Associate Bonus Watch: Wachtell Lipton Windfalls
Ah yes, the legendary bonuses of Wachtell, Lipton, Rosen & Katz. Tout le monde wants to know: So, just how big were they?
Very big (and bigger than yours). We can't give up specific numbers for specific classes, because that might get our sources in trouble (and WLRK is a pretty small firm).
But we'll just make these general observations:
1. Wachtell Lipton pays base salaries that are at (or even slightly above) market.2. Earlier this year, they paid out midyear bonuses ranging from $15,000, for the newest associates, to $50,000, for the most senior classes.
3. When you add the midyear bonuses to the year-end bonuses that were paid out earlier this week -- on Tuesday, December 12 -- every class at Wachtell received 2006 bonus compensation equal or slightly greater than 100 percent of base salary.
4. This year, the percentage of bonus as base varied a bit from class to class. Historically this hasn't always been the case; when we were there, it was pretty much constant.
Executive summary: Take your base salary, double it, and that's what your law school classmate who went to Wachtell earned in 2006, "all in" (base salary + mid-year bonus + year-end bonus).
A shameless plug for our former firm, based on the time that we spent there (2000 - 2003), after the jump.
We worked at Wachtell Lipton for two and a half years, from 2000 to 2003, and we recommend it highly. It's a great place to work whether you want to make a career out of Biglaw or want to move on after a few years.
Here's a synopsis of our WLRK experience. We worked with some brilliant people, some of whom remain good friends to this day, on some phenomenal cases; learned a lot and got a ton of experience (e.g., depositions, a trial, appellate briefs), despite being so junior; and did very well for ourselves financially. This allowed us to move to the U.S. Attorney's Office, and then into blogging and freelance writing, without downsizing our lifestyle. So if you plan on spending only a few years in Biglaw, you might as well get the most out of them, in terms of both money and lawyering experience.
If you want to make a career out of large firm practice, the appeal of Wachtell is obvious. Yes, the associates (and partners) at Wachtell work harder than most. But they're working on interesting, cutting-edge, headline-making cases and deals. And as you can see from the firm's associate bonuses, as well as its profits-per-partner, the rewards for the marginal effort are outsized. For associates, a few hundred additional billable hours can add six figures to your paycheck. For partners, those extra hours can add seven figures to your annual partnership draw.
And that's assuming you work harder than your friends at other firms. When we were at WLRK, we billed around 2700 hours a year (and worked quite a bit more -- we weren't very efficient). Those hours are nothing to sneeze at. But we had friends at other firms who worked just as hard or harder than we did, yet made significantly less. Several of them would tell us, especially around December, "I wish I had taken that Wachtell offer."
So if you have the opportunity, go to Wachtell. You won't be sorry.
Earlier: Prior ATL coverage of bonuses (scroll down)
(28) Comments
We, we, we....this is a bit annoying. YOU were at Wachtell, David, so refer to yourself in the singular for crying out loud.
personally, I think you're undervaluing the time that is required to work there - I know many people who consistently bill more than 2700 at Wachtell, and to me, every hour that one bills over about 2350 comes at an enourmous price in terms of quality of one's life (which, by any reasonable standard, is already pretty shitty at 2350). But you're right, at least they double your salary, which is more than a lot of firms would do.
That's so lame that you won't give the specific numbers. If you want to be the hub of information during bonus season, refusing to give specifics on the only firm that actually differentiates itself and is of the most casual interest is just stupid.
The percentage didn't deviate very much from 100 percent. So just take your base salary and double it, and that's the bonus for your WLRK class.
Year-end bonuses were slightly under 100 percent. But with the September bonuses added, total bonus comp equals or exceeds 100 percent of base.
At these levels, the specific numbers don't matter much. Nothing turns on whether we got 100 or 105 percent of your base as our bonus.
Wachtell is on a league of its own, that much is free from doubt. Having said that, after a pretty miserable year in which I (will have) billed approx 2530, I can't imagine life at the 2700 range, not to mention 3000+ (well, I actually can imagine such a life - frequent, recurring thoughts of suicide).
WLRK Insider,
If "nothing turns" on minor deviations, then the whole point of reporting on bonus season is pretty stupid. All of the posts now are pretty much focusing on a $5k difference in pay for 7th years.
I agree that, in general, minor deviations aren't worth as much effort and time as is put into them; but if we're going to obsess over bonus specifics at every other firm, why not Wachtell?
Incidentally, I don't have a base salary. I'm a student with more than a passing interest in Wachtell's bonus structure.
Nothing turns on the Wachtell bonuses because the other firms aren't competing against them.
The reason we obsess over what the NON-Wachtell firms do is because it might affect how much we take home. If somebody coughs up an extra few grand per class year, the others might follow suit.
But whether Wachtell grossly overpays its associates or disgustingly overpays its associates doesn't affect anyone else.
no disrespect, but i assume you didn't handle a trial yourself? or it was pro bono? cause i can't imagine wachtell having a small enough trial (or appellate brief) a junior associate can handle on his or her own.
No no, I worked on a case that went to trial -- along with a cast and crew of thousands...
Working on a case that went to trial may not sound like a big deal. But given how many cases settle, especially cases handled by big firms, it is worth noting.
Many litigators make partner at top firms without ever having taken a case all the way to trial. It's just discovery and more discovery...
yes, i know (work at big firm, actually once worked with you briefly).
One of my Harvard Law classmates (2000) billed 3600 hours in his first year at Wachtell.
I have a serious question to the ex- and current Wachtell guys: guys who used to work at Cravath or Skadden (or that matter, guys that went to Harvard or worked at Goldman) always drop into conversations the famous "back in my days at..." or "when I was at..." Do Wachtell people generally have the same attitude? For some reason I don't know many (while I know tons of the ex-Cravath, Skadden, Harvard or Goldman guys).
there are less of them for one thing, (wachtell) -- but I would say Wachtell thinking dominates how ex-associates, or even partners, think. You go to a firm or bank and it molds the way you approach problems etc. Frankly, this is why these ex-associates are in such high demand.
there are less of them for one thing, (wachtell) -- but I would say Wachtell thinking dominates how ex-associates, or even partners, think. You go to a firm or bank and it molds the way you approach problems etc. Frankly, this is why these ex-associates are in such high demand.
there are less of them for one thing, (wachtell) -- but I would say Wachtell thinking dominates how ex-associates, or even partners, think. You go to a firm or bank and it molds the way you approach problems etc. Frankly, this is why these ex-associates are in such high demand.
But no special bonus? Suck it, Wachtell associates!
lmao @ 12:17
12:17: maybe lat is really smeagol/gollum...
Adding seven figures? So their partners draw, like, $30,000,000,000,000 a year?
guys at my high school used to bill 3100 hours as summer associates at Wachtel, it was no big deal.
Add seven figures = add $1,000,000 to $2,000,000 over a comparable firm.
3600 hours is retardonkulous. I work for a Chicago biglaw shop (albeit on the West Coast), billed 1800 hours my first year, and make half of what a Wachtell first year makes. I'll take my 1800 hours of free time over the extra cheddar any time. It's not like one year at Wachtell is going to faciliate retirement (especially given the cost of living in NYC vis-a-vis California).
We think all of you should stop using third person. It gives us headaches and makes you sound like douchebags. Starting now, we are no longer reading your websites. Instead of being website administrators, perhaps you should all think about mountaineering.
a) The Pluralis Majestatis is (i) annoying and (ii) your are NOT entitled to use it.
b) yes, it sucks to work in one of the other Top of the Pop firms (i.e. Cravath, Skadden, Davis Polk, Simpson Thatcher) and not earn the same $$. We also work on "interesting, cutting-edge, headline-making cases and deals", we bill thousands of hours (and work even more because we're not efficient - thanks to Above the Law) and still...the bad WLRK boys and girls make more $$. Why do bad things happen to good people??? WHY? [Well, at least at Davis Polk the people are just really good looking and hot. Something you can't say about WLRK people...sorry Lat]
Golly, such a lot of envy and bile in the reponses.
If you are truly annoyed so much by the use of "we" that you are compelled to post about it, then perhaps you shouldn't read a story about Wachtell in the first place. It's clearly too trying an experience for you.
Few lawyers get to work at Wachtell, and those who do make a very large amount of money. I'm sorry I don't have an offer from Wachtell, but that doesn't make me want to tear down those who do.
Go sulk offline.
As long as everyone else is commenting a year later, I will too:
What on earth is the value in putting in a plug for Wachtell? This post is talking to the top n% at the top, what, five schools? And what percentage of them read this blog? So, fantastic, you wrote a post for four people.
does anyone work part time at wachtel?
Is it true each associate gets her own office?