Big Law Life #59: Choose How Many Hours You Bill: Steptoe’s New Associate Compensation Model with Kate Cappaert
In today’s episode, I sit down with Kate Cappaert, a partner in the Intellectual Property group at Steptoe. We discuss a major shift in Steptoe’s associate compensation—one that gives lawyers more control over their careers and work-life balance.
Steptoe’s new model allows associates to choose from three different billable hour targets, with corresponding salary levels, providing a level of flexibility rarely seen in Big Law. We explore how this model was developed, the firm’s commitment to maintaining an open dialogue with associates, and what it means for career progression, partnership considerations, and recruiting.
Kate, who serves as chair of Steptoe’s Professional Development Committee, shares insights into how the firm designed this initiative to address long-standing concerns from associates while ensuring that firm goals and client service standards remain intact.
At a Glance:
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0:00 Introduction: The shift in associate compensation that led Steptoe to rethink the billable hour model
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1:20 A unique approach: Why Steptoe introduced three billable hour targets and how they work
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2:57 The firm’s motivation: What associates wanted and how this model addresses their concerns
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5:06 Flexibility with structure: How the tiered approach allows associates to adjust their hours annually
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7:15 First-year associates: Why they start with a standard target before choosing a path
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9:02 Moving across tiers: How associates can adjust their billable targets over time
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10:45 Impact on partnership: Whether choosing a lower tier affects promotion prospects
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12:30 Compensation considerations: How salary and bonuses are structured within this model
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14:15 Partner perspectives: How firm leadership responded to this shift in associate compensation
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16:40 Recruiting implications: How this new model is shaping lateral hiring and on-campus recruiting
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18:55 Training integration: How non-billable training hours are factored into the new compensation model
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21:30 Looking ahead: How Steptoe will evaluate the success of this approach in 2025
Article describing Steptoe’s associate compensation program: https://www.law.com/americanlawyer/2024/12/09/steptoe-offers-associates-new-flexible-billable-hour-tracks-in-revamped-comp-system/
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For Apple Podcasts, click here, scroll to the bottom, tap to rate with five stars, and select “Write a Review.” Then be sure to let me know what you loved most about the episode! Also, if you haven’t done so already, follow the podcast here!
For Spotify, tap here on your mobile phone, follow the podcast, listen to the show, then find the rating icon below the description, and tap to rate with five stars. How to reach Kate Cappaert: https://www.steptoe.com/en/lawyers/katherine-cappaert.html
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