Last
week,
Steptoe
chair
Gwen
Renigar
announced
a
new
associate
compensation
system
and
it’s
a
major
victory
for
work/life
balance.
As
Steptoe
partner
Kate
Cappaert
said,
“The
program
is
focused
on
recognizing
that
each
associate’s
career
path
may
be
different.
Not
everyone
fits
in
the
same
box,
and
we’re
really
trying
to
meet
associates
and
let
them
take
ownership
and
control
over
their
career
path
and
develop
a
program
that
allows
them
to
do
that.”
So,
what’s
the
new
system?
In
broad
terms,
the
firm
will
offer
three
tracks
that
have
different
billable
hour
expectations
that
coincide
with
different
salary
bases.
As
reported
by
Law.com,
it
breaks
down
as
follows:
The
first
option
allows
associates
to
continue
on
their
current
compensation
scale,
with
a
billable
hour
reduction
to
1,800
hours.
The
firm
declined
to
specify
the
details
of
its
current
compensation
scale,
but,
according
to
2024
NLJ
500
data,
Steptoe’s
associate
compensation
scale
reportedly
starts
at
$215,000.The
second
option
offers
a
billable-hour
budget
of
2,000
hours,
with
a
compensation
scale
starting
at
a
$225,000
base
salary
for
first-year
associates
and
going
up
to
$502,500
for
eighth-year
associates.The
third
option
comprises
a
billable-hour
budget
of
2,200
hours,
with
compensation
starting
at
a
$236,250
base
salary
for
first
years
and
running
up
to
$581,750
for
eighth-year
associates.
All
three
billable
levels
will
have
the
same
opportunities
for
promotions.
Associates
will
be
awarded
bonuses
for
meeting
their
billable
targets,
extra
bonuses
for
exceeding
them,
and
an
option
for
additional
discretionary
bonuses.
There
will
also
be
an
option
to
have
a
billable
budget
below
1,800
hours
at
a
prorated
salary.
More
of
the
logistics
are
detailed
here:
Each
associate
will
be
given
an
associate
billable
hour
budget
and
compensation
for
2025
based
on
“a
review
of
their
historical
utilization
and
performance,”
according
to
Renigar’s
note.
However,
associates
will
be
able
to
select
a
lower
budget
than
assigned
to
them
if
they
so
chose.The
assigned
budget
and
compensation
will
apply
for
2025,
though
associates
will
have
the
choice
to
change
budgets
year-to-year.
The
level
of
flexibility
this
program
provides
to
associates
is
potentially
revolutionary.
And
the
inherent
uncertainties
of
billable
targets
like
if
you’re
on
the
1800-hour
program
but
get
put
on
a
drawn-out
trial
or
if
the
M&A
market
takes
another
dip,
can
be
accounted
for
in
the
new
bonus
system
at
the
firm.
Kudos
to
Steptoe
for
realizing
good
lawyers
don’t
always
want
to
spent
every
waking
moment
billing.
Kathryn
Rubino
is
a
Senior
Editor
at
Above
the
Law,
host
of
The
Jabot
podcast,
and
co-host
of
Thinking
Like
A
Lawyer.
AtL
tipsters
are
the
best,
so
please
connect
with
her.
Feel
free
to
email
her
with
any
tips,
questions,
or
comments
and
follow
her
on
Twitter
@Kathryn1 or
Mastodon
@[email protected].