T14 grad - big law alum/OCI interviewer - lit 4th year - Miami Market Forum

[PeanutsNJam]

I have never understood why associates at very profitable firms in Miami, Atlanta, and similarly expensive COL metros are bonused at a substantially less amount than NYC. To make it even more confusing, associates in some smaller markets like Charlotte are bonused at a NYC rate. This has never made sense to me. Unless there is a solid rationale that has escaped me, I guess it is what it is.

Not much to add. There is no reason to pay NYC scale in Texas and Florida. Due to lack of income tax and state/city taxes alone, there's no question assoicates take home more in those outposts than in NYC. Those firms who do it attract the solid talent, that's for sure. Typically T14 fed clerks who often times come in as laterals from other biglaw. Some high performing Harvard kids. They are still big law though, so experience can be lacking for litigators especially.

I also think Florida is not as profitable a legal market as other no state tax markets like Texas. Greenberg didn’t match the 190k raise. Florida can pull top level law students while offering below NY market because it’s Florida, it’s like Cali weather but Texas CoL and taxes.

Wouldn’t be surprised at all if billing rates for Florida/ATL biglaw firms are notably lower than NY and other market firms.

[Anonymous User]

I have never understood why associates at very profitable firms in Miami, Atlanta, and similarly expensive COL metros are bonused at a substantially less amount than NYC. To make it even more confusing, associates in some smaller markets like Charlotte are bonused at a NYC rate. This has never made sense to me. Unless there is a solid rationale that has escaped me, I guess it is what it is.

Not much to add. There is no reason to pay NYC scale in Texas and Florida. Due to lack of income tax and state/city taxes alone, there's no question assoicates take home more in those outposts than in NYC. Those firms who do it attract the solid talent, that's for sure. Typically T14 fed clerks who often times come in as laterals from other biglaw. Some high performing Harvard kids. They are still big law though, so experience can be lacking for litigators especially.

I also think Florida is not as profitable a legal market as other no state tax markets like Texas. Greenberg didn’t match the 190k raise. Florida can pull top level law students while offering below NY market because it’s Florida, it’s like Cali weather but Texas CoL and taxes.

Wouldn’t be surprised at all if billing rates for Florida/ATL biglaw firms are notably lower than NY and other market firms.

Generally correct. There are pockets of the top Florida firms that bill out at NY rates though. That's what makes things frustrating when you have market-paying offers elsewhere.