Andy Havens has this great post (a rant, really) titled "When Your Only Tool's a $115k Hammer" about how the management at large firms justify the huge associate starting salaries as a benefit to the client.   Speaking of this law.com article, Andy pulls a quote from Howard Scher, managing partner of Buchanan Ingersoll's Philadelphiaoffice -- one of the firms that has just bumped starting salaries from$105 to $115K -- who says,

Wehave clients who want first-class legal representation, so we have tocompete for the best people. While I don't think that $5,000 or $10,000should be the basis for making a career decision, it is for people atthat stage of their careers.  So we hope this shows law students thatBuchanan Ingersoll is a first-class firm.

Now, Andy's take:

Look at the quote above: "We have clients who wantfirst-class legal representation." No offense to Mr. Scher and hisfirm, which is a very nice joint (especially since I'd love to consultfor him; call me, Howard -- 614.395.4134), but I have a question; isthere a firm out there with clients who want second-class legalrepresentation? Is there a general counsel out there who wakes upthinking, "You know what? My outside representation is too damned good.I'm going to fire them and hire some hacks."

Second point. Do you care what any service provider inyour entire world of purchasing behavior has ever paid any of theirworkers? I want you to think very, very hard. Have you ever thought toyourself, "I should check and make sure that my surgeon (dentist,mechanic, kids' teacher, banker, insurance agent) is the HIGHEST PAIDPROFESSIONAL IN HIS INDUSTRY!!??

No. You never have. Ever. You care about the quality of service.Period. And in many cases, quality of service does NOT track on a1-to-1 basis with what employees are paid. It more often equates to thelevel of respect they are provided, the amount of feedback they have intheir organizational systems, how well they are managed, their level ofpersonal mentoring, etc.

But, just as the billable hour is the only measure bywhich law firms seem capable of judging productivity, associate pay isthe only measure by which they seem capable of esteeming quality,rewarding it and (this is the huge disconnect) communicating the sameto both clients and associates.

I'd love to just copy the rest of his post word-for-word, but you owe it to yourself to check out the rest of it here, and read the rest of Andy's terrific blog while you are at it.  I can't resist this one more snippet, though: 

You are sending them a bad, wrong, unhealthy and, ultimately,self-defeating message. If the only way you can get "the best" studentsto come to your firm is to pay them $10k more a year... Let them go toother firms. Take the "Tier-2" kids who want to work somewhere withheart, guts, moxie, brains and staying power. I guarantee that in a fewyears your clients will love those kids way, way more than they everwould any shiny, greedy "A-Team" gold-diggers.