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Thread: Lawyer Salary
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Old 22-06-2021, 02:23 PM
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Originally Posted by Unregistered View Post
This guy must be a salty non-lawyer. Only people who wanted to, but failed to, become a lawyer will ever use "apropos of nothing" in their writing (in an attempt to look clever).

It's very simple. Legal fees for a freshly called associate is $300+/h. On average you should be billing 2000+ hours a year, but let's count it as 2000. That's $600,000 a year. That's the value you are providing to your firm/customers (also, because the OP is evidently not an economist, value is determined by market forces that deem your work at a certain pricepoint --> stupidly saying that lawyers have not addressed their value proposition is an argument that can be transposed to any vocation - why doctors demand high salary? why bankers demand high salary? why xxx demand high salary? - because that's the value society is willing to ascribe to the work that they do).

Again, since the OP evidently does not know how the legal industry works, the breakeven point for hiring a fresh lawyer is estimated at 3x their pay. I.e. if you are paid 6k/mth, you should be billing 18k/mth. That's only $216,000. Meaning that the firm, excluding overheads and related costs, are taking around 400k while giving you 72k (and whatever bonus for that year - which is pegged to higher billings). All these extra fees go to the partner's pocket. Generally the partner's only achievement is being born at the right time (when law was not so competitive) and being older and therefore more "experienced".

Telling everyone there is a "glut" of lawyers, and then artificially suppressing wages without a corresponding drop in legal fees tells us that this is merely profiteering by the firms. But we will always have idiots like the OP who are salty of the salaries of NQ lawyers, without understanding the amount of value an NQ lawyer brings to the firm.
The only important point was "the breakeven point for hiring a fresh lawyer is estimated at 3x their pay" - who comes up with this stuff?

It seems so arbitrary, like an excuse to work backwards and say because I bill $600k a year, I should be paid $200k a year and therefore ~$17k a month.

What kind of client is willing to instruct a bunch of 24yos who each earn $17k a month?
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