(June 19) – Houston-based corporate law firm Vinson & Elkins announced late Monday afternoon that it has raised the amount it is paying its first-year associates to $195,000.
V&E, which is one of the largest and most profitable law firms in Texas, informed its associates it is matching the compensation increases that national law firms operating in Dallas and Houston implemented last week.
Legal industry analysts predict that other Texas law firms, including Houston-based Baker Botts, are likely to do the same later this week.
In a memo to its associates, which are younger lawyers yet to become partners, V&E Chairman Mark Kelly and Managing Partner Scott Wulfe said that the firm is increasing the base salary of its newbie lawyers from $180,000 to $190,000. In addition, the firm is providing first year associates $5,000 bonuses.
The memo, obtained by The Texas Lawbook, shows that paychecks for associates in their eighth year – the year before the lawyers are up for partnership – will jump to $340,000. Those associates also will receive incentive bonuses starting at $25,000.
The pressure on Texas law firms to boost compensation to younger lawyers intensified late last week when several national law firms with large presences in Dallas and Houston – Jones Day, Kirkland & Ellis, Sidley Austin, Simpson Thatcher, Winston & Strawn and Weil, Gotshal & Manges – announced that they were increasing the amount they paid associates.
The Texas Lawbook has complete details.
