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I’d be interested to hear others’ views here who have more insight into the ratio of salary to amount billed. But I don’t think billing 3x your base salary is very good. Quick back of the napkin calc, over the past 5 years I’ve billed somewhere between 5x to 8x my all-in salary every year (including a low year in 2020).
That’s the thing - I know I’m doing high quality work compared to others at my level. I don’t just think my pay isn’t commensurate with my profitability merely because of the amount of time billed. I am trusted with a relatively high level of responsibility and my work quality is appreciated by the partners I work with, who generally give a high level of deference to my legal analysis. The firm has recognized this by consistently increased my billing rate significantly (compared to others at my level), but it has not been similarly reflected in my compensation. Sure, there are always some areas where my practice can improve, but those issues are addressable and I never let them perpetuate.
Honestly, it’s not like I’m unhappy with the pay - BigLaw compensation is generally insane. But I’ve done the math on comparing my profitability, my billing rate, etc. against my compensation, and it just does not add up in the same way as it has for other associates at my level.
I’m only concerned that letting the firm take advantage of me like this so early on is going to be a slippery slope, and I’m just curious as to how I should go about advocating for myself in the most effective and professional way. So, if even just for shits and giggles, let’s just go ahead and assume that I am currently undervalued and that I am marketable to other comparable firms. Who would I bring this up to, and how would I want this conversation to go? Or should I just go ahead and bail?
I hit my target, received consistent compliments on my work quality throughout the year, and am very profitable to the firm (based on what was actually billed to clients, I brought in fees well in excess of 3x my base salary) as a junior associate… based on the bonus I received and my current salary compared to other associates, my compensation is certainly not commensurate with my profitability, so I feel like I’m getting taken advantage of. My firm has also been known to bump up class years based on performance, but I have no idea how to go about negotiating this, or even advocating for myself to management in general, honestly.
I otherwise enjoy the firm and don’t really want to leave, but I don’t know if I can justify staying if they are, in reality, taking advantage of me. So, I feel justified in bringing up these concerns to some level of management, but I don’t want to piss anyone off. Any advice?
Mentor
If you're junior, wait a year or two til you are a mid. Much more valuable then.
Firms will always bill you out more than they pay you. That's the model. Do you even know whether you are top of your class?
Subject Expert
Class year and comp?