West Coast Pay Raise Watch: The Heller Ehrman ‘Raise,’ and a Request for Bonus Information
Fear not, ATL readers. We’re already on the case. We are collecting information about the bonus structures of different law firms, with a focus on West Coast or California law firms.
To make this effort a success, we need your help. Please send tips and memos to us by email (subject line: “Bonus Structure”).
(We should warn you that it may take a little time to collect and process this information. So don’t expect a comprehensive report immediately.)
Why do bonuses matter so much? As it turns out, law firms that are paying base salaries that are the same (nominally) actually compensate similarly hardworking associates quite differently. Significant differences exist between Biglaw shops in terms of the hours-based bonuses.
One example of why bonuses matter: the just announced Heller Ehrman “raise” (memo after the jump). From a tipster:
Note that because Heller has eliminated a previously-existing automatic bonus payout at 2000 exactly equivalent to the amount of “adjustment” to the base salary, this move amounts to a “raise” of $0 for anyone billing over 2000 hours (i.e., most everyone). I implore you to solicit memos and other information relating to the bonus structures of firms—particularly firms following the “California model” of paying out rigid, automatic bonuses at various hours-targets. Without such information public, firms (like Heller and MoFo) assume that they can trick law students into believing they’re “competitive” when in fact they may be below market in terms of real compensation. (NY was already at $160k, and they apparently still get their 2000 hours bonus on top of that.)
An interesting comparison, after the jump.
And then there’s this, from a second helpful tipster:
An anonymous tip for you on the new base comp vs. bonus structure in California. Attached are Orrick and Heller memos that discuss bonuses along with base salary. [Ed. note: Heller memo appears below. The Orrick memo, which is a long Word document, will follow later.]A third year at Heller billing 2100 hours will make $185,000 base plus $8,000 bonus now.
A third year at Orrick billing 2100 hours will make $185,000 base plus $45,000 bonus now.
I don’t have a MoFo memo, but this same analysis needs to be done.
This very big discrepancy needs to be publicized. Please post!!!!
We thank our sources for this information.
HELLER EHRMAN
To: All associates in the Los Angeles, Madison, San Diego, San Francisco, Seattle, Silicon Valley and Washington D.C. offices
Cc: FW – Shareholders; Administrative Management; New York Associates
From: Rob Hubbell, Judy Miles and David Sanders
Date: Friday, May 11
Subject: Associate Salary Adjustments
The following email is being distributed to all associates in our Los Angeles, Madison, San Diego, San Francisco, Seattle, Silicon Valley, and Washington D.C. offices.
Heller Ehrman is committed to attracting and retaining highly skilled associates for our firm. We also understand the importance of remaining competitive to ensure we recruit and retain valuable employees.
In response to recent changes in the market, we will adjust associate salaries in our Los Angeles, Madison, San Diego, San Francisco, Seattle, Silicon Valley, and Washington D.C. offices. These changes are effective June 1, 2007. You will see these adjustments reflected on your June 22 paycheck.
Below are the updated salary structures. The Associate/Special Counsel website located on our firm’s intranet will also be updated in the next week to reflect these changes.
At the end of 2007, any bonus-eligible associate who makes less than they would have under the former compensation model will be paid the difference in January 2008.
Please contact your local Office Managing Shareholder or Human Resources Manager with any questions about these changes.
Thank you,
Rob Hubbell
Judy Miles
David Sanders
National
2007 Basic Bonus
Level 2007 Base 2100 Hrs 2200 Hrs 2300 Hrs 2400 Hrs 2007 Enhanced Bonus 2007 Potential Compensation
1 $160,000 $5,000 $5,000 $5,000 $7,000 $0 - $15,000 $197,000
2 $170,000 $7,000 $7,000 $7,000 $10,000 $0 - $15,000 $216,000
3 $185,000 $8,000 $8,000 $8,000 $12,000 $0 - $17,500 $238,500
4 $210,000 $9,000 $9,000 $9,000 $14,500 $0 - $20,000 $271,500
5 $230,000 $10,000 $10,000 $10,000 $15,500 $0 - $20,000 $295,500
6 $250,000 $10,000 $10,000 $10,000 $15,500 $0 - $25,000 $320,500
7 $265,000 $10,000 $10,000 $10,000 $15,500 $0 - $25,000 $335,500
Seattle
2007 Basic Bonus
Level 2007 Base 2100 Hrs 2200 Hrs 2300 Hrs 2400 Hrs 2007 Enhanced Bonus 2007 Potential Compensation
1 $145,000 $5,000 $5,000 $5,000 $7,000 $0 - $15,000 $182,000
2 $150,000 $7,000 $7,000 $7,000 $10,000 $0 - $15,000 $196,000
3 $160,000 $8,000 $8,000 $8,000 $12,000 $0 - $17,500 $213,500
4 $180,000 $9,000 $9,000 $9,000 $14,500 $0 - $20,000 $241,500
5 $190,000 $10,000 $10,000 $10,000 $15,500 $0 - $20,000 $255,500
6 $210,000 $10,000 $10,000 $10,000 $15,500 $0 - $25,000 $280,500
7 $225,000 $10,000 $10,000 $10,000 $15,500 $0 - $25,000 $295,500




Comments
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The Heller and MoFo plans are actually worse than a $0 raise because they are not retroactive to Jan 1. Although a move from $145K to $160K may look like a $15K raise, it is in reality about slightly more than half of that because the raise only goes into effect in May or June. If 15K is subtracted from the bonus, then this is a paycut. I may be off on the exact numbers, but don't fall for this shell game. The time value of money helps a little, but it still looks like a loser.
Thank you Lat! I will finally see exactly how much my firm is actually ripping me off! This is the only thing that will force firms to get real on compensation.
Also terrible. Every other firm made retroactive to at least May 1, correct? Terrible Heller. Absolutely Pathetic.
Ditto to 4:03.
I call on Heller, MoFo, and any other firms that decide to go backwards on bonuses to rethink their plans. I agree with 4:01 that this is a shell game.
i've been hitting the pecks hard. how much do you think i can bench press?
4:01 and 4:06 are right. Salary increases should be retroactive to Jan. 1, especially if the 2000 hrs bonus is eliminated.
I'm guessing 190 NYs.
4:07....i bet you're ripped. i'm guessing 205 lbs.
This site really has become a phenom in the way it pushes the market for compensation. Firms could save a lot of money by pooling their resources and paying Lat a couple mil to go back to Wachtell, or LA, or wherever it is he came from.
Thank you Lat. This is the most important thread of the last two weeks, by far.
I would just like to point out that in DC, most of the "homegrown" firms do not pay automatic bonuses for meeting or even exceeding hours. In fact DC firms give notoriously low bonuses. For example, there is no way a first year at one of the large, homegrown, DC firms will get paid $197,000 even at the new scale.
Cheap.
They understood that it might come out to a pay cut - notice this part of the email:
"At the end of 2007, any bonus-eligible associate who makes less than they would have under the former compensation model will be paid the difference in January 2008"
DC shops seem to have the same CA model for bonuses, could they be included in this survey?
4:15: I bet he could push himself to press 230 if he were properly incentivized by a Orrickesque bonus structure. If he's at MoFo or Heller... maybe he's only pressing 190-195.
They understood that it might come out to a pay cut - notice this part of the email:
"At the end of 2007, any bonus-eligible associate who makes less than they would have under the former compensation model will be paid the difference in January 2008"
Notice the phrasing "bonus-eligible." The definition of that term is now based upon achieving 2100 hours, not 1950 or 2000 hours. Thus, an associate that bills 2050 hours is receiving a paycut because he or she is no longer bonus-eligible and does not qualify for the make-up pay.
$160k in Madison literally nets you a mansion on your choice of the city's beautiful lakes. Being a 1st-year associate at Heller in Madison has to easily be the most bang for buck of any BigLaw gig.
I don't know what's weirder, the righteous indignation of associates demanding equal pay for different work at different firms, or the fact that we have such incredible collective bargaining powers without even having (the right to) a union.
Hey Lat, thanks for all your work on this.
I think many of us out on the West Coast are really interested in seeing the Orrick memo with bonus information if you could post it.
Yeah, at 2050 you've made 152.5 for the year as a first year, right? And you would have made 160 without the "raise"?
How in the hell does wetmore figure his partners will take home LESS money this year?
pillsbury just bumped
Could we start pushing the DC firms, they are always the last firms to join the bandwagon when it comes to salary. Could we also do bonus info on DC?
Lat, could you stop calling it the West Coast raise... this is also a DC raise!
Raising salaries is important to firms for primarily two reasons: 1) attracting new talent; and 2) retaining current talent.
The more salaries affect these two points, the more likely it is that a firm will continue to raise salaries (up to the point that it is no longer profitable to do so). We are probably a ways from reaching the ceiling.
Making a lateral move is difficult, so let's focus on the first: Law students that are reading these posts should specifically ask the firms that haven't raised yet whether they plan to do so. This will reiterate to these firms the importance of salaries in attracting new talent. It will remind them that they are competing on salary and that failing to be competitive here will likely result in the loss of quantity and quality of new hires.
Orrick is coming out of this affair smelling like roses. Earlier this year, it signficantly increased its bonus structure; now, by raising base salaries without any concurrent reduction in the bonus structure (and by initiating this raise), it really has thrown down the gauntlet. The other West Coast firms were taken completely off guard by this move and are now scrambling to find a way to be competitive.
As for the "rasises" at MoFo and Heller (especially Heller), I think that their hollowness will quickly come to light. Ultimately, this maneuver will come off as worse than no raise at all, since it reflects disingenuous motive to deceptively avoid paying the market rate.
I also think that Orrick's raise was in part a willful attempt to stratify the California market. Orrick's financials are very strong right now, and the firm is pressing this advantage. We already knew that firms like Thelen were unlikely to match this market shift; it now appears that others may fall into this category.
Madison!!!!!!!!! I love it.
4:36 - There are similar small market gigs around the country (I am at one) that I imagine are pretty close in the "bang for the buck" department - this is encouraging for us.
Orrick is coming out of this affair smelling like roses. Earlier this year, it significantly increased its bonus structure; now, by raising base salaries without any concurrent reduction in the bonus structure (and by initiating this raise), it really has thrown down the gauntlet. The other West Coast firms were taken completely off guard by this move and are now scrambling to find a way to be competitive.
As for the "raises" at MoFo and Heller (especially Heller), I think that their hollowness will quickly come to light. Ultimately, this maneuver will come off as worse than no raise at all, since it reflects disingenuous motive to deceptively avoid paying the market rate.
I also think that Orrick's raise was in part a willful attempt to stratify the California market. Orrick's financials are very strong right now, and the firm is pressing this advantage. We already knew that firms like Thelen were unlikely to match this market shift; it now appears that others may fall into this category.
Good point 4:44 - Law Students of the world, help the classes above you who will be assigning you work in years to come. Ask about pay raises now. Don't be afraid. We all do it.
Madison!!!!!!!!! I love it.
4:36 - There are similar small market gigs around the country (I am at one) that I imagine are pretty close in the "bang for the buck" department - this is encouraging for us.
any confirmation on the pillsbury bump? did they cut bonus?
I think the title for this entry (and all other entries that throw bonuses into play) should be "HELLER CUTS SALARIES."
Name the issue, control the issue.
It is all fun and games until firms start the "secret salary" BS propagated by Jones Day. The cure for information transparency? Less information.
4:42 -- Pillsbury has not bumped yet, or at least they have made any internal statements to that effect.
Orrick is coming out of this affair smelling like roses. Earlier this year, it significantly increased its bonus structure; now, by raising base salaries without any concurrent reduction in the bonus structure (and by initiating this raise), it really has thrown down the gauntlet. The other West Coast firms were taken completely off guard by this move and are now scrambling to find a way to be competitive.
As for the "raises" at MoFo and Heller (especially Heller), I think that their hollowness will quickly come to light. Ultimately, this maneuver will come off as worse than no raise at all, since it reflects disingenuous motive to deceptively avoid paying the market rate.
I also think that Orrick's raise was in part a willful attempt to stratify the California market. Orrick's financials are very strong right now, and the firm is pressing this advantage. We already knew that firms like Thelen were unlikely to match this market shift; it now appears that others may fall into this category.
pillsbury is not just a west coast bump, it is also a DC bump
Heller and Mofo should remain on the list of shame.
Heller in particular for NOT making retroactive and for nixing non discretionary bonuses.
Interesting in terms of the bonus structure. They have to know that associates won't be busting ass to exceed hours. It seems to discourage rather than reward high producing associates. But, if this is a place where you know with relative certainty you are going to come in every year below 2000 hrs and managment is simply pleased that you come close to hitting hours, then its fine.
However, obviously, the fact that things are getting changed midstream for some people sucks - e.g. if you are on track for 2100 or more or regularly bill alot.
I'd be curious to know - is this a place where billing 2200-2500 hrs is the exception or the rule?
ya and maybe orrick will fall apart like brobeck, baxter is very aggresive
Hey Orrick Associate - quit posting the same post over and over again. I don't care what Orrick smells like.
I think the Heller and MoFo schemes will become a public relations nightmare. I hope other law firms that are planning their moves are understanding that this scheme will not work.
4:54: Thanks Mr. Wetmore.
NYC 190, now.
Interesting in terms of the bonus structure. They have to know that associates won't be busting ass to exceed hours. It seems to discourage rather than reward high producing associates. But, if this is a place where you know with relative certainty you are going to come in every year below 2000 hrs and managment is simply pleased that you come close to hitting hours, then its fine.
However, obviously, the fact that things are getting changed midstream for some people sucks - e.g. if you are on track for 2100 or more or regularly bill alot.
I'd be curious to know - is this a place where billing 2200-2500 hrs is the exception or the rule?
The large majority of associates bill over 2000, which is what's relevant.
I can say that the target audience wasn't fooled. We're 4 months from 2L OCIP and the only thing that we've been talking about (other than finals) is how there's a couple firms that are dicking with the bonuses.
MoFo seems to be getting the brunt of the criticism at my school, but I can say that every student going through OCIP will know which firms have real raises and which are the ones that are just insulting us by trying to jerk us around. I recommend to any firm who is giving fake raises to clear this up before August rolls around or they may have a tougher time recruiting. It's not about the money- it's more a symbol of the way the firm approaches compensating it's hard working associates...
5:07 makes good points. MoFo and Heller have a real problem on their hands. Why are they effectively cutting compensation while others are raising? Are they having problems?
5:00
Where did this Pillsbury rumor come from?
This weekend all 2L and 3L law students should write a polite email to prospective firms that haven't raised asking them their plans. Report back on what you hear.
I suspect that law firms are going to have to make up their minds soon. Summer associates will be starting soon, and they traditionally make what a first year makes per week.
5:00, where are you getting your info?
Pillsbury hasn't made any internal announcements, but it's possible someone in the know has leaked. I wouldn't be surprised if PWSP makes an announcement before 5pm PDT, though.
5:07 - Can't speak for Heller, but MoFo isn't having problems. Due to its different culture, it's not going to be pulling in GD&C money any time soon, but it's still doing quite well financially, and its relevant financial indicators have been going up consistently, usually at better than 10%/year. That's why their apparent refusal to pay market (if market really is what it appears to be) is so baffling. They like to say they're in the same tier as LW, OMM, and GD&C, but then treat their associates like Heller.
I don't know much about Heller. But is their management so ignorant as to the fact that this site makes slick moves like what its appears to be fairly transparent and to a large degree embarassing?
My firm got rid of the hours-based bonuses a few years ago. It has produced a large group of people who aim to hit 2000 and take the base bonus, which is given to all associates in good standing (between $27.5-45k depending on year).
There are also some people who can't or won't say "no" to work and bill 2200-2400. Some of these people are given discretionary bonuses above the base and are happy, some aren't and quit shortly thereafter. Because exceeding 2000 no longer guarantees any extra money, only those gunning for partner do it willingly. Partners imply that if you want to get above base, you need to bill above base, but there is no guarantee and many associates have been screwed.
5:22, Heller and MoFo PPP and RPL are roughly equivalent, and are both significantly behind those numbers at LW, OMM and GD&C.
But I think Orrick's in the same boat as MoFo and Heller, and they didn't see the need to pull this shit.
Heller and MoFo should reconsider their compensation cuts. They should be embarrassed.
5:22, you're right, but MoFo grades out ahead of Heller in every other metric. That's why most ranking services put them well above Heller, and usually pretty close to OMM and GDC.
Different culture at Mofo? Get real. No one buys that crock of sh!t anymore.
I don't know if they're in great shape or not, I'm just glad they raised.
If Orrick had cut bonuses then everyone would have cover to do it.
The comparison at the top of the thread on Heller and Orrick for a third year is even worse for first years.
Figure you're a normal guy and knock out 2000 flat. At Heller or MoFo, you go home with your paycheck and a $0 bonus. At Orrick, even as a worthless 1st year, you'll still see a bonus of at least $25-$35k (not working there so I don't know for sure), and more if you stretch and bill 2100.
Working for a year at Orrick pays as much as working for 14 months as MoFo or Heller (or any of the low-bonus DC shops).
They really did segment the market. I hope the 2Ls can see the difference.
That's a pretty balsy spin by Heller and company:
"Hi, we're Heller/Wilmer/JonesDay/MoFo, and we're market leaders in compensation. We pay the same as the top firms, only we give you less money."
What's associate life like at Heller? Aside from the (apparently) lowish pay is it a sweet enough gig? How many hours are most people billing there - is it a sweatshop or do you have weekends largely free?
Smell my finger. I've been sitting on it for the last half hour, and do you know what it smells like?
ROSES!!!!
5:35-I've been at MoFo since last fall and have worked maybe 20 weekend hours total, am almost never at the office past 6:15 or 6:30, and have racked up a significant amount of pro bono hours that count the same as my other hours. I work hard, but I don't work crazy. BigLaw is BigLaw, but there are distinctions.
"I'm just glad they raised."
Hey 5:36, newsflash: they didn't.
5:54: a raise is still a raise. I'd much rather have guaranteed base pay up front than a bonus which is by definition not guaranteed. And while I appreciate that most people on this board are bonus eligible, a lot of slow practice groups right now have already written off their chances of making hours requirements. Believe me, a raise that I'll immediately see in my pocket is better than a bonus which I may or may not see.
I'm all for calling bullshit on firms that cheap out on raises (like my own), but it's a separate matter from base pay.
5:57 - Wouldn't having a lot of slow practice groups be a reason not to raise?
4:48--what other firms in small markets pay like this?
5:57, I don't want to subsidize people who are working way less than I am, whether it's their fault or not. Regardless of the cause, those people are at home while I'm stuck away from my family billing hours. And now you want the profits I bring in to the firm to get funneled into your salary on top of that? *That* is greedy.
I'm talking about the general ebb-and-flow slowdown of practice groups in every firm. You think the real estate market is going to be going strong forever?
6:09 - There are maybe 3 big firms in the country where real estate generates the kind of profits it takes to give these raises. Otherwise your ass is being carried anyway.
6:09,
Maybe you should stand up for yourself at work, erect some boundaries, turn down assignments when you think you're headed past your billable requirement, and go home and spend time with your family.
6:14,
HILARIOUS!
Wilson Sonsini has not yet raised. But, it will be interesting when they do to see if they cut bonuses. Last year all associates meeting 1900 hours got at least $23,000.
6:14--Right on! That is a key skill that we tell summers to practice (remember kids, we want you to turn in your best work product, so don't take on too much work), and yet practicing associates forget about it all the time. The firm is going to take everything it can from you, so you have to be the one to set limits.
6:38, in that case, even without a "raise," Wilson pays more than Heller or MoFo. Does anyone at Wilson actually not meet 1900?
Anyone know what the MoFo 2100 and 2300 bonuses actually are now?
Will someone just freaking tell us whether Pillsbury has bumped. Thank you.
6:14 and 6:40, that still doesn't make it sound policy for a firm looking to be profitable to eliminate an incentive to work hard. Your posts simply confirm the stupidity of this move on Heller and MoFo management's parts. If they're worried about giving real raises because they don't think they can afford it, this is a great way of making sure they'll continue to be less able to afford raises than the big boys.
There has been no internal word on Pillsbury.
Come on Chicago!
PWSP's summer associates start Monday. If PWSP does not announce before the summers start, that's a big bullet with which they've shot themselves in the foot.
pillsbury summers here in sf start the monday after next. and no announcement yet.
Pillsbury summers: knock off the spamming. Anonymous commenting isn't going to speed up any announcement.
Wilson Sonsini will not cut bonuses, since there is no indication that Cooley has done so and because Orrick is gunning for Wilson's market. What Heller does should be irrelevant; as for MoFo, Wilson will hopefully take this as an opportunity to show them up rather than go down to their level.
7:26(2): comments are not from summer spammers.
7:26(1): WDC, NoVa, LA, Sacramento and NYC (but let's put NYC summers aside since all 44 of them will be getting paid market) start Monday; SF and San Diego start later. Still, better to make a good impression on the summers first, no?
It's 4:50 now... ten minutes left for PWSP to salvage things by sending out an announcement. Otherwise, egg, meet face, meet unhappy associates.
it is 4:49 on the west coast. That means it is only 7:49 on the east coast. Yet commenting activity has slowed down considerably. I have noticed that this happens every day. This leads me to believe that the whole new-york-associates-work-all-day-all-night-and-all-weekend-thing is a crock. There must be much padding going on if they're claiming to bill so many more hours than us...
Wilson is just figuring out what to do about regional offices (Sea, Aus, SLC).
CA and DC are gimmes and they probably won't cut bonuses. May be effective June 1 though.
Maybe they aren't posting as much now because they're doing the work they put off all day while checking this site?
Lat, you need to test your market power. As NY raised to 160, you posted the List of Shame for the last 10 or so firms to come around. Now, it's time post DC Shame on the front page. I'll bet the decisions come twice as fast. Once we're proven right, you can post the NY 190 List of Shame before ANYONE announces. YOU ALONE HAVE THE POWER!
please post the list of shame for CA and DC on the front page!!!
NY to 190!!!!!!!!!!!!!!!!!!!!!!
Hey, whatever happened to the promised Orrick memo?
It'd be nice to see at least someone getting bonuses.
This is the most absurd part of the Heller memo:
"Heller Ehrman is committed to . . . retaining highly skilled associates for our firm. We also understand the importance of remaining competitive to ensure we . . . retain valuable employees."
How this move could possibly help retain associates is beyond me. I can understand their thinking that all they needed to do was raise the base, since (they wrongly believed) that's all prospective recruits would see. But to behave as if associates actually receiving this memo are going to buy that this move is a "raise" or makes Heller more "competitive" is insulting.
Current DC-CA List of Shame that someone posted, listed by Vault rankings:
10. Kirkland & Ellis (DC and kinda CA)
11. Covington & Burling (DC and CA)
14. WilmerHale (DC)
16. Sidley Austin (DC and CA)
18. Williams & Connolly (DC)
19. Arnold & Porter (DC and CA)
22. Jones Day (nobody knows what is going on with them)
25. Ropes & Gray (DC and CA)
27. Mayer Brown (DC and CA)
34. Wilson Sonsini (DC and CA)
35. Winston & Strawn (DC)
36. King & Spalding (DC)
40. Baker Botts (DC)
41. Morgan Lewis (DC and CA)
43. Baker McKenzie (DC and CA)
46. Pillsbury Winthrop (DC and CA)
47. McDermott (DC and CA)
48. Jenner (DC)
49. DLA (DC and CA)
50. Fulbright (DC and CA)
52. Munger (CA)
53. Goodwin Proctor (DC and CA)
56. Irell & Manela (CA)
57. Vinson & Elkins (DC)
59. Alston & Bird (DC)
61. Sonnenschein (DC and CA)
62. Heller Ehrman (DC and CA)
64. Holland & Knight (DC and CA)
65. Greenberg Traurig (DC and CA)
66. Bingham (DC and CA)
67. Kaye Scholer (DC and CA)
68. Foley & Lardner (DC and CA)
69. Steptoe & Johnson (DC and CA)
70. Hunton & Williams (DC and CA)
71. Patton Boggs (DC)
72. Perkins Coie (DC and CA)
74. Kirkpatrick & Lockhart (DC and CA)
75. Nixon Peabody (DC and CA)
77. Bryan Cave (DC and CA)
78. Strook (CA)
79. Crowell & Moring (DC)
80. Howrey (DC and CA)
82. Reed Smith (DC and CA)
83. Dorsey & Whitney (DC)
84. Katten Muchin (DC and CA)
9:47, you need to put MoFo back on that list. Their "raise" was a fake-out, like Heller's.
Nick Dierman? Is that you?!
Try Dimitri Korovilas.
orrick is making all the other sf firms look bad. they are definitely the top firm out there now.
Below is the "old" MoFo bonus structure. The "contribution bonus" was done away with last Friday. To summarize, a typical 02 grad under the old system who billed 2100 would get a bonus of $40k, versus $25k under the new system. An average associate that billed 2099 under the old system would get $15k, versus $0 under the new system.
A Contribution Bonus of $5,000-$15,000, depending on class year, will be awarded to associates who progress with their class and meet their minimum billable/pro bono firm legal service hours (Efficient Legal Service Hours2) targets, and payable concurrently with Productivity Bonuses;
· A Productivity Bonus of $15,000-$30,000, depending on class year, will be awarded to those with at least 2100 Efficient Legal Service Hours;
· A “high hours” Productivity Bonus of $10,000-$30,000, depending on class year and total Efficient Legal Service Hours, will be awarded to those with at least 2300 Efficient Legal Service Hours; and
· Merit Bonuses (as awarded to specific individuals through the annual evaluation process) will range from $15,000-$30,000, depending on class year. [Note: Merit Bonuses are awarded to about 20% of associates and are expected to be even more rare this year given the firm's overall approach to the "raise". ]
MoFo merit bonuses - Those are sort of a crock of crap too. Everyone knows they are paid solely to the associates that the partners really like - usually the brown nosers. There are many associates that bill crazy hours but don't get the MoFo merit bonus b/c they aren't connected. But hey, I guess that's what makes the world go round.
As for MoFo and other firms killing the "contribution bonuses" or in other words no bonus until you hit 150 hours over what you agreed to do (roughly 3 weeks of your life) ... at those firms you get less bonus than a secretary, word processor, cleaning lady ......, etc. It is pretty well known that most of the staff at least get a few hundred bucks for Christmas, and secretaries usually get a few grand for their year-end bonus for sitting at their desks all day surfing the web. Funny that they get $3,000 for working MAYBE 4 hours out of an 8 hour day. Meanwhile, we have to give the minimum (1950) + 3 extra weeks of our lives to get a measley $10,000 to $15,000 - pretty crappy. Not to mention many of these secretaries earn $80,000 + per year - not bad for dropping out of high school. Just goes to show, firms have no problem screwing associates - but they will never mess with the secretaries.
So even after screwing their associates with a fake raise, MoFo is still essentially a class level ahead of Heller (at least $10k more at 2100, and probably at least $25k more at 2300).
If someone bills 2300 or more, do they typically get the full $30k from the 2100 bonus in addition to whatever they get at the 2300 level?
Never mind. I didn't read carefully. the spread is over class years, it's not a potential range.
So MoFo associates only make $10k more at each of the 2100 and 2300 levels. Still basically a full class year though.
200K, 2010, Skadden.
the most senior mofo associates (98 and older) get $0 until they hit 2100, and then $30k from 2100-2299? if what others have said about Wilson and Orrick is true, that would mean that many Orrick/Wilson first years get as much or more just for showing up, and even more for hitting 2100. where does Cooley rank?
Pillsbury won't bump anytime soon, believe me.
I'm not sure that the original post, comparing the compensation of a 3rd year at Heller and Orrick, was entirely accurate; I haven't read the Orrick memo, but the Heller memo indicates that there is a also an "Enhanced Bonus" which ranges from $0-$17,500. So, the best-case-scenario at Heller would actually be a bit higher:
Heller = 185,000 + 8,000 + 17,500 = 210,500
Orrick = 185,000 + 45,000 = 230,000
That still makes Orrick a better bet financially, though I imagine that's not the only consideration for potential associates.
I think the post of that person was to compare mandatory, hours-based bonuses. Some firms have "discretionary" additional bonuses. But who knows whether discretion will be exercised in your favor?
Current Chicago list of shame:
Everyone except Skadden, Latham, and Paul Hastings.
8:38, I'm sure Orrick has a discretionary bonus also, so 230,000 is probably low. Most people at Heller aren't getting any enhanced bonus anyway, and those that are are not (typically) getting the high end without billing way more than 2100 hours.
i feel like an idiot for not knowing this, but could someone please explain how the compensation/bonus thing works? i start as a summer at thelen in a week and thelen confirmed that our summer salaries have been raised to meet the most recent 145K raise. does anyone know if thelen pays a bonus on top of the 145 salary? should i be concerned that they are not jumping to 160K?
5:35 - Which planet is your MoFo office on?
Any word on whether Winston and/or Jenner in DC are planning on raising to the NYC 160 scale? I know they haven't yet, but is it a dead deal?
I'm a clerk and will be looking to start Dec/Jan timeframe (2 of 4 clerks work Dec-Dec). I'm looking at Skadden, Jenner, Winston, and A&P. I've heard the horror stories about Skadden and would like to avoid the "sweatshop." I have friends that have worked in both Jenner's and Winston's office in DC and rave about it. I'd like to work for one of the two (especially Winston)- - but the difference in pay over the next 3-5 years (as compared to Skadden) is hard to ignore.
I cannot imagine Jenner or Winston raising in DC and not raising Chicago at the same time. Chicago is Jenner's and Winston's main office and now both already face stiff competition from Latham, Skadden and PH.
Given their DC offices, Jenner and Winston will have to go to 160 (and on up) in Chicago. KE will probably go first though. Then it's anyone's guess as to who will follow - Jenner, Winston, Sidley or Mayer? Who knows, maybe one of these firms will see the writing on the wall and go first. At least it would make summers feel good and probably give a slight boost to September recruiting. It's going to happen - benefit from it right?
I have a hard time believing that Skadden and Jenner attract the same types of people.
Jenner has the best litigation department in Chicago and probably one of the best in the country
Jenner is a great firm, but doesn't it attract pro bono, do well, love the profession types, whereas Skadden is going to attrach more money-grubbing, fuck pro bono, show me more money types.
I'm just glad that Heller may start finally raising Seattle salaries, even if it's not to 160K. Seattle was too far behind the rest of the country.
Yes; Seattle is 30K and 30 years behind the rest of the country.
Morgan Lewis??
It is true that MOFO doesn't pay market because their raise is really a non-raise. It's still a great firm to work for, but as far as compensation goes it is behind Paul Hastings, GD&C, LW, and OMM.
MOFO Current Structure for 1st year associates is as follows:
Hours/$$$
1950/zero =(
2100/$15k
2300/$10k up to $15k (if you bill signif more than 2300)
There's also a $15k merit bonus, which about 25% of the associates get.
LW's 1st year bonuses are:
Hours/$$$
1900/$28k
Bonuses after that are discretionary. Apparently the medium bonus last year before the raise was $42k.
PH bonuses are:
Hours/$$$
2000/$30k
Not sure what bonuses are after that.