Associate Bonus Watch: Weil Raises the Ceiling
As you may recall, back in November, Weil, Gotshal & Manges announced special bonuses, at market levels. In its memo, the firm explained that year-end bonuses would be announced at a later point:
As is customary, 2007 year-end bonuses will be paid at market to associates receiving an “Overall Strong” rating and will be above market for associates receiving a “Distinguished” rating in class years 2003 and above. Year-end bonuses will be paid on January 25, 2008.
That point has come. Weil just announced its year-end bonuses -- and for top performers at more senior levels, i.e., "Distinguished" associates in the class of 2003 and above, the bonuses are above market.
For details, check out the memo, after the jump.
WEIL GOTSHAL & MANGES -- MEMORANDUM -- 2007 YEAR-END ASSOCIATE BONUSES
From: Professional Evaluation and Compensation Committee
On January 25th, the Firm will pay year-end bonuses to our U.S. associates in appreciation for their hard work and dedication in 2007. These bonuses will be in addition to the special bonus that was announced on November 7, 2007. Associates in class years 2003 and more senior will receive bonuses based on our merit bonus system, reflecting our view that exceptional performance and dedication should be rewarded.
Most eligible associates will receive an “overall strong” rating and are paid at market with their peers at other major firms. Those associates receiving a “distinguished” rating are compensated above market.
All aspects of an associate’s performance are considered when assigning a rating. No minimum hours threshold is required for an associate to receive a “distinguished” bonus. The number of associates receiving a “distinguished” bonus varies from year to year, since it is merit-based.
This year, approximately 18% of class year 2003 associates will receive a “distinguished” rating, with the percentages increasing in more senior classes. Overall, approximately 31% of our eligible U.S. associates will receive a “distinguished” rating.
Base salary increases will be retroactive to January 1. The retroactive base compensation increases will be included in associates’ January 25 pay. All compensation will be subject to customary prorations.
Class Year 2008 Salary 2007 Bonus 1
2007 $160,000 $11,700
2006 $170,000 $35,000
2005 $185,000 $40,000
2004 $210,000 $45,000
2003 $230,000 Overall Strong $50,000
Distinguished $60,000
2002 $250,000 Overall Strong $55,000
Distinguished $65,000
2001 $265,000 Overall Strong $60,000
Distinguished $70,000
2000 $280,000 Overall Strong $65,000
Distinguished $75,000
1999 $290,000 Overall Strong $65,000
Distinguished $80,000
1998 & earlier case by case Overall Strong $65,000
Distinguished $85,000
As we announced last year, merit bonuses for 2007 will begin for the class of 2003, or fourth-year associates, rather than third-year associates, as has been our past practice. The change was the result of associate focus groups in the summer of 2006, where many associates noted concerns that during their third year of practice, they had not yet received sufficiently diverse practice experience and partner exposure to have been able to distinguish themselves from their peers.
Earlier: Associate Bonus Watch: Weil Announces Special Bonuses
(39) Comments
Will other top firms dole out more money?
What happened with that S&C supplemental bonus pool?
J.C. that is huge!
wait so what's the difference between what they are paying and what everyone else did?
8:47 - That's what she said.
am i missing something? where is the salary increase?
It's a "bonus increase," dumbass, and it goes to the 31% of mid-level and senior associates who received a "distinguished" rating (who, as per the chart, will get $10-20k more than market--in addition to special bonuses already announced). This appears to be a more transparent version of the Kirkland bonuses. I don't work at Weil, or know anyone who does. But this announcement was entirely clear.
NY to 190!!!!!
weil has for many years paid an additional merit based bonus to "distinguished" class members. this is old news.
I like how Weil made it look like eliminating the bonus for 3rd years was the associates' idea.
What really happened was this: They asked their "focus groups" whether they felt that they had the ability to distinguish themselves by the end of their third year. I'm guessing about 82% said "no." So they eliminate distinguished bonuses for everyone.
Brilliant.
If class of 2006 gets $35K, then that is below market.
Jesus, people. Weil paid special bonuses to all associates in November.
You know what, Tom Harkin, we're going to New Hampshire and South Carolina, and Michicgan, and Oklahoma, and Missouri, and California, and then we're going to Washington, D.C. to take back the White House... YEEEEEEEEAAAAAAAYYYYYAAAAH!!!!
They already paid special bonuses, so the 35k is in fact market.
Latham announces tomorrow. Should be interesting.
10:24 - that is exactly what happened.
I think it's safe to say we officially have some market distinction. Instead of lockstep raises we've got some firms stepping up and some firms giving up (CWT as the top example).
wouldn't say publicizing the "distinguished" bonus somehow means weil raised the bar. Many of the firms that already announced paid top associates a little sumpin' extra.
Time to separate the wheat from the chaff. NY to $200k - leave the lil smokies in the dust.
I applaud Weil, but Kirkland still pays quite a bit more.
Mofo is set to announce bonuses at the end of the month. Should be interesting to see if they "catch up" to the other BIG CA firms or if they get left behind. You may recall that mofo eliminated bonuses for associates billing under 2100 when it raised salaries earlier this year. It will be interesting to see if many people make a move if mofo stays under market as it seems the headhunters know the situation and are already descending on the mofo associates.
How's about a post about which presidential candidate will best be able to stimulate the economy. Obviously, not a democrat. So hopefully attorneys will vote to help save their jobs and elect a conservative. Go Romney. The other Republicans don't really qualify as conservatives.
no one thinks that this is actually a bad thing? really?
the immediate, intense publicity given to all these salary and bonus announcements only serves to increase the pressure that every firm feels if it wants to "compete" for the "top tier" recruits from law schools. to stay profitable, though, they've gotta keep raising the billables. when you give associates the option to take a little less money in exchange for having some semblance of a life, they jump at the chance.
no one sees the problem here?
I agree with the post above regarding MoFo. Next week it has a chance to fix the huge gap between its current bonus structure and other similar California firms. I
1:15 How can you view salary increases as a bad thing in BigLaw!?!? If you are an associate and want lifestyle, less pressure and less money you have the highly reasonable option of going to a smaller less pressure filled environment. BigLaw is not the place for those who want to skirt by on the edges and bill 1600-1850. I (and by the way I'm an associate with kids and a family that is hopefully not destined for failure) have little sympathy for those that joined BigLaw, want top $$$ and complain about lifestyle. At some point the reality has to set in that those in Biglaw should expect to bill 2000+ and get paid every last dime for doing so. If everyone bills 2000+ at the rates currently being charged these "outrageous" salaries and bonuses will be supported and the partners will still make their enormous profits. There is noting wrong with wanting a life, but there is something wrong with wanting a life, wanting $$$ and not being willing make the sacrifices required by BigLaw. The only associates I have sympathy for are those at BigLaw who are billing in excess of 2,000 and whose firm's have cheaped out. Those firms should pony up and be raked over the coals.
Also, 1:15, if you are a partner at BigLaw worried about your million$+ plus PPP you are a greedy twit who knows that it is your associates and non-equity partners do all your grunt work and drive the $$$. Those associates and non-equity partners deserve a substantial portion of the pie if you expect us to give up weekends, vacations, family time etc. If you want top performance you had better pay every last penny the market dictates.
Wow....now I really need a coffee.
Sheesh, why not just give out letter grades and latin honors.
My old biglaw firm gave out letter grades. No shit.
ridiculous. so a handful of people get an extra 10 or 20k (or am i misunderstanding the structure?) -- it's not like they can retire on that and it just means they're going to have work more to pay for it.
8:58 comment is retarded.
Distinguished associates get an extra 10 or 20k for working more or performing at a higher level last year. They don't have to work more to pay for that bonus in 2008.
If you truly think it is ridiculous that the people who work harder or perform better are paid more you are either a clueless law student who has never worked a day in his life or an underperforming associate who has been riding the lock-step compensation wave for too long.
Mo money, plz.
So despite the recent Atlanta movement, it doesn't look like firms are raising salaries. How odd to have a market with NYC and Atlanta both at 160K!
$$$$ $ $$$$$$ $$$$$ $$ $$$$ $$$--$$$ $$$ $$ $$$--$$$ $ $$$$$ $$ $$$$$$$$ $$$$$$. $$$$ $$$$$$$$$ $$ $$$$ $$$$$ $$$$$$$!
$$, $$$ $$$ $$$$ $$$$$: $$$ $$$$.
-$$$$$$$$$
I need a real man. A man who earns 190.
first question every client should ask when staffing cases at Weil: Are these associates ranked "distinguished" or merely "par."
I'm a man! I'm 40!
The "distinguished" bonus is similar to what Dewey Ballantine did and what Dewey & LeBoeuf is likely to do. At Dewey, any associate in good standing who billed over 2,400 hours would get a "special bonus," which amounted to a 20% kicker to their-end bonus.
The "distinguished" bonus is similar to what Dewey Ballantine did and what Dewey & LeBoeuf is likely to do. At Dewey, any associate in good standing who billed over 2,400 hours would get a "special bonus," which amounted to a 20% kicker to their-end bonus.
No, it's not the same at all. Weil's extra bonus is merit-based. Dewey's is just hours-based.
What does it take to get "distinguished" status? Is it tied to billable hours? Quality of work? Some hybrid?
And how does this compare with the additional bonuses given by firms like Schulte for additional hours?
Re "first question every client should ask when staffing cases at Weil: Are these associates ranked "distinguished" or merely "par.""
First question every client should ask when staffing cases at all firms: What incentive do these associates have to do good work on my file if they all make the same $ anyway?