{"id":2932,"date":"2024-10-09T01:04:01","date_gmt":"2024-10-09T01:04:01","guid":{"rendered":"https:\/\/usatrustedlawyers.com\/blog\/surpassing-cravath-associate-pay-scale-boutique-seeks-to-stay-above-market\/"},"modified":"2024-10-09T01:04:01","modified_gmt":"2024-10-09T01:04:01","slug":"surpassing-cravath-associate-pay-scale-boutique-seeks-to-stay-above-market","status":"publish","type":"post","link":"https:\/\/usatrustedlawyers.com\/blog\/surpassing-cravath-associate-pay-scale-boutique-seeks-to-stay-above-market\/","title":{"rendered":"Surpassing Cravath Associate Pay Scale, Boutique Seeks to Stay Above Market"},"content":{"rendered":"\n
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A health care boutique in Austin has raised associate salaries significantly above the highest tier in the legal market, potentially setting the bar for raises for 2025.<\/p>\n<\/div>\n

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By raising associate pay above market,\u00a0Gjerset & Lorenz<\/a>\u00a0said it’s seeking to reward associates for hard work on significant projects this year and also help the firm’s recruiting.<\/p>\n<\/div>\n

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The boutique’s new salary scale, effective Oct. 1, pays a range starting with $265,000 for first-year associates, up to $475,000 for eighth-year associates. Overall, the pay range surpasses the top of the market by a range of $15,000 to $40,000, depending on the class of associate.<\/p>\n<\/div>\n

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Last year, much of Big Law\u00a0\u2014 and boutiques such as Gjerset & Lorenz\u00a0\u2014 met a salary scale<\/a> set by Cravath, Swaine & Moore, which paid associates salaries ranging from $225,000 for first-year lawyers up to $420,000 for seventh-year associates.<\/p>\n<\/div>\n

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So far this year, however, the 20-lawyer Gjerset & Lorenz may have set an early pace with its new salary scale. The salary memo was first reported by Above the Law.<\/p>\n<\/div>\n

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Firm founder Shauna Lorenz said in an interview on Tuesday that the firm normally decides on a new salary scale in December, but the partners wanted to reward associates for “really having to dig in and do extra” without waiting until the end of the year.<\/p>\n<\/div>\n

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Demand in health care has been strong this year, which Lorenz attributed to the firm’s long-standing reputation in the market since 1998 as well as financial pressures on health care clients who are turning to the firm for help. The firm represents hospitals and other healthcare providers.<\/p>\n<\/div>\n

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Also, Lorenz said, the firm made an early salary scale announcement to help it recruit associates from top law schools, either through the firm’s summer associate program or through lateral hiring.<\/p>\n<\/div>\n

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The firm purposely moved significantly higher than the Cravath market scale that many Big Law firms met last fall.<\/p>\n<\/div>\n

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According to the Oct. 1 memo from Lorenz, first-year associates in the class of 2024 are paid $265,000, and second-year associates in the class of 2023 are paid $275,000. Moving up the seniority list, it’s $300,000 for third-years, $335,000 for fourth-years, $380,000 for fifth-years, $420,000 for sixth-years, $450,000 for seventh-years and $475,000 for eighth-years.<\/p>\n<\/div>\n

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Lorenz wrote in the memo that the “novelty, complexity and quality” of the firm’s work exceeds that of Big Law, and the firm wants that to be reflected in the salary structure.<\/p>\n<\/div>\n

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“We genuinely appreciate each of your contributions to the success of the firm and are incredibly appreciative of your flexibility during our transition of several projects and work assignments this year,” she wrote.<\/p>\n<\/div>\n

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She added that the firm is committed to exceeding the Big Law scale and will monitor changes in the market that typically occur later in the year and adjust the firm’s scale if necessary. The firm took into account summer bonuses paid by Milbank<\/a> and a few other firms.<\/p>\n<\/div>\n

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Gjerset & Lorenz has 10 associates, seven partners and three counsel.<\/p>\n<\/p><\/div>\n

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