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Uh, let me chime in and interrupt the schmucks above. What do y'all think? Interesting move; sorry class of '07.

QUINN is the best!!!!

I <3 Quinn.

Once again, we're moving NY comp into the CA markets. All you other big firms owe us.

I've said it before and I'll say it again, the lowercase reeks (as does Quinn generally) of trying too hard.

Quinn to V10 in place of that other sucka California firm that we won't be hearing from any time soon.

oh lighten up 8:16 - envy is so unbecoming

8:14 - Why "sorry class of '07"? Nobody else, including Cravath, is paying a special bonus to kids right out of school.

Quinn seems to slowly be taking over the world.

i would love to have been at the meeting that worked that payment scheme/schedule out.

Bifurcating the bonus is a smart idea that most firms will (or at least should) follow to safeguard against the January Jump (TM --> me). Love the fat $$$, well done QE.

This is essentially the same bonus as other firms when accounting for time value of money.

Nothing special.

827, what is it you think 816 is envious of? Your substandard bonus? Your crappy subway ride? The terrible weather? Your 800 sq ft apartment?

Truck driver? I ain't no truck driver. I'm a lawyer. That's right, baby, I just bought this truck straight cash. Now I got enough cigarettes to last me and my family for the rest of our lives. I'M RICH B*-ATCH.

Actually, no, it's still several thousand more even when taking time value of money into account.

given that quinn's supposed competitors (OMM, LW, GDC) will likely not pay any special bonus in November (or December, or January, or February . . . ) I'd be pretty happy with this announcement if I was a quinn associate. More money total, and even given the 6 month delay, a pretty good deal. Should be interesting to see how california shakes out. I'm not optimistic.

would you rather have the extra 5K with the bonus paid later or have what is becoming the "normal" special bonus? I guess if you invested really well and were a senior associate it might be better to have the money now. Junior associates, it would seem, are better off with the extra 5K and later bonus.

8:34(2) is right re: time value of money.

For 8:33(2) to be right, interest rates would have to be a lot higher than they are now. June 2008 is less than half a year away.

Why cut the special bonus in half? I thought year end bonuses were compensation for past performance. Sounds like a way of managing cash flow more than anything else.

Quinn still rocks, but I don't see how this really helps them.

Let's not forget the tax benefits of bifurcating the bonus to a new tax year...

It is an interesting take from QE and I applaud their attempt to avoid lateral losses come January. But it's still kind of a crappy move. Holding off on the $7.5K until next June? It smells of a 2nd tier firm that won't accept it's second tier status, which normally I don't associate with QE. I'd much more expect some sort of half-assed move from one of the big West Coast firms (GDC, Latham, OMM)--but only in their NYC offices, of course. The rest of their offices would surely be SOL (which really makes one wonder why they'd work at Latham as opposed to STB, Davis Polk or other NYC firms that raise at all offices)

So long as QE keeps up with the probable salary bump in January, they're probably just going to be out another $5K, though it will of course be less than that in true value given the time lapse. They'll likely, just fall back into line next year.

All around, strange move by QE. It isn't a big enough difference to set them a class above, but just generally makes them appear unnecessarily odd. But I suppose that is par for the course at QE.

I think this is a pretty savvy move that will actually help with retention. It becomes much harder to leave if your next bonus is, reletively speaking, right around the corner. Well played again qe. Well played.

833, not even close. Your assertion is absurd. Since math isn't your strong suit, consider whether you would trade $2,500 now for $7,500 in six months. No brainer.

And "Richer" just what are those tax benefits? Seriously, you kids take a tax class or two and figure you're a personal finance whiz and tax lawyer.

8:42 - please explain. Why is the choice between $2500 now or $7500 in 6 months? Why 3x more later? That doesn't appear to be situation. tyia

This way people won't quit shortly after the bonus because they'll be waiting around for the June one...then once that one hits they'll wait around for Dec...etc.

838, what's the tax benefit?

I would think the temptation to pad hours must be pretty strong at firms that have billable requirements tied to bonuses (like QE), even though 1900 isn't very high by NYC standards.

And adding the mid-year payment tied to billables creates another opportunity for the little worker bees to pad their hours. Which of course probably adds up to more money for QE partners, so I guess that works for everybody (except for the defrauded clients).

Simple: individuals are cash-basis accounting for tax purposes- you're taxed the year you receive it.

By splitting the bonus up into two tax years (especially with the general impression being that 2008 will not be so kind come bonus season), Quinn is spreading the tax burden around, and, quite possibly, keeping some of its employees in a lower bracket for tax year 2007.

Let me add to the chorus of I'M RICH B*TCH.

I agree this likely will pan out to be a good deal for qe's CA associates relative to its "peer" CA-based firms. I also agree this at least marginally increases the likelihood that associates will hang around to collect the second part of the bonus. But, time value of money aside, I'd rather have a bonus tied to my efforts and the firm's performance in 2007 paid at or around year's end. The delayed payout, notwithstanding the extra 5K, just feels ungenerous.

At least Quinn does this firmwide, including the NY office. Dewey and their utterly pathetic peer firms could learn a few fucking lessons from Quinn.

i like your spirit 8:50. and, while not at dewey, i certainly feel your pain and resentment.

849:
I would gladly exchange the $375 (5% marginal tax rate difference X $7,500) to have the money now. But I'm not complaining. I'm rich, b*.

8:49
I think the real win for QE is that their lawyers know they'll do the right thing (or at least have demonstrated a propensity to do the right thing). That's a good reason to stick around, other QE issues notwithstanding.

i would love to work for a firm that doesn't use capital letters. i'm totally serious. awesome.

i don't care if they use wingdings. as long as the message translates to "you get PAID."

Skadden? [*crickets*]

S&C? [*crickets*] [*echos*]

don't forget the tumbleweed . . .

Anything that adds distinction and diversity to the legal market's compensation is a plus in my book.

Man, you guys are such suckers. Just because Lat sucks up to Quinn, does not mean you have to. The reason for the splitting the special bonus is not to be nice or help associate manage taxes, you morons. It is to give Quinn associates a financial incentive to stay at the firm, so the firm can guard against departures. Fine for the firm, but the result is a below market bonus. And don't tell me about the extra $5K. For this year, Quinn's aggregate bonus is below market, and for next year it probably will be too, unless Quinn decides next year to pay it all in December.

2007 shouldn't get a bonus. For what? Attending training sessions, watching sexual harrassment videos, going to first year retreats and messing up assignments the more senior associates have to fix?

9:05,

I think all the NY firms will use your exact argument to defend why they won't raise above the 35K + 10K scale to some new bifurcated "Quinn" scale.

I don't see why anyone would stick around six months for half of the special bonus. You'd make the same amount by February anyway, so with that logic, why would anyone ever quit?

Pretty much everyone I know who's left a firm has taken some sort of pay cut, so the money isn't the reason people leave.

California to 180!

enough with the bonuses--let's get something that's not "special" but going to last from year to year. Raise the base

NYC Bonus List of Shame

2008 Vault Rank / Firm / 2005 RPL (if known)
1
2
3 Sullivan & Cromwell LLP / $1,627,000
4 Skadden, Arps, Slate, Meagher & Flom / $997,000
5
6
7
8 Latham & Watkins LLP / $875,000
9 Weil, Gotshal & Manges LLP / $954,000
10 Covington & Burling LLP / $774,000
* 11 Kirkland & Ellis LLP / $987,000 (Punted)
12
13
14
15 Wilmer Cutler / 846,000
16 Williams & Connolly LLP /
17 Sidley Austin LLP / $774,000
18 Gibson, Dunn & Crutcher LLP / $1,011,000
19 O'Melveny & Myers LLP / $828,000
20 White & Case LLP / $600,000
21 Arnold & Porter LLP / $816,000
22 Jones Day / 602,000
23 Morrison & Foerster LLP / $735,000
24
25 Clifford Chance LLP /
26 Cadwalader, Wickersham & Taft / $940,000
27 Hogan & Hartson LLP / $735,000
28 Mayer, Brown, Rowe & Maw LLP / $750,000
29 Fried, Frank, / $891,000
30 Ropes & Gray LLP / 841,000
31 Paul, Hastings, Janofsky & Walker / $766,000
32
33 Akin Gump Strauss Hauer & Feld LLP / $779,000
34 Winston & Strawn LLP / $718,000
35
36 Wilson Sonsini Goodrich & Rosati / $752,000
37 Linklaters /
38 Orrick, Herrington & Sutcliffe / 767,000
39 Freshfields Bruckhaus Deringer LLP /
40 Proskauer Rose LLP / $745,000
...
...
43. (Quinn Matched)
55. (Cahill Matched)
NR. McKee Nelson (Failed to Match)

Latham (crickets, echo, tumbleweed followed by below-market bonus in non-NYC offices with car crash)

Rank 2006 in revenue
by revenue Revenue per lawyer
per lawyer Firm Per Lawyer from 2005
-------------------------------------------------------------------------------
1 Wachtell ABOVE MARKET $2,455,000 2.5%
-------------------------------------------------------------------------------
2 Sullivan & Cromwell $1,565,000 1.3%
-------------------------------------------------------------------------------
3 Wiley Rein $1,520,000 162.1%
-------------------------------------------------------------------------------
4 Cravath MARKET $1,355,000 5.9%
-------------------------------------------------------------------------------
5 Davis Polk MARKET $1,200,000 4.8%
-------------------------------------------------------------------------------
5 Simpson Thacher-MARKET $1,200,000 6.7%
-------------------------------------------------------------------------------
7 McKee Nelson $1,190,000 1.7% BELOW MARKET
-------------------------------------------------------------------------------
8 Milbank, Tweed MARKET $1,110,000 10.4%
-------------------------------------------------------------------------------
9 Skadden $1,095,000 10.1%
-------------------------------------------------------------------------------
10 Cahill Gordon MARKET $1,075,000 8.6%
-------------------------------------------------------------------------------
11 Fragomen, Del Rey $1,070,000 26.6%
-------------------------------------------------------------------------------
12 Gibson, Dunn $1,050,000 4.0%
-------------------------------------------------------------------------------
12 Irell & Manella $1,050,000 9.9%
-------------------------------------------------------------------------------
14 Kirkland & Ellis PUNTED $1,035,000 5.1%
-------------------------------------------------------------------------------
14 Paul, Weiss MARKET $1,035,000 0.5%
-------------------------------------------------------------------------------
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 $1,000,000 6.4%
-------------------------------------------------------------------------------
21 Boies, Schiller $980,000 3.2%
-------------------------------------------------------------------------------
21 Weil, Gotshal $980,000 2.6%
-------------------------------------------------------------------------------
23 Cleary Gottlieb MARKET $975,000 7.1%
-------------------------------------------------------------------------------
24 Willkie Farr MARKET $970,000 12.8%
-------------------------------------------------------------------------------
25 Williams & Connolly $955,000 2.7%
-------------------------------------------------------------------------------
26 Finnegan, Henderson $945,000 11.2%
-------------------------------------------------------------------------------
27 Townsend and Townsend $940,000 6.2%
-------------------------------------------------------------------------------
28 Fried, Frank $930,000 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 $875,000 12.9%
-------------------------------------------------------------------------------
33 Kaye Scholer $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 $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)

you think we'll really get a car wash?? that's not so bad then . . .

someone must have a subscription to AM 100. Let's get 2006 RPL up.

At this rate Fragomen, Del Rey will match before Latham matches.

S&C matched and then some for senior associates

skadden & sullcrom will obviously both match. but if they do ONLY that (as opposed to re-upping or raising base), then it's fair to wonder what the fuck took them so long

Any news that puts pressure on the big 3 not to pay lower bonuses to the LA markets is good news. Thanks QE.

Also -- some people who were thinking of moving will stick around for the extra 10K in June because of the feeling that you must get what you are "owed." If they want to leave they should anyway, but the psychological satisfaction of getting what you are owed will keep a couple of people at QE.

I need a DCF analysis right quick to assess present day value.

um, big 3? i can't be sure, but it sounds like you're talking about the cali firms. nothing about cali law is big

There is no measurable tax benefit, though I am duly impressed by the use of "cash based accounting" in this context. Unless you're trying to game federal withholding (which you shouldn't) you're going to "pay" tax on receipt no matter your "method of accounting." And the lower tax bracket argument is empty. Okay, maybe a few thousand dollars will move your effective tax rate needle - but not much. Considering time value of money, and risk of tax increases, who cares? And considering the fact that most will still be paying FICA in June, the time value of money argument is bolster (if it is worth anything to begin with). All in, if you're really as "rich" as you suggest, you're likely to spend more than these "tax savings" this Saturday night. Assuming, of course, you have a life outside of your office.

PWN3D!!!!!!!!!

FIRST!!!!!!!!

SNAKES!!!!!!!!!

This almost makes up for that extra 500 hours a year Quinn associates are billing.

can some asswipe pls post the PPP of say, skadden, per year over the past 10?

thanks bitches

This stinks. Any firm that "matches" the bonus, but makes it contingent on hours billed is not really matching. I practice at a pure lockstep firm. That means we get the market rate compensation and bonuses (already announced we're matching the November and YE bonuses), but it's not dependent on the hours we bill. Now THAT's something to be excited about.

"but makes it contingent on hours billed is not really matching"

Do you REALLY think that anyone at Quinn is coming in at under 1900 hours?

I can't believe King & Spalding hasn't announced yet.

this is a Third Tier Toliet move. the 5k extra is just to disguise that.

Making both halves conditioned on a 1900 hour pace is a recipe to screw associates. . . Quinn is a trial firm. There will be months when associates bill at a 2800 hour pace, and months when they are slow as muck. There are going to be tons of associates who bill 2300 hours and get only half a bonus.

11:50 - how do you figure there would be "tons of associates" who bill 2300 and only get half the bonuse?

associates will only have to bill 950 hours Jan through June to get the bonus. that's less than 160 a month. QE has more than enough work, and that's a very easy average to reach.

this makes good business sense for QE

lol why is 9:51 such an ass with no provocation.

What a QE troll frenzy. Why are associates excited about the prospect of not getting paid half of a (supposedly) already earned bonus for another 8 months? I thought you were supposed to be smart. . .

Wal-Mart GC to free nametags and blue vests!!!

All LA firms to bifricated bonuses!!!

why has john quinn stolen my (poor) writing style!

what kind of ee cumstain weirdness is the no caps? dat some kind of californy thing?

Lat,
Please do a post about how New Jersey "big" firms pay disgustingly low salaries and effectively no bonuses (i.e. for 2200 hours you get like 5k) and how no one with the ability to work in NY would work in NJ for what is really now about 1/2 pay. NJ firms need to increase pay and bonuses by tens of thousands of dollars and lower the hours minimum or face an exodus in light of the NY salary increases.

quinn tries so hard to be special and unique. it's cute.

If he is too cool to capitalize, then why capitalize the months? Clearly he has a shift key. Either use it or don't.

It's like he's aching to be a rebel, but instead he's just another middle-aged rich prick who has the guts only to be different in the most meaningless ways.

Real rebel -- not capitalizing the first word in sentences. What's next -- refusal to use a semi-colon. What a dork.

i'd gladly take all of your criticism of john quinn's capitalization and punctuation in exchange for his money and your envy of it.

i bet he actually types with normal caps and punctuation, and then hires a team of editors to modify his writing to give it his signature style. he can afford it. maybe he even hired a couple trolls to come to ATL and whine about his punctuation, just to draw more attention to his glory. he can afford you too.

The key phrase that everyone seems to be missing is "these are benchmark amounts which are subject to adjustment (up or down) to reflect individual performance."

To an outside observer, this may seem (as it is implied) that these benchmarks correspond to billing 1900 hours. However, those of us at QE know that not to be true. In reality, MOST associates will get BELOW these "benchmarks." This email was written for ATL.

It may be a good thing for the associates in Cali, but this is further evidence that QE is BELOW MARKET IN NEW YORK. Simple as that.

PPP were top 10 last year, and likely to be top 5 this year. But, QE remains CHEAP. Law students and potential laterals, take note.

11:07, how many hours do you think a QE associate has to bill to get the benchmark bonus?

11:10 - at least 2100. Based on comments at the "rookie school" in New York, *maybe* as much as 2300.

Since you're saying QE is way below market, does that mean there are lots of associates who aren't hitting this benchmark? My impression of QE in San Francisco, and especially in Redwood Shores, was that 2100 was on the very low end. It's always "sweatshop this" and "sweatshop that" and "bill bill bill" from everyone I talk to, but that's all at least second hand. I never talk to anyone who works there, which I assumed was because they weren't allowed out.

If I could work for QE, wear jeans, avoid capital letters, bill 2000, and still get a bonus (even one below NYC market, but probably still ahead of most Cali firms), that would be a hell of a deal.

Maybe it's time to call that hyper-aggressive QE recruiter back after all.

I think the email only implies that 1900 is the benchmark for "good standing" to receive the special bonus, not the full bonus.

11:43 - put down the phone. No one who bills only 2000 in the NY office is getting the full "special bonus." All the talk about 1900 hours is geared to either to the LA office or specifically for ATL, as 11:07 said.

QE (at least in NYC) is a sweatshop. 2000 a year is underperforming - 1900 will get you a stern talking to from the partnership.

QE Escapee just said that I can move to L.A., bill between 1900-2000 hours, get N.Y. salary, and N.Y. bonus. For that kind of deal, moving to L.A. might be worth it. Is that option available in S.F. too? Who needs Manhattan?!

And on top of all that wealthy goodness, I'd get to stop using capital letters. sign me up. all that time spent hitting the shift key can now be put to better, billable uses (not that I'll care about my billables in happy west coast quinn land).

Or this email is all propaganda, and QE assumed they might get away with it since none of their associates have time to read message boards and refute it. But I like the happy version better.

How come you idiots can't understand the simplest of personal income tax issues? There's no benefit to pushing that income into next year; it is marginal income and we are all in the highest tax bracket. When you consider the time value of money (here, $50 or so), you're certainly better off getting paid now as opposed to next June.

1900 will get you more than stern talking to. 1900 will probably get you demoted to staff attorney.

john quinn is no e.e. cummings.

This is much worse tax-wise. If the entire bonus is in December than you get back the excess withholding on it next April (5 months or so) when you file your taxes. You have to wait 10 months to get the excess withholding back from the bonus paid next June.

A person can always adjust their paycheck withholding slightly to allow for this excess withholding from the bonus, but few will be able to properly calculate that adjustment without the fear exposing themselves to penalties.

11:36 - not smart rookie. pay better attention bonus kicks in at market. last year it was at 2000 - where it has been suggested it will remain - for ALL OFFICES, the year before it was 2100. bonus has never been at 2300. at those numbers, your bonus keeps increasing...

Odd that this is being treated as such a big deal. Irell & Manella has been giving out these "special" bonuses on top of the regular bonus for at least the past four years. Its not as good as the not so distant days when Irell had profit sharing for associates (which is rumored to be making a come back), but it still regularly beats the LA market by a mile.

Quinn has profit sharing too. Usually between 3-5% of your total compensation (salary + bonus) for the year.