Associate Bonus Watch: Some Updates
We don't really have any major bonus news to pass along. Here are a few items following up on previously reported developments:
1. Latham & Watkins: On Friday we reported on the LW bonuses, which were well-received by associates. We now have more detailed information, which appears after the jump.
2. McDermott Will & Emery: We wrote here about their decision to issue supplemental bonuses. Those bonuses have now been paid, and people are happy. More details after the jump.
3. Cadwalader, Wickersham & Taft: As previously reported, the bonus situation over there is rather vague. An addendum, also after the jump.
1. Latham & Watkins
2007 Bonuses
Class Base Median Average Top
1999 $50,000 $92,500 $95,209 $125,000
2000 $50,000 $90,500 $88,301 $133,500
2001 $50,000 $72,500 $75,149 $120,500
2002 $47,500 $63,500 $68,804 $102,500
2003 $45,500 $57,000 $56,985 $90,000
2004 $42,500 $50,000 $52,172 $78,500
2005 $40,000 $42,500 $43,453 $69,000
2006 $35,000 $37,500 $38,850 $63,500
Distribution of 2007 Bonuses
LoRange HiRange 1999 2000 2001 2002 2003 2004 2005 2006 Total
$130,000 $135,000 - 2 - - - - - - 2
$125,000 $129,999 1 - - - - - - - 1
$120,000 $124,999 4 1 1 - - - - - 6
$115,000 $119,999 4 5 2 - - - - - 11
$110,000 $114,999 4 5 3 - - - - - 12
$105,000 $109,999 - 3 2 - - - - - 5
$100,000 $104,999 2 2 1 2 - - - - 7
$95,000 $99,999 3 10 9 7 - - - - 29
$90,000 $94,999 2 7 1 2 1 - - - 13
$85,000 $89,999 1 4 4 1 2 - - - 12
$80,000 $84,999 11 5 4 7 3 - - - 30
$75,000 $79,999 - 6 8 3 1 2 - - 20
$70,000 $74,999 1 5 10 3 13 8 - - 40
$65,000 $69,999 1 2 6 3 4 10 1 - 27
$60,000 $64,999 2 5 12 9 6 1 5 1 41
$55,000 $59,999 1 4 3 12 18 14 12 - 64
$50,000 $54,999 - 3 7 6 15 32 9 13 85
$45,000 $49,999 - - 1 1 12 36 41 5 96
$40,000 $44,999 - - 1 1 2 11 114 38 167
$35,000 $39,999 - - 1 1 3 4 10 88 107
$30,000 $34,999 - - - 2 1 - 1 6 10
[11 more between $0-$25K]
Totals 37 69 77 60 84 119 197 153 796
2. McDermott Will & Emery
"MWE announced their supplemental bonuses on Friday. The general impression is that the total bonuses paid (the initial bonuses in December and the supplementals) exceeded last year's bonus levels and met or generally exceeded the New York regular annual bonus levels. While MWE paid special bonuses in NY it did not, apparently, pay special bonuses outside of New York. The mood around the firm was positive Friday, with many associates finding out that they received bonus increases 4 to 6 times their original bonuses. Although the Firm could have gone an extra step by granting special bonuses outside of New York (as you are aware, there is data from Chicago, Boston, D.C and California that a number of large firms paid the special bonuses to all domestic offices) associates and income partners appear to be satisfied with the firm's response. While it was very unfortunate that the firm seriously misjudged the market early on, and failed to manage expectations correctly, MWE ultimately listened to its associates' concerns, answered every question posed in writing and otherwise, granted a forum for discussion and then more importantly, publicly admitted its mistakes and solved the problem. This proves, without a doubt, that associates at MWE have a voice and that the firm listens. That is a great statement about MWE and likely differentiates it from many of its BigLaw competitors."
"[I]s it worth doing a follow up on the MWE stories? The firm took a beating on ATL, but management seems to have made good on its promises. If my bonus is representative, the firm topped WilmerHale and Goodwin in the Boston market, and is in the Ropes range. My sense is that associates in Boston are quite happy with the results, and I suspect that the results are similar nationwide."
3. Cadwalader, Wickersham & Taft: We previously wrote:
"CWT announced its bonuses today in individual letters to the remaining associates. Some people got full market bonuses and others got letters that merely told them what 2008 salaries are, with no mention of a bonus."
We subsequently heard this:
"Some people in the Capital Markets group got NO bonus. I guess their bonus is that they weren’t fired. Also, no info on their 2008 salary at ALL.""[T]he people that DID get bonuses were on a scale based strictly on billable hours. Any pro bono, or summer associate recruiting, didn’t count towards that number."
We're still a little confused about the Cadwalader situation; we don't have a comprehensive read on the situation. If you do, please feel free to get in touch with us. Thanks.
(75) Comments
first
Xenu is, again, pleased.
Kaye Scholer only paid the special bonus based on hours (around 2,200). The special bonus isn't so special anymore.
Third?
Word is that the acceptance packages sent to CWT summers didn't even include salary quotes. What's up with that? However, I also hear--albeit indirectly--that the reason fort this conspicuous ommission is that CWT plans to hike up starting salaries at some point this year, but hasn't yet decided whether to do so before or after the summer. Again, all hearsay and probably much idle speculation.
That's such crap. Stop trying to start rumors, 5:18.
LAT -- Post on Jones Day!
CWT has always not paid bonus to anyone under 2000, or for other reasons they could think of. They never paid market bonus on a par with top firms. It is a cheap, penny pinching firm.
Yeah, 5:18, my salary for this summer was quoted on the first page as 4K per week.
5:28, No one who bills under 2000 deserves a bonus.
What's the word on bonuses at Orrick? Irell?
Lat, do a post on the Skadden hottest female associate contest: http://skaddeninsider.blogspot.com/2008/01/hottest-female-associate.html
Why are Latham associates happy when their bonuses are below market (regualar plus special)? A bunch of firms lieterally on the same block as them paid more.
D&L, I want my bonus.
to 5:54 - NY associates got a different memo (and higher bonuses)
Any word on Reed Smith Chicago?
What about K&S? A special bonus would be nice, since the regular bonuses are ridiculously below market.
King & Spaulding are not paying market in NYC?
Lavanya should win the Skadden Insider contest. Let's not kid ourselves.
Can someone tell me how the spread at Latham is determined? i.e., how much is hours-based, how much is purely subjective? Are Latham associates told any sort of formula, or does one just get a check at the end of the year and that's it?
CWT associate here. As always, there was a 2000 hour requirement which can include 100 hours pro bono.
5:18 is retarded, its not like sending out what the salary will be means they have to only pay that amount - jackass. what are you going to say "no i won't take 3500 a week I already agreed to 3100..."
Does this mean that, after all the negative press, MWE ended up paying better bonuses in CA than shops like OMM? That's messed up. I think this bodes well for peeps at firms like Mofo that have yet to announce. You really can't pay your first years from Boalt a 10k bonus and expect them to be happy while first years from Santa Clara are getting 30k at MWE.
Anybody got solid numbers to share from MWE?
Ha! The MWE comment in the article is so clearly a partner pretending to be a now-satisfied associate. Way to go MWE! Way to "differentiate yourself" from "many of [your] BigLaw Competitors!" Great job!!!
And then ask for a follow up story on ATL to undo all the damage done by your failure to recognize the fact that you can't just feed associates crappy bonuses and keep them in the dark...its called the internet! Helloooo...
But what, really, does starting at $5K and having to completely reverse yourself by tacking on $30K say about the judgment of the powers that be at MWE? Is that just a serious misjudgment of the market? When does it become plain old disrepect for associates? And why should associates think it won't happen again as soon as MWE thinks they can get away with it? If there were no ATL, wouldn't MWE associates still be stuck with their lousy $5K, despite the fact that comparable firms were giving much better bonuses?
MWE to lockstep, public bonus structure.
My in-house employer paid a special bonus, too, and I go home at 5:30 every day.
Man, I sure am glad I went in-house.
Props to MWE for correcting their huge mistake - may be a day late and a dollar short, tho.
The word from on high is that since the associates are uppity enough to demand market compensation, it's time to work them like rented mules and be more aggressive in firing under-performers.
Translation: if you have less than 2100 at the end of the year, not only will you not get a bonus, we might actually fire you.
I'm not sure how threatening the associates with dismissal is really going to help address the retention problem the managing partners created for themselves in December, but I guess that's why they don't pay me 1.5 million a year to manage big international firms right into the ground.
MWE Partner: "Don't quit, or we'll fire you!"
MWE Cog: "Thanks for the check. I quit."
MWE Partner: ". . . Well, that sure backfired"
7:18
You're such a stud. Can you tell me how much $$$ you brought in for your "client"?
I can't understand why those who go in-house try to shit on those who actually generate revenues for their organization. I guess if money is what you are most concerned about, you don't mind taking it from both ends.
I'm an associate at CWT and did receive market bonus. I think a rare minority did not receive a bonus. I'm also quite certain that even though CWT may have a 1900-2000 hours requirement, some associates who did not reach those hours did receive a market bonus.
I'm an associate at CWT and I got the triple--market bonus, the special bonus and three months' severance.
mwe may have stepped up the comp for the masses (kicking and screaming all the way of course), but plenty of hard working associates still got screwed. especially anyone who billed 2300 or 2400 hours. in some cases, after the supplemental bonus, there is now a 5k difference between comp for 2200 and 2400+ hours, all other things equal.
9:08, I can't understand why those who get laid off try to shit on those who actually generate revenues for their organization. I guess if time off work is what you are most concerned about, you don't mind taking it from both ends. CWT TO MARKET!
CWT Question - After taking into account (i) the 35 associate lay-off's, (ii) the stealth performance firings focused on Charlotte and NYC prior to the 35 lay-off's, (iii) the number of associate's who got zero bonus, and (iv) the number of associate's who would be naturally giving notice after receiving their bonus to move on to other opportunities - what percentage of associates in NY and/or Charlotte will be left? More specifically, how many in Cap Markets and Real Estate? When all is said and done, are we talking a 50% reduction in associates in those two departments in NY and Charlotte?
Akin Gump had a meeting about bonuses today, with announcements to come Wed. Bottom line: low, with an average bonus of $25,000 across all class years. Also doing away with the $60,000 "longevity" bonus for sixth years.
Why no comments on Baker Botts in NY? They are paying WELL BELOW MARKET.
it's a combo, some sort of hours + adjective or reviews = bonus. more hours or better quality = bigger bonus
9:16 - I can only speak about Cap Markets in NY. The current headcount, including partners and special counsel, is just over 100 (fyi: you can't rely on searching the public website to get this count), which no longer includes the 15 who were laid off and a few others who left in the past week or so. My guess is that headcount will sink to somewhere between 70 and 80. Many of those departures will be special counsel, more than a few of whom got shafted in the bonus department this year.
I agree with 9:11. MWE stepped up the plate for those in the 2000-2400 "sweet spot." I think that's great. But MWE did not step up in the same regard for the high billers (2400+). I expect to see a significant number of high billers walk, which I find disheartening, as most of them I know do great work and bring a lot to the firm (and are heavily relied-upon). In one regard, I see management's point -- that the 2400 hour plateau creates a disincentive to work extra hours, which improves quality of work product and the attorney's quality of life -- but this "new" policy leaves a bad taste in my mouth, given that many high billers are under incredible pressures by partners to bill such hours (e.g., deadlines in a fast-moving trial must be met; sometimes associates are placed on additional cases, despite already having 200hr months); additionally, and contrary to postings on this website by others at MWE in the past, I've been informed by partners at MWE (including an ex-Management member) that the MWE policy was that attorneys retained a greater percentage of their post-2400 hours. Obviously, that's not the case, and to the extent the high billers were operating under a similar assumption, this has got to be a kick in the teeth.
Final comment/question: Do you think that MWE charges clients when an associate works more than 2400 hours? Maybe it doesn't, which is why MWE denies associates any piece of compensation for those hours. Food for thought.
6:46, MoFo announced like 9 months ago. They have a strict, hours-based bonus system, which is announced at the beginning of the year (to the extent it changes from the previous year). This year, anything under 2100 gets you ZERO bonus. You are paid piddling amounts (under $10k) at 2100 and points higher (the cumulative may be more than $10k, but it is still going to be at least $30k under market, even if you're a billing machine). Chances are, they'll step up for bonuses paid in 2009, but they are not going to suddenly change the bonuses they announced long ago for this season.
10:38 - "In one regard, I see management's point -- that the 2400 hour plateau creates a disincentive to work extra hours, which improves quality of work product and the attorney's quality of life -- but this "new" policy leaves a bad taste in my mouth, given that many high billers are under incredible pressures by partners to bill such hours (e.g., deadlines in a fast-moving trial must be met; sometimes associates are placed on additional cases, despite already having 200hr months); additionally, and contrary to postings on this website by others at MWE in the past, I've been informed by partners at MWE (including an ex-Management member) that the MWE policy was that attorneys retained a greater percentage of their post-2400 hours."
That is one sentence! One f-ing sentence, man! What is wrong with you, and where did you learn how to write? If you're one of the people who got screwed over for the bonus, there is your first clue why.
6:55 is so right! Starting at $5K just to see if you could get away with it... shame on you MWE.
Thank you Lat! If you weren't here we would have all gotten the shaft.
Regardless, I think MWE made it pretty clear that they will NEVER pay a penny more than they feel they have to even if they have a “superstar” in their midst.
"Do you think that MWE charges clients when an associate works more than 2400 hours?"
Obviously, you're a very junior associate, have never seen a client bill, and have no idea how firms work. Are you kidding me? I don't even know where to start. The answer is YES.
11:10, if I were a Mofo associate I'd be livid if the firm didn't back off their "pre-announced" numbers. There are a lot of bright people at Mofo and if I'm making 10-20% less total comp than associates at less selective firms that would drool over your resume, I'd figure out a way to fix that situation pronto.
Would someone post the Latham bonus memo/numbers for New York associates.
Lat can you confirm that OMM is matching Latham bonuses. I heard there was a meeting between management and the associates committee and they came out that OMM will match effective February 15th for California and DC offices.
Confirmation?
WSGR bonuses are out. Here's just a taste: A run of the mill (not outstanding) 2002 grad gets 37,500 while someone with a high rating gets 43,750.
And Latham's 2002 class had a median of 63,500 and a 102,500 at the very top.
Skadden hottest female associate? Dude. or should I say, Woof!
Hey, JONES DAY DC BONUSES!!! THIS IS THE REAL DEAL!!!!! FINALLY!!!!! I couldn't frickin' believe it! Here is the chart that we've been piecing together. Just in time! And so soon after the NAGs were released into their own offices! It's like Christmas in January!
Here is the breakdown:
JONES DAY - DC OFFICE
2007 Bonuses
Class Base Median Average Top
1999 $0 $0 $0 $0
2000 $0 $0 $0 $0
2001 $0 $0 $0 $0
2002 $0 $0 $0 $0
2003 $0 $0 $0 $0
2004 $0 $0 $0 $0
2005 $0 $0 $0 $0
2006 $0 $0 $0 $0
Distribution of 2007 Bonuses
LoRange HiRange 1999 2000 2001 2002 2003 2004 2005 2006 Total
$130,000 $135,000 - - - - - - - - -
$125,000 $129,999 - - - - - - - - -
$120,000 $124,999 - - - - - - - - -
$115,000 $119,999 - - - - - - - - -
$110,000 $114,999 - - - - - - - - -
$105,000 $109,999 - - - - - - - - -
$100,000 $104,999 - - - - - - - - -
$95,000 $99,999 - - - - - - - - -
$90,000 $94,999 - - - - - - - - -
$85,000 $89,999 - - - - - - - - -
$80,000 $84,999 - - - - - - - - -
$75,000 $79,999 - - - - - - - - -
$70,000 $74,999 - - - - - - - - -
$65,000 $69,999 - - - - - - - - -
$60,000 $64,999 - - - - - - - - -
$55,000 $59,999 - - - - - - - - -
$50,000 $54,999 - - - - - - - - -
$45,000 $49,999 - - - - - - - - -
$40,000 $44,999 - - - - - - - - -
$35,000 $39,999 - - - - - - - - -
$30,000 $34,999 - - - - - - - - -
Totals 0 0 0 0 0 0 0 0 0
!!!!!!
MoFo just came through with a little bump (increase of 10K-20K per person, depending on class year). Now they're only very below market, instead of extremely below market! Whoopee!
Sounds like Aunt Jeremiah took one in poop shoot. Was WSGR really that low?
I guess Auntie is used to it. Be sure to thank Uncle Larry for the pleasure!
Bill Gates to $190 billion.
Yes, WSGR was that low. I need to look more carefully at the memo, but overall it's really just sad. I'll leave it to somebody else to post the whole thing.
(You know how some firms give a prorated portion of the bonus for 1st years? Well, WSGR gave a prorated portion of 10,500! Wow!)
WSGR doesn't make Cravath or Kirkland money, but with a PPP of 1.3 this firm should have better bonuses.
12:49 wins.
C'mon, Lat, you lazy queen, post something new already! I am bored off my ass here....
WSGR is a shadow of its former self (which wasn't all that). Google, and they are losing that business to better firms. Dan Weiser was the only good lawyer they had -- and he accidently hung himself...
WSGR = Which Shitty Groups Remain?
Dan Weiser is my new lawyer...
Sincerely,
Heath Ledger
10:00 - What Special Counsel are rumored to be leaving the cap markets department at CWT? I know that QUIKR has around 6 of them.
9:16, please sign up for the next "Remedial Punctuation for Lawyers" CLE.
LAT -- POST on Jones Day DC!!! We want to dig up dirt on this!
LAT -- Why do you ignore Jones Day?
12:15--its in the comments for the earlier post
Orrick announces bonus schedules at the beginning of the year.
'06 - 25k for 2000, 35k for 2100 and then 10k pro rata from 2100 to 2400.
The schedule scales up according to class year as usual (although I think 7th/8th year may be 10k below market).
Special bonuses that match the Cravath numbers paid only to NY associates who billed 2000 hours or more.
There is no memo. It was briefly mentioned in a firm wide e-mail on bonuses that the NY office was paying supplemental bonuses as a response to the market, and there was a meeting in NY to lay out the bonus schedule.
Where is Bingham? They followed Latham's base numbers last year if I'm not mistaken - time to do it again?
8:57-- I'm surprised any CWT associate would say this. A lot of people did not get bonuses, including people who did reach their hours (but had their marketing/recruiting time deducted to put them below). Not one person under 1900 hours got full bonus.
If you want Lat to do a post on Jones Day DC send him detailed information on what is going on inside the firm. If you just make comments that he should do a post, more likely than not, there will be no post on Jones Day.
Anyone heard anything about DLA Piper? We're in the dark over here (as usual).
There was a shitload of CWT associates, in cap markets, corp, lit, all over the firm, who got assfucked on their bonuses.
Stop picking on CWT, it is in extremely poor taste to make fun of someone who is dying.
MWE definately did NOT pay special bonuses to anyone under 2000 hours, even for slow groups.
The recruiters at least PRETEND to love me =)
CWT Associate here - full bonus plus special, billed around 2100
Another CWT associate here (lit) - mediocre bonus with no special - also billed 2100
910
How did you not get a market bonus having billed 2100?
On the day of the layoffs, Greg Markel told lit associates that the firm would pay market bonuses based on the same criteria as every other year (basically, if you were not about to be fired, you get full bonus). Then, one week later, something like 50% of the associates (excluding first years) in the department got absolutely no bonus. We found out by getting a letter in our inbox that only mentioned salary and nothing about bonus.
844
Isn't the "same criteria" billing at least 2000 hours (with 100 being allowed for chargeable hours)?
910, same question. 2100 and no bonus? Are you sure you are not counting vacation days, holidays, etc.?
10:14
No, as I said, the criteria in the past was you got a bonus unless you were about to be fired. This year, people who had well over 2000 hours got nothing, because the partner they worked for assigned them to do marketing pitches or articles. That stuff always counted in the past and they always gave bonuses to people who fell short on their hours just to keep them around. I have never heard of them not giving bonuses to half a department, particularly when it is obvious that ppp is going to be as ridiculously high this year as it was last year.
Guys PPP at CWT is not going to be so hot - read between the lines - the firm made its money from transactions that no longer exist - the firm is blasted back to what it was 10 years ago - a second tier shithole
If your group was slow at MWE, there's no excuse for not taking pro bono work to beef up your hours. While largely stingy, one thing MWE is good about is giving full billable credit for pro bono hours -- with no limit. Your first 60 pro bono hours are automatically counted as billable, and if you need/want to work more, you just submit a short memo asking for permission so that those extra hours are counted (I've never heard of a denial). I know an associate who logged 250+ billable hours this way, and I got almost 100.
Given how easy it is, if you didn't make the minimum 2000 hours, you don't deserve a bonus at all -- special or regular. Of course doing pro bono means you actually have to work...but you don't get billable hours for free!