More news in the slow-growth trend toward merit-based pay in law firms appeared today in the form of Bingham’s new compensation model.
According to the WSJ Law Blog, the firm is unfreezing base salaries for associates who bill more than 1,900 hours, meaning their compensation will be commiserate with their class year had salaries never been frozen.
The associates with between 1,500 and 1,900 hours will keep the same, “frozen” salary level — i.e. one class level behind where they would have if they had hit 1,900.
The merit-based aspect of the plan comes at bonus time, as practice leaders will have discretion on bonus amount based on the quantity and quality of their work.
According to an earlier post by Above the Law, the plan is a way to keep both partners and clients happy. Internal Bingham research showed that partners and associates were in favour of a hybrid pay schedule and clients are in favour of less emphasis on billable hours.
Read the all the pay details at WSJ’s Law Blog.
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