K&E makes it clear the incremental benefit of billing an extra 100 hours isn’t worth it as compared to actually doing good work and getting a better class rating... if you’re toiling away for 3000 hours but doing crappy work for an extra $5k that’s your fault vs billing 2200 and owning it and getting 1.5x at a minimum.Anonymous User wrote:Other, less pessimistic K&E associate here.Anonymous User wrote:K&E associate here and would prefer not to be outed. Thank you in advance, mods.
We pay below market, and it's incredibly frustrating to me for there to be a common perception in the community that we pay above market. I think the issue is that most people come from a legal background and do not have an understanding on what "market" means. Market is the average the market is paying for certain services ("market"). Market is not the the base that the majority of firms use when making compensation decisions (the "base").
Almost all firms pay above the base for high billers. When I am billing 2,500 hours at K&E and get an extra $7,500 bonus, this is below market given that I have one friend at a V20 getting $7,500 for 2,400 hours and another friend getting $5,000 for 2,300 hours. K&E most definitely pays above base for high billers, but we pay below market.
Oh, and by the way, if we paid above market, we would have already at least matched Gunderson.
Okay, but market is a term that everyone understands around here to mean paying Cravath scale without unreasonable hours demands, so the semantics lesson isn’t super helpful.
You are correct obviously in your analysis that base salaries vary in generosity depending on hours worked, but then why complain about us? K&E is one of a few firms I know that has absolutely no hours requirement, pays above market even to those who bill below the hours that would be bonus cutoffs at other firms, actually has a vaguely meaningful bonus increase for mega-billers, etc.
You and I agree, I assume, that it is not worth it to bill 3000 hours to get an extra X amount of dollars. BUT if you’re put in that situation, it’s a hell of a lot better to be at a firm that has a history of paying a generous multiplier. You may know of other firms that do that, but other than Wachtell and some boutiques, I don’t know of a firm with a more generous floor and a higher ceiling than we do.
Fundamentally, I do not bill more hours than my class year at other V20s, and yet for the last several years I have earned more than them. How is that below market? (Other than the current Gunderson embarrassment).
Agree with the earlier K&E poster that this is really just a timing issue and the market will ultimately see this money, it just depends on whether it falls into this fiscal year for partners vs. next fiscal year in the form of year end bonuses. Will be a weird dynamic if some firms don’t match now and then try to get publicity at year end by beating whatever is “market” then and you’ll end up with firms having to explain they actually already matched by paying these out back in July, which is also not a good look.