September 19, 2018

Compensation Survey: Which Firm Pays the Most?

We've only been talking about this endlessly since we first put it together but until we close the Going Concern Compensation Survey (hey look there's a link to it, you should go take it), we're going to keep talking about it.

In order to keep your interest, we're going to tease you with a fancy little chart based on survey results thus far. Before we do that, though, we need to qualify a few things about this data.

First, it's self-reported. So it's only as accurate as the survey respondent is honest. Considering the fact that you all are supposed to be some of the most ethical, honest individuals in the world, we shouldn't have to worry about that, right?

Second, context against the rest of the data would be helpful here but we don't want to spoil the surprise just yet — we've gotten several hundred responses and expect to get many more in coming weeks — so this is all you get for now. Keep in mind we have survey responses from just about every state in the union, from across all service lines and from all manner of grunts entry-level to advanced. What that means is that these average numbers include a large variety of salary levels.

Third, for obvious reasons, the population size for smaller firms is, well, smaller than the larger firms. We kept them in anyway because we want to strongly encourage participation from everyone, not just the same four firms we constantly discuss.

NOW. The chart you've been waiting for.

Anyone surprised by this?

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Problem of the Day: Your Staff Makes the Same Money As You (Maybe More)

money.jpgApparently it’s happening, people. With several firms freezing pay for this fiscal year, some already hinting at an additional freeze for fiscal year 2010, and with less fewer offers being made on campus, it’s not outside the realm of possibility that the new associate nearly has the same salary as you.
It goes without saying that this is a contentious issue amongst the staff and it can be made worse if it is known to exist between members of the same team.
If you’ve been busting your ass for the last two to three years and seen very little appreciation in the form of merit increases and suddenly the new associate walks in making virtually the same as you, your motivation may evaporate on all fronts.
From a staff perspective, no new associate, no matter how virtuous will ever ask, “Is that what a senior associate makes? I wouldn’t be comfortable making that much without any experience.” Nice thought but not gonna happen. Firms will claim that they have to keep salaries competitive in order to win the best talent and may even encourage it in order to foster the “competitive environment”.
So discuss how prevalent this is on your team, in your office, or at your firm. Is there any good solution here? We’re talking about money, so there has to be some opinions.

Rumor Mill: E&Y CEO Jim Turley Is Appropriately Compensated

Thumbnail image for jim turley2.jpgMaybe! Depends on who you ask. We’re looking for opinions since we received a tip on what Jim Turley is pulling down:

Saw some info yesterday in a partner’s office. JDawg is pulling down $6 million…every year in October timeframe the partners at EY get a partner report on the “partner news network”. In this report EY shows partner information – the 5 highest paid US partners that are not in client service. So this includes generally JDawg, the AABS managing partner, tax managing partner, the Americas Vice Chair and a few other vice chairs. They started giving out this information about 4-5 years ago.

Our tip also stated that the non-J Dawg execs were pulling down in the nabe of $2.5 million.
Considering that J Dawg’s CEO duties include appearances on CNBC, being an IFRS cheerleader and eating f*(king chicken with Rahm, among other glad-handing and back-slapping duties, $6 mil makes for a nice round number.
Is $6 million fair for J Dawg? Discuss in the comments and pass along any further details you’ve got JT or other CEO salaries.