Associate Bonus Watch: Covington & Burling (New York)
It's good to be an associate at Covington & Burling these days.
There's the cleaned-up Wikipedia entry. There are, for New York associates, spiffy new offices in the Renzo Piano-designed New York Times building. One Covington associate describes the new digs as "spectacular," with views of the Statue of Liberty, George Washington Bridge, and Empire State Building. "They are a bit cold and impersonal, but we are a law firm, after all."
Also for New York associates: special bonuses. Check out the Covington (New York) bonus memo, after the jump.
COVINGTON & BURLING -- 2007 ASSOCIATE BONUS MEMO (NEW YORK)
Memorandum to New York Associates
We are pleased to announce a one-time special bonus for our New York associates for 2007. The special bonus will be in addition to our annual bonus and will be on the following scale:
Class of 2007 -- N/A (year-end bonus only)
Class of 2006 -- $10,000
Class of 2005 -- $15,000
Class of 2004 -- $20,000
Class of 2003 -- $30,000
Class of 2002 -- $40,000
Class of 2001 and prior -- $50,000
The special bonus will be awarded in accordance with our usual bonus policies, and will be paid in December. This special bonus reflects the Firm's general practice that it will be competitive in associate compensation in each of the cities where we operate.
Thank you for your hard work and many contributions to the firm.
The Management Committee
Covington & Burling, a Pfizer law firm, caught cleaning up its reputation on Wikipedia [BrandweekNRX]
(57) Comments
First
Holy crap - WilmerHale NYC, where are you now!?
Third!
More like nice views of Jersey City...
I'm feeling very Firsty!
Is Proskeaur gonna match?
Let the weeping begin in the nation's capital.
And...Fourth! (that IS fun)
Covington visitor - only on the west side. South and east are amazing.
NYC Bonus List of Shame
2008 Vault Rank / Firm / 2006 RPL
1
2
3
4
5
6
7
8 Latham & Watkins LLP / $920,000
9
10
* 11 Kirkland & Ellis LLP / $1,035,000(Punted)
12
13
14
15 Wilmer Cutler / $890,000
16 Williams & Connolly LLP / $955,000
17
18 Gibson, Dunn & Crutcher LLP / $1,050,000
19 O'Melveny & Myers LLP
20
21 Arnold & Porter LLP / $855,000
22 Jones Day
23 Morrison & Foerster LLP
24
25
26 Cadwalader, Wickersham & Taft / $1,000,000
27 Hogan & Hartson LLP
28 Mayer, Brown, Rowe & Maw LLP
29
30 Ropes & Gray LLP / $855,000
31 Paul, Hastings, Janofsky & Walker
32
33 Akin Gump Strauss Hauer & Feld LLP / $840,000
34 Winston & Strawn LLP
35
36 Wilson Sonsini Goodrich & Rosati
37 Linklaters
38 Orrick, Herrington & Sutcliffe
39 Freshfields Bruckhaus Deringer LLP
40 Proskauer Rose LLP
41. King and Spalding
* 42. Morgan, Lewis & Bockius (Punted)
43.
44. Baker & McKenzie
45. Baker Botts LLP
46. Boies, Schiller & Flexner LLP / $980,000
47. Munger, Tolles & Olson LLP / $1,025,000
48. Dechert LLP
49. Irell & Manella LLP / $1,050,000
* 50. McDermott, Will & Emery / $875,000 (Punted)
51. Jenner & Block LLP
52.
53. Allen & Overy LLP
54. DLA Piper
55.
56. Fish & Richardson P.C.
57. Fulbright & Jaworski LLP
58. Pillsbury Winthrop Shaw Pittman LLP
59. Goodwin Procter LLP
60. Cooley Godward LLP
...
67. (Kaye Scholer Matched w/ Performance Reqs.)
92. (Kramer Levin Matched w/ Perf. Reqs.)
NR. McKee Nelson (Failed to Match)
why'd you skip 60-66?
BONUS STATUS BY 2006 RPL
Rank 2006 in revenue
by revenue Revenue per lawyer
-------------------------------------------------------------------------------
1 Wachtell ABOVE MARKET $2,455,000 2.5%
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2 Sullivan & Cromwell MARKET & ABOVE MARKET FOR SENIOR ASSOC. $1,565,000 1.3%
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3 Wiley Rein $1,520,000 162.1%
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4 Cravath MARKET $1,355,000 5.9%
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5 Davis Polk MARKET $1,200,000 4.8%
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5 Simpson Thacher-MARKET $1,200,000 6.7%
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7 McKee Nelson BELOW MARKET $1,190,000 1.7%
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8 Milbank, Tweed MARKET $1,110,000 10.4%
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9 Skadden MARKET $1,095,000 10.1%
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10 Cahill Gordon MARKET $1,075,000 8.6%
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11 Fragomen, Del Rey $1,070,000 26.6%
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12 Gibson, Dunn $1,050,000 4.0%
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12 Irell & Manella $1,050,000 9.9%
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14 Kirkland & Ellis PUNTED $1,035,000 5.1%
-------------------------------------------------------------------------------
14 Paul, Weiss MARKET $1,035,000 0.5%
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16 Munger, Tolles $1,025,000 18.5%
-------------------------------------------------------------------------------
17 Quinn Emanuel $1,020,000 28.3% SLIGHTLY ABOVE MARKET BUT PARTIALLY DEFERRED
-------------------------------------------------------------------------------
18 Shearman & Sterling MARKET $1,010,000 2.0%
-------------------------------------------------------------------------------
19 Debevoise & Plimpton MARKET $1,005,000 8.6%
-------------------------------------------------------------------------------
20 Cadwalader BONUS ANNOUNCED, NO $ FIGURES $1,000,000 6.4%
-------------------------------------------------------------------------------
21 Boies, Schiller $980,000 3.2%
-------------------------------------------------------------------------------
21 Weil, Gotshal MARKET $980,000 2.6%
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23 Cleary Gottlieb MARKET $975,000 7.1%
-------------------------------------------------------------------------------
24 Willkie Farr MARKET $970,000 12.8%
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25 Williams & Connolly $955,000 2.7%
-------------------------------------------------------------------------------
26 Finnegan, Henderson $945,000 11.2%
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27 Townsend and Townsend $940,000 6.2%
-------------------------------------------------------------------------------
28 Fried, Frank $930,000 MARKET 4.5%
-------------------------------------------------------------------------------
29 Schulte Roth $925,000 6.9%
-------------------------------------------------------------------------------
30 Latham & Watkins $920,000 5.1%
-------------------------------------------------------------------------------
31 Wilmer Cutler $890,000 5.3%
-------------------------------------------------------------------------------
32 McDermott Will PUNTED $875,000 12.9%
-------------------------------------------------------------------------------
33 Kaye Scholer MARKET WITH POSSIBILITY OF MORE & PERF. REQS. $865,000 7.5%
-------------------------------------------------------------------------------
34 Arnold & Porter $855,000 4.9%
-------------------------------------------------------------------------------
34 Ropes & Gray $855,000 1.8%
-------------------------------------------------------------------------------
36 Choate, Hall $850,000 10.4%
-------------------------------------------------------------------------------
36 Kramer Levin MARKET W/ PERF. REQS. $850,000 6.3%
-------------------------------------------------------------------------------
38 Heller Ehrman $845,000 5.0%
-------------------------------------------------------------------------------
39 Akin Gump $840,000 7.7%
-------------------------------------------------------------------------------
40 Hughes Hubbard $835,000 12.1%
Not listed: Dewey (Market with hours requirement)
Clifford Chance (Market)
White & Case (Market)
Morgan Lewis (Punted)
Covington (Special Bonus - Regular Bonus not yet announced)
Sidley (Special Bonus - Regular Bonus not yet announced)
whats a link so i can see what my firm's rpl is?
Bonus List of Shame
by NY Attorneys (Source: Crains)
1)
2)
3)
4)
5)
6)
7)
8)
9)
10) Proskauer
11)
12)
13)
14)
15) Schulte
16) Wilson Elser
17)
18)
19) Latham & Watkins
20)
21)
22)
23)
24)
25) Greenberg Taurig
Proskauer should be ashamed of themselves at this point. Same goes for Schulte.
Sidley + Covington going New York only = HAHAHAHAH for all non-NYC Latham, Gibson, O'Melveny, MoFo, Wiley Rein, WilmerHale, and (possibly) Kirkland associates.
where are schulte, proskauer, stroock, greenberg and akin? will those firm match or just kiss recruiting goodbye?
Isn't this a coat factory?
Sidley, Kirland, Mayer, McDermott, Latham of CHICAGO - where are you?
Its a foregone conclusion now that Wilmer, Latham and other non-NY based firms will match the special bonus in NYC, but not in their other offices. Sorry Chicago, LA, DC....
not affiliated with burlington industries
wasn't it the case that NYC and other cities were on different pay scales this time last year? why is it such a big deal if we go back to that?
Schulte won't match because their bonus structure already maxes out at 50K for for first years.....
their tiered system goes liek this:
10K bonus - 1900 hrs
30K - 2100
45 K - 2300
50K - 2500
or something like that....
Schulte won't match because their bonus structure already maxes out at 50K for for first years.....
their tiered system goes liek this:
10K bonus - 1900 hrs
30K - 2100
45 K - 2300
50K - 2500
or something like that....
11:38...
Because that would be SO UNFAIR!!! >
11:41 - Agreed. Also, I doubt that Schulte will anounce their bonuses this early since they still have a month and a half left in the year and due to their tiered system based on hours, probably doesn't have a definitive picture of what the final breakdown will be for hours. Just a guess though. In any event, why do people (or more likely one person) keep posting asking about Schulte? ATL has been posting bonus announcements the minute they come in. I don't think it's really necessary to continually ask for updates in the comments section. When SRZ announces, I'm sure it'll be posted on the front page.
several NY firms have also matched for their DC associates, e.g., Cleary.
separates the wheat from the chaff in DC. see you later, covington.
So Finnegan's revenue per lawyer is approaching $1mil and they have a terrible bonus structure with no transparency. Glad I chose this place.
Stroock will never match. But rumor has it that we're finally getting blackberries that aren't from 2003. I wasn't aware that they were now in color!! Awesome!
What about DC associates at Cov?
This must feel like a smack in the face with a hot strip of Peter Lugars bacon.
the times building is nice and all but that location is horrendous - shitloads of annoying tourists, no good lunch places, porn shops, shady people hanging out around Port Authority and one unbelieveably odorous homeless man who stinks up the entire adjacent street. should've stayed at 54th and 6th.
What about schulte?
Correction on the Schulte bonus structure for first years (at least for 2006):
<2000 - $10k
2000 - $35k (or market)
2300 - additional $10k
2500 - another additional $10k
No reason why they can't or won't match, the regular and special bonus; although they could consider getting rid of the 2300/2500 bonuses.
how can Covington justify a special bonus to NYC associates only when it has 300+ attornies in DC and only 100 in NYC? The DC office must produce the majority of its income as a firm...and everyone is supposed to work the same number of hours...but only NY associates get a special bonus??? that so clearly says "we don't really give a shit about you, we just want to pay the least we can get away with without being described as offering less than market compensation." totally f*cked.
So in DC there appear to be firms, those based in NY, which match the bonus structure in NY (Skadden, Sullivan, Cleary Wilkie immediately come to mind) while there are other firms which have announced raises in NY only, suggesting that the DC bonus will be different (Sidley, Covington).
The question I have is what will "market" be in DC?
Will proskeur or schulte match?
12:34 -- Or, it says "We recognize that to compete for talent in NYC we have to pay the going rate for top talent, which includes a "special bonus" but that in DC, which is flooded with lots of lawyers, "special bonus" payments are not market." Don't think you need to read Covington's decision as an insult to DC lawyers; it simply reflects the reality of the markets.
I think the non-NY firms will eventually reconsider and offer the special bonus in non-NY offices.
12:46 -- no way. there is absolutely no basis to suggest that NY associates at top firms are any more "talented" than DC, SF, LA associates at the same exact firm, especially when they all make the same base salary. and are you really tryng to say NY is NOT flooded with lots of lawyers?? gimme a break.
12:46 -- I'm not suggesting the lawyers in NYC are more talented, dumbass. I'm saying that in NYC there is a great demand for top lawyers and the supply is more limited than in other cities, relative to the deman, so there is a need to pay more. Unlike in DC, there are actually other jobs that pay very well in NYC besides being at a law firm -- maybe you've heard of Wall Street -- so firms have to compete with them to keep top students and associates in the legal profession. And NYC costs a lot to live in and can be a real downer at times, thus making it less attractive to some. Thus, NYC law firms have to pay more to attract and keep top associates than other cities can pay less to attract and keep top talent. This explains why most firms based outside of NYC do not feel the need to pay the special bonus -- because they don't have to.
1:03 -- I think 12:46 is merely trying to point out to you that supply and demand determine market wages.
The supply and demand in New York are not the same as supply and demand in D.C.
I think the non-NY firms will eventually reconsider and offer the special bonus in non-NY offices.
Posted by: Anonymous | November 14, 2007 12:51 PM
_________________________________
I believe in Santa Claus too, 12:51.
People who are currenty at DC firms took those jobs when the base was less than NY. Those ass clowns knew what they were signing up for - Why are you now shocked that after a year of parity with NY you are now behind again. THIS IS WHAT YOU SIGNED UP FOR.
Clifford Chance gave DC bonus as well...Step your game up Non-NY firms!!!
People in NY need to realize that it's generally harder to get a top job in DC (W&C, Wilmer, Covington, Gibson, etc.) or LA (Munger, Irell, and to a lesser extent Latham, Gibson, & OMM) than in NY. Look at any decent school's placement stats and you will see that a top job in DC or LA requires a hire GPA than getting a V5 or V10 firm in NYC.
Thus, for people in NY to insinuate that people in other markets are somehow inferior is absolutely incorrect. NY, in fact, is less selective.
That does not necessarily mean people in DC or LA deserve the same pay as people in NY. It is simply to say that if people in NY get paid more, it is clearly not because they are more talented or more intelligent.
Hire = higher.
*dodges incoming flames*
1:11 -- i have heard of wall street! isnt that where they have great night clubs and tapas bars?
Do DC associates in DC-based firms even receive the standard bonus, or it something less than that?
2:49
No we don't
The notion that supply and demand of attorneys in New York and DC justifies lack of parity in bonuses is simply idiotic. This argument might (and I repeat, might) work to justify lack of parity in base salaries. But bonuses are intended to reward performance. If DC, LA, Chicago, SF associates are subject to the same hourly and quality of work requirements as NY associates, and meet these requirements, it makes no sense to reward NY associates more for the same level of effort (again, base salaries are different).
It is true that NY associates' billing rates may be higher than their peers in other offices. This reflects the firm's higher cost of doing business in NYC. Unless someone can tell me otherwise (this is a call to those senior lawyers and partners on ATL), I can only conclude that a firm's profit from associates in non-NYC offices is, at least, the same as from associates in NYC offices. Because bonus is, at least theoretically, suppose to compensate for contributions to the firm's bottom line, there should be parity of bonuses.
UM, cost of living in NY is markedly higher in NY than in D.C. It's ridiculous that the salaries are the same for both cities, anwyay. The bonus is nothing more than a cost of living adjustment. This DC outrage defies logic.
3:50
All very good, but base salaries are NOT different. They are the same. So, the bonus is different.
And as someone pointed out, the NY bonus has traditionally been higher thatn everywhere else (even in the days of $125K). So this is "market practice". What is anyone surprised?
3:50
All very good, but base salaries are NOT different. They are the same. So, the bonus is different.
And as someone pointed out, the NY bonus has traditionally been higher thatn everywhere else (even in the days of $125K). So this is "market practice". What is anyone surprised?
I don't know whether it's supply and demand or something else, but NY is a different market than D.C. In NY the standard is lockstep pay, lockstep bonus. In DC it's lockstep pay, bonuses not so much. So Covington has to match NY or else its NY associates feel screwed. It doesn't have to match in DC because, well, there's nothing to match in DC. Unless for some reason DC firms start giving out this special bonus, that is.
Latham where are you?
3:53 ... if a bonus is nothing more than a cost-of-living adjustment, it would not be a bonus at all. It would be something that you should have received as part of your base salary.
4:25 ... base salaries should, in my view, take into consideration factors like cost-of-living, experience, and the local market for talent. For some reason, firms in DC saw fit to equate base salaries in NY and DC. But bonus is a different creature. Try to convince a non-NYC ibanker that brings in the same number and size deals with the same profit on each deal as a NYC peer that his NYC peer's bonus should be higher than his (or hers) simply because that peer lives in NYC. Sorry ... logic dictates that this non-NYC banker is going to take his (or her) business down the road to another ibank for equitable treatment.
I still say that if the margin on NYC and non-NYC associates is the same, the hours are the same, and the quality of the work is the same, they should get the same bonus. It defies logic that what is suppose to be a performance-based incentive would be tied to geography, not actual performance!
"It defies logic that what is suppose to be a performance-based incentive would be tied to geography, not actual performance"
The flaw in your argument is that a law firm year-end bonus is not necessarily "suppose [sic] to be a performance-based incentive," especially in NY, where, as has been pointed out, the standard is lockstep bonuses.
To put it another way -- there's no way in hell that every single associate in every single law firm in NYC has turned in a performance that earns them precisely the same bonus as every other person in their class. Performance differs from person to person, and law firm bonuses, esp. in NYC, emphatically do not reflect that.
So your "logic" is not backed up by the facts. Hopefully you're not an economist by nature, or else you're going to have quite a tough time dealing with this inconvenience, which assuredly will recur several times throughout your career.
I work at one of these heavily discussed firms in DC and the firm's position is that this is strictly a market issue and has nothing to do with cost of living adjustments or the "quality of talent". The question is what a firm has to do in a particular locale to be "at market" and nothing more complicated.