By Jim Knott, Founder

The Cravath scale is the compensation level set by the largest New York firms and followed by many other large firms. A firm of 5 to 200 attorneys usually does not match it and does not need to. It does need to know what it is offering instead, and say so plainly.

Know what you are competing on

Lateral candidates compare firms on more than base salary. When a candidate leaves a larger firm, the reasons are often about hours, access to clients, how work is assigned, or the route to partnership. A smaller firm can compete on all four, but only if it can describe them concretely.

Make the path to partnership specific

A candidate at a larger firm may be many years from a partnership decision. If your firm has a shorter and clearer route, put it in writing:

  • What are the criteria for income partner and for equity partner?
  • How many people have made partner in the last few years, and how long did it take?
  • Is there a business development expectation, and how is it measured?
  • What happens if the candidate does not meet it in the expected time?

An answer such as "we will discuss partnership after you join" loses to a firm that can say how the decision works.

Be clear on compensation structure

If base salary is lower, the structure of the rest of the offer matters more. Candidates want to know how bonuses are decided, who decides, what credit is given for origination and for work on matters brought by others, and whether the formula is written down. A firm that can show how the last bonus round worked is more convincing than one that describes the process in general terms.

Move faster

A smaller firm often has fewer decision makers. That is an advantage only if the firm uses it. Candidates at this level usually have more than one conversation running. A firm that schedules interviews within days and gives a decision soon after the last one is easier to say yes to than a firm that leaves a gap of several weeks.

Offer real autonomy and client contact

Attorneys who move to a smaller firm often want to run matters earlier, speak to clients directly, and have a say in how a practice develops. If that is true at your firm, give examples: matters the last lateral hire ran, clients they met in their first quarter, decisions they made.

Do not match a number you cannot sustain

A firm that stretches to match a larger firm's base salary and then demands more hours to pay for it has solved the wrong problem. The candidate who accepts is likely to be the one who leaves. Compete where you are strong.

Where a recruiter helps

A recruiter who has spoken to the candidate knows what the candidate is actually weighing and can tell you before you make an offer. Bound does this for firms of 5 to 200 attorneys, on contingency at 25% of base salary. See how Bound runs a lateral partner search or a senior associate search.