There’s often plenty in Biglaw to complain about. But one beacon of positivity is the industry compensation standard, which is lockstep based on experience. The salary scale is widely available, and, provided you stay in good standing at the firm, you can expect yearly raises along with your cohort. But one Biglaw firm has decided to shelve that system in favor of a “black box.”
Black box compensation is a lot more secretive and opaque by design. Associates are informed of individualized compensation decisions on a year-by-year basis, and while there may be publicly discussed “factors” that play into an associate’s salary, it is ultimately entirely up to the firm’s discretion.
Venable recently informed associates that they are moving away from the transparency of lockstep compensation. The firm most recently reported $812,100,000 in gross revenue, making them 64th on the 2024 Am Law 100 ranking, but even with that kind of money, insiders Above the Law spoke with say there’s a pattern of “nickel and diming” associates. Despite the raises across Biglaw in recent years, Venable hasn’t raised associate salaries since 2021, putting it behind their peer firms.
The new compensation model is range-based. The firm has not shared with associates precisely what the bottom of the range for each level is (firm leadership estimated the bottom at a 15% reduction off the top number but said the bottom could be lower), but even the top of the range puts the firm below the Biglaw market standard.
Tipsters at the firm report the following top salaries available:
Top of the Salary Ranges:
- Level 1: $215,000
- Level 2: $225,000
- Level 3: $245,000
- Level 4: $275,000
- Level 5: $300,000
- Level 6: $320,000
- Level 7: $340,000
- Level 8: $355,000
But what, exactly, goes into determining how much money an associate makes within the range? (Also, calling it a “range” without clearly disclosing the floor feels more than a little disingenuous, since that makes it more like a “cap” on salaries, not a range, but I digress.) Well, the firm hasn’t been particularly forthcoming. According to a tipster:
Under the new model, where an associate falls within the range will be determined at the firm’s discretion. According to Firm Chairman Stu Ingis, compensation will be based “primarily on hours.” Additional details were communicated during in-person-only office meetings, with no formal memo or written communication provided. Associates unable to attend in person were advised to obtain highlights from colleagues, reinforcing the perception that the firm aimed to keep the changes from being widely publicized.
Thumbing your nose at transparency is never a good look.
Above the Law reached out to Venable for comment, but the firm did not immediately provide one.
Associates at the firm are also — rightly — worried this system could result in pay cuts for some folks. Insiders say that possibility was not ruled out by the firm. And with black box compensation, there’s no way to know how many associates are getting well and truly screwed by the new system. No wonder Above the Law is hearing stories of fearful, frustrated, and disappointed associates — not to mention those looking for new jobs. But that seems to be a feature, not a bug, of black box compensation.
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Mastodon @Kathryn1@mastodon.social.
The post Biglaw Firm Slams The Door On Salary Transparency, Goes Black Box appeared first on Above the Law.
There’s often plenty in Biglaw to complain about. But one beacon of positivity is the industry compensation standard, which is lockstep based on experience. The salary scale is widely available, and, provided you stay in good standing at the firm, you can expect yearly raises along with your cohort. But one Biglaw firm has decided to shelve that system in favor of a “black box.”
Black box compensation is a lot more secretive and opaque by design. Associates are informed of individualized compensation decisions on a year-by-year basis, and while there may be publicly discussed “factors” that play into an associate’s salary, it is ultimately entirely up to the firm’s discretion.
Venable recently informed associates that they are moving away from the transparency of lockstep compensation. The firm most recently reported $812,100,000 in gross revenue, making them 64th on the 2024 Am Law 100 ranking, but even with that kind of money, insiders Above the Law spoke with say there’s a pattern of “nickel and diming” associates. Despite the raises across Biglaw in recent years, Venable hasn’t raised associate salaries since 2021, putting it behind their peer firms.
The new compensation model is range-based. The firm has not shared with associates precisely what the bottom of the range for each level is (firm leadership estimated the bottom at a 15% reduction off the top number but said the bottom could be lower), but even the top of the range puts the firm below the Biglaw market standard.
Tipsters at the firm report the following top salaries available:
Top of the Salary Ranges:
- Level 1: $215,000
- Level 2: $225,000
- Level 3: $245,000
- Level 4: $275,000
- Level 5: $300,000
- Level 6: $320,000
- Level 7: $340,000
- Level 8: $355,000
But what, exactly, goes into determining how much money an associate makes within the range? (Also, calling it a “range” without clearly disclosing the floor feels more than a little disingenuous, since that makes it more like a “cap” on salaries, not a range, but I digress.) Well, the firm hasn’t been particularly forthcoming. According to a tipster:
Under the new model, where an associate falls within the range will be determined at the firm’s discretion. According to Firm Chairman Stu Ingis, compensation will be based “primarily on hours.” Additional details were communicated during in-person-only office meetings, with no formal memo or written communication provided. Associates unable to attend in person were advised to obtain highlights from colleagues, reinforcing the perception that the firm aimed to keep the changes from being widely publicized.
Thumbing your nose at transparency is never a good look.
Above the Law reached out to Venable for comment, but the firm did not immediately provide one.
Associates at the firm are also — rightly — worried this system could result in pay cuts for some folks. Insiders say that possibility was not ruled out by the firm. And with black box compensation, there’s no way to know how many associates are getting well and truly screwed by the new system. No wonder Above the Law is hearing stories of fearful, frustrated, and disappointed associates — not to mention those looking for new jobs. But that seems to be a feature, not a bug, of black box compensation.
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Mastodon @[email protected].
