
As in the past, when large firms like 700-lawyer Simpson Thatcher announce a salary hike, others are quick to follow. Paul Weiss Rifkind Wharton & Garrison matched Simpson Thacher's increase to $160,000 Tuesday afternoon. Last February's increase to $145,000 was first announced by Sullivan & Cromwell, and other firms wasted little time jumping on the bandwagon. Firms generally succumb to the pressure to match salaries to remain competitive in nabbing talent from a small pool of top law students.
Simpson Thacher's decision also comes after a pay increase at a number of California firms, which upped their first-year salaries to $145,000 from $135,000. New York firms may also follow Simpson Thacher's lead in an effort to maintain the Big Apple's status as the top market for associate pay.