Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Climb the ledger case study Your Turn Climb the Legal Ladder several years ago, Sullivan & Cromwell, a large New York law firm with offices around the world, its salary for law school graduates to from $145,000 the previous year
Climb the ledger case study
Your Turn Climb the Legal Ladder several years ago, Sullivan & Cromwell, a large New York law firm with offices around the world, its salary for law school graduates to from $145,000 the previous year. starting salaries have not increased since. Indeed some firms have cut and/or jobs. The New York Times that law firms have seen a decline in for their services since the financial crisis. In fact, Dewey & founded in 1909, which just a few years ago had 2,500 employees (including 1,400 attorneys in 26 offices the world, filed for bankruptcy. Although the root cause can be one nt of view is that the firm embraced unfettered growth (including a large merger in 2007 and engaged in aggressive "poaching" of from other firms by offering large, guaranteed pay When business declined, were stuck with large fixed compensation they Indeed, costs and also, some would argue, a weakened culture, making it difficult to rally the troops. top most partners, once they felt things were going downhill, defected to other firms. In such firms, partners might earn 9 times what some other partners earn. In contrast to Dewey & LeBoeuf approach, many law firms still follow the traditional law firm approach to compensation, which is
Expert Solution
1. Associates at Sullivan & Cromwell wil not feel that their pay structure is fair if they will compare the same against other law firms .They will compare their base salaries and bonuses with those offered by the competitors to their associates. The Sullivan & Cromwell's pay structure will make them laid back and they may also start looking for opportunities at competitors law firms.
2.The associates who have joined 4 years ago must be earning a base salary of $210000 annualy. If the salary for new associates is increased by $20000 then those of others should also increase accordingly as otherwise the experienced associates will feel demotivated as it is the salaries are not at par with competitors.
3.What is missing in writer's analysis is that the content and value of the jobs performed by the partners is much higher than the content and value of the job performed by the associates. Additionally the partners carry more risk as their compensation also depends upon the profits of the law firm so if there is a loss it will be reflected in their paychecks and secondly they run the risk of being sued where as the associates do not have this risk and their compensation is fixed.
4.The actual range in which the employees have received compensations are drastically lower than what was available . It only tells about low motivation levels among employee at all levels. They will have difficulties in recruitment because it will be difficult for them to explain to the prospective new recruits the reasons for low actual bonuses. Retention is already an issue as low motivation levels are reflected in the bonuses which employees actually receive.
5.Sullivan & Cromwell approach was more of a conservative traditional approach than the aggressive approach approach of Dewey and LebBoeuf .
The advantages of Sullivan & Cromwell approach are :
1. It is a balanced and stable approach
2. It is for long term
3. Overheads are low .In law firms salaries which are part of overheads forms major part of expenditure . Salaries are lower.
Disadvantages are
1. Employee motivation may be low .
2. Employee morale may be low.
3. Since they do not believe in poaching at higher levels and promote from within they may miss fresh innovative ideas at middle and at top level.
The advantages of Dewey and LebBoeuf are :
1. Fresh refreshing ideas at the top and middle level on accounting of hiring from out side at these levels.
2.Since salary structure is better employee motivation and morale will be high.
Disadvantages are:
1. They will have less balance and stability.
2. In case of any down turn they can have bankruptsy as salary levels are higher.
3. The structure is suited for short term.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
