Latham & Watkins and Gibson, Dunn & Crutcher announced Friday that they will increase first year salaries in NY to $160,000, but only to $145,000 in CA and other offices. Because several firms have refrained from matching CA salaries to those of NY, other West-coast firms feel less pressure to increase. Billing rates, cost of living, and other issues make the two markets very different; most California firms are making pay raises to reflect that difference. However, one of the factors involved in the decision to raise salaries is whether or not the firm wants to be considered a top-tier firm.
Source: www.law.com