the tie-up. And part of that move — beyond adding Locke and Lord to poor Pepper and Hamilton as names that will inevitably achieve footnote status — involves figuring out how the new firm intends to compensate its merged associates.
Tipsters inform us that late last week, Troutman outlined the new compensation formula for the firm moving forward.
Currently, Troutman Pepper matches the market scale for first and second years, with salaries falling increasingly behind the market as attorneys become more senior.
The new Troutman Pepper Locke, or “Troutman” to everyone else, will most likely enter the Am Law 50 based on past financial results, boasting ~$1.570 billion in revenue with about 1,600 attorneys in 35 offices. The combined entity will still pay market for the first two years, but afterward, we hear the firm will offer a two-tier scale with associates qualifying for either the “high” or “low” scale. Despite this new announcement, sources say they remain fuzzy on what factors will determine an associate’s high- or low-tier fate and we have not seen a definitive scale.
So, understandably, midlevel associates do not seem thrilled. One associate described the announcement as “We’re projected to be Am Law top 30 post merger, but still are paying like an Am Law 200 firm.”
While the furious lateral movement of a couple years ago has died down, firms are seeing legitimately higher demand across multiple practice areas. Unlike the last few cycles, hiring is up at the same time as both productivity and demand. That’s a recipe for associates to test the lateral waters. Which might be Troutman’s goal, as mergers produce redundancies.
Anyway, to all the soon-to-be-merged associates… may your fortunes find you in the higher tier.
Joe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter or Bluesky if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.
