back to vault.com

Vault Blog

Sign Up for Vault e-news

Vault's weekly Career Update for tips and tools to help you find and manage your ideal career.

Is Lockstep Compensation the Key to Happy Associates?

by Rachel Marx Boufford
Published: Tuesday, September 25, 2012

As part of its special section on the future of BigLaw, the New York Times examined the culture at firms that have held on to a pure lockstep compensation structure—for both partners and associates. According to the managing partners at CravathCleary and Debevoise, the lockstep system—in which attorneys are paid solely according to their seniority instead of according to merit-based criteria—fosters a culture of transparency, collegiality and teamwork.

This summer, Vault released its annual Quality of Life rankings, including a ranking of the firms with the best culture—as voted by firms’ own associates. We wondered—how many of these top 25 firms have lockstep compensation?

The answer, perhaps surprisingly, is that only five of the 25 firms ranked as having the best culture have pure lockstep compensation (some other firms have a lockstep/merit hybrid model): Williams & ConnollyDebevoisePatterson BelknapCleary Gottlieb and Davis Polk.

So what do associates at these firms have to say about how the compensation system affects their firm’s culture?

  • “The fixed ‘above-market’ salary system creates a great culture among associates. There is no incentive to ‘outbill’ anyone, no competition, no concerns or held breath. “ (Williams & Connolly)
  • “Debevoise is lockstep, which cuts a lot of the competitive behavior between associates that goes on at other firms.”
  • “It's really a nice place to work—good people, good work, good hours. No one is competing to be the last person in the office at night, and both associates and partners respect that you have other work and things outside of the office to do.” (Patterson Belknap)
  • “As a lockstep firm at all levels of compensation (associates and partners), Cleary associates are not rewarded or financially compensated for billing excessive hours. As intended, this translates into (i) a more collegial approach to taking on assignments, (ii) less individual pressure on yourself and (iii) greater efficiency.”
  • “Atmosphere is very collegial, even among partners; the feel is completely collaborative, not competitive.” (Davis Polk)

So if taking competition out of the equation fosters a collegial culture, how do the remaining top twenty firms for culture keep things positive? It looks like a commitment to transparency, compensation metrics that aren’t solely hours-based, an absence of strict hierarchy and a focus on team-building events all go a long way.

  • “Politically, there is a lot of transparency about how the firm is run and it's a super-egalitarian place to work. Professionally, everyone is very respectful of each other. Partners reach out and try to be mentors.” (Munger Tolles)
  • “Though bonuses are tied to hours, you can still get a ‘full’ bonus without meeting your hours requirement by exceeding expectations in some other regard.” (Ropes & Gray)
  • “Lawyers do tend to socialize, both individually and with their families. The firm focuses on fostering collegiality with both business and after-hours/weekend events, and with both internal and community based events.” (Baker Donelson)
  • “The firm's culture is relaxed and informal. The strict sense of hierarchy that permeates other firms is completely absent. One example: when a partner wishes to speak to an associate, they are just as likely to visit the associate's office as they are to call the associate to their office.” (Foley Hoag)
  • “The culture is incredibly tight-knit—from socializing outside of the office, to monthly in-office cocktail hours and free yoga classes. Working together is easy, as most associates are very friendly with one another.” (Patton Boggs)

So what does this mean for you? As you research and interview with law firms, you should certainly inform yourself about potential employers’ compensation systems. But don’t assume that a lockstep structure is a prerequisite to a collegial culture: dig deeper into the initiatives firms offer to foster a positive work environment.

Connect with us on Twitter @VaultLaw!

http://blogs.vault.com/blog/salary-and-benefits/is-lockstep-compensation-the-key-to-happy-associates/

Vault welcomes your views. Please stay on topic and be respectful of other readers. Review our User Guidelines.

blog comments powered by Disqus
X

Comments Policy

Vault.com encourages you to express your opinions and engage in discussions with one another by leaving comments on our site. While we promote an open forum, please follow these guidelines to ensure an enjoyable and welcoming environment for all our readers. Vault.com does not review or moderate all comments but we reserve the right to remove or edit content once posted.

Respect one another. Debates are great, but attacks are not. Please refrain from posting offensive, obscene, threatening or abusive comments. If you personally attack other readers or writers, your comment(s) and responses to those comments may be removed from the discussion. Attacks create a hostile environment that discourages discussion. You are fully responsible for libelous or defamatory comments.

Hate-speech will not be tolerated. Comments containing racism, homophobia, sexism, or any other form of hate-speech have no place on our site.

Keep your language in check. Vulgar posts may offend other readers. Our filters are fairly tolerant, allowing for quite a bit of colorful/questionable language, but too many obscenities may prevent a comment from posting. In addition, in some cases, if a post is still too vulgar, a moderator may later remove or edit it.

Please note that comments may be edited by the moderator for any reason, including but not limited to language.

Stay on topic. Comments should be related to the topic discussed in the associated article or blog post. In order to keep the conversation relevant, off-topic comments may be edited or removed.

Don't impersonate someone else. You may not use a false e-mail address, impersonate any person or entity, or otherwise mislead as to the origin of your comments. If we believe you've impersonated someone else, we reserve the right to remove the comment.

Spam and commercial content will be removed. We do not welcome comments containing copy used for commercial purposes or for soliciting funds. If we see them, we reserve the right to remove them.

Readers may "report" concerns about other reader comments. Please use the "Report Abuse" link to flag inappropriate content. If a reader reports a concern, moderators will try to review that concern as soon as possible. This may take a few days although we hope to review comments more quickly. We do not remove every comment that has been reported and we cannot respond individually to every report.

Stop and think before you comment. We won't remove comments because a reader or writer regrets a post. Please remember that these comments are searchable and a comment history has a long life on the web.

Don't include personal information in your comments. We strongly discourage readers from posting personal information about themselves (ex. address, telephone number, workplace) and reserve the right to remove any comments we find with personal information about other people or that violates a third party's right to privacy.

Complaints about removed comments. We reserve the right to remove comments left to protest a removed comment. Please contact us if you have any complaints about deleted comments.

Repeated abuse of our guidelines may lead to commenting privileges being suspended. If you think you've been banned by mistake, let us know.

For further questions and comments regarding commenting on Vault.com, please contact us.

connect with us