JD Journal » associate bonuses

Goodwin Procter Announces 2011 Bonuses and 2012 Base Salaries

jim — Sat, 21 Jan 2012 04:26:46 +0000

Associates working at the law firm of Goodwin Procter received their individual notices about their bonuses. Scott Webster, a chair of Goodwin’s attorney review committee, sent out a memo that explained the firm’s 2011 bonuses and 2012 base salaries this week. A snippet from the memo is below:

“Associates in good standing who met the 1,950 hour threshold during the fiscal year ending September 30, 2011, through billable work, pro bono work (up to 150 hours) and legal advice to the firm will receive bonuses.

The 2011 bonuses are determined by reference to the bonus scale listed below. Individual bonus awards in each class may be above or below these amounts based on an evaluation by ARC of the factors described above. About 37 percent of associates receiving bonuses will receive the amount listed below for their class, and about 33 percent will receive more than the amount listed below.”

The memo sent out by Webster prints the pay scale sent out by Sullivan & Cromwell, which started at $7,500 for the class of 2010 and topping off at $42,500 for the class of 2003 and earlier associates.

In terms of base salaries, Goodwin is staying with the status quo, with first-year associates making $160,000 and eighth-year associates making $280,000. The memo ends with a reminder for associates that their pro bono work is very important to themselves and the firm:

“The firm remains committed to the Pro Bono Institute Pledge of dedicating 3% to 5% of its annual billable hours to legal matters on behalf of people in poverty or to advance civil rights. Goodwin Procter believes that pro bono service is a shared contribution on the part of the firm and each individual attorney. As in 2011, the firm will credit up to 150 pro bono hours towards the 1,950 bonus eligibility threshold. Pro bono work in excess of 150 hours will continue to be considered by ARC when reviewing the quality of an attorney’s work.”

Irell & Manella LLP Announce Bonuses

jim — Fri, 06 Jan 2012 19:19:38 +0000

According to reports on Wednesday, the law firm of Irell & Manella LLP has doubled the bonus value set forth by Cravath Swaine & Moore LLP earlier in December. Irell & Manella LLP is said to have dished out close to $75,000 to its associates.

The 2010 class at Irell will be issued a $15,000 bonus; the 2009 class will be issued a $20,000 bonus; the 2008 class will be issued a $30,000 bonus; the 2007 class will be issued a $40,000 bonus; the 2006 class will be issued a $50,000 bonus; the 2005 class will be issued a $60,000 bonus and the 2004 class will be issued a $75,000 bonus.

The memo sent out to associates at Irell emphasized that the bonuses were double the ones handed out by Cravath.

The Irell firm is not the first law firm to surpass the bonus threshold set by Cravath in December. In the final month of 2011, Fried Frank Shriver & Jacobson LLP said they would top the Cravath scale as they handed out bonuses that had varying amounts reaching a cutoff of $52,500.

Also in December, Quinn Emanuel Urquhart & Sullivan LLP announced that the end of year bonuses it would hand out would also exceed the Cravath pay scale. Their bonuses surpassed the Cravath ones for lawyers who dedicated billable hours over 2,100 during 2011. Bonuses from Quinn Emanuel ranged from $6,375 to $62,000 and they were based on length of time at the firm and how many hours the lawyers worked during the year.

There were plenty of law firms to top the scale set by Cravath in 2011 and those firms are Sullivan & Cromwell LLP, Debevoise & Plimpton LLP, Cleary Gottlieb Steen & Hamilton LLP, Simpson Thacher & Bartlett LLP and Clifford Chance LLP. It was reported that Clifford Chance LLP handed out bonuses worth $42,500 for the 2003 class and older.

The law firm of Kirkland & Ellis LLP handed out bonuses for 2011 that were higher than those issued by Cravath.

Some of the associates at Kirkland who were able to bill hours ranging from 2,250 and 2,350 hours for 2011 reported that they had been issued bonuses almost twice the amount of the Cravath pay scale. There were some associates who worked over 2,700 billable hours who claim they received close to $40,000 for a bonus. This amount would have been four times the amount handed out by Cravath.

The summer bonuses issued by Irell also went above those issued by Cravath in the spring. Irell said back in the month of July that it would issue bonuses of $27,500 to its associates, unrelated to the amount of billable hours worked.

Quinn Emanuel Urquhart & Sullivan Announce Bonuses

jim — Tue, 20 Dec 2011 03:45:40 +0000

On Friday, the law firm of Quinn Emanuel Urquhart & Sullivan LLP announced its year-end bonuses. The announcement revealed a scale that will surpass the one set forth by Cravath Swaine & Moore LLP for employees with more than 2,100 billable hours earlier this year.

The bonuses handed out by Quinn Emanuel will range from $6,375 to $62,000 for its associates. The bonus for an associated will depend on the associate’s seniority and the number of hours he or she worked in 2011.

The scale released by Cravath Swaine & Moore LLP has a range of $7,500 to $37,500. The most senior associates at Cravath are those that were hired in 2004. Those associates are receiving the $37,500 bonuses.

According to Above the Law, first-year associates at Quinn Emanuel will be receiving bonuses ranging from $6,375 to $23,500. The bonus for first-year associates will depend on the amount of hours they worked this year. A $6,375 bonus will go to those who worked less than 2,100 hours this year while a bonus of $23,500 will go to those who worked more than 2,800 billable hours this year. Bonuses ranging from $9,000 to $27,000 will be given to second-year associates. Bonuses of $13,875 to $33,500 will be issued to third-year associates.

The class of 2007 at Quinn Emanuel will be receiving bonuses ranging from $18,750 to $40,000. The class of 2006 will be receiving bonuses ranging from $23,625 to $46,500. The class of 2005 will be receiving bonuses ranging from $28,500 to $46,500. The most senior associates at the law firm will receive bonuses ranging from $32,250 to $62,000.

In 2010, Quinn Emanuel gave its associates 150 percent of the Cravath scale, but the extra 50 percent was not paid out until June. The firm did say that it would be handing out spring bonuses for this year but did not say anything about the bonus scale. The firm did say that it would match any bonuses handed out by other competitive firms. The bonuses handed out by Quinn Emanuel at the end of this year for its senior associates will exceed the bonuses going to senior associates at rival law firms.

Associates from the class of 2003 at the law firms of Debevoise & Plimpton LLP, Cleary Gottlieb Steen & Hamilton LLP, Simpson Thacher & Bartlett LLP and Clifford Chance LLP were said to bring home bonuses of $42,500 this year. These numbers prompted the firm of Weil Gotshal & Manges LLP to increase its year-end bonuses to $42,500 from $37,500.

The drop in earnings to roughly 95 percent for the firm of Susman Godfrey LLP caused its year-end bonuses to range from $40,000 to $110,000. These numbers are slightly lower than last year’s bonus scale. Quite a few law firms have announced their plans for year-end bonuses over the past month, with many more expected to hit the public over the next week or so as we get closer to 2012.

Weil Gotshal & Manges Announce Bonus Increase

jim — Thu, 15 Dec 2011 22:20:18 +0000

As a response to other law firms topping the year-end bonuses that Weil Gotshal & Manges LLP announced they would hand out, the firm said it will bump the bonuses for eighth-year associates and above to $42,500, according to La360.

The original bonus scale set up by Weil, which was announced on Monday, ended at $37,500 for associates hired in 2003. Other senior associates would be given their bonuses on a case basis. Ever since Weil announced its bonuses, firms such as Debevoise & Plimpton LLP, Cleary Gottlieb Steen & Hamilton LLP, Simpson Thacher & Bartlett LLP and Sullivan & Cromwell LLP have handed out bonuses of $42,500 to their associates who were hired in 2003.

“In order to provide U.S. associate compensation commensurate with that paid at our peer firms, the management committee has decided to increase the overall strong bonus for the class of 2003 and more senior to $42,500,” Weil said in a memo to U.S.-based associates.

The firm also announced that the bonuses will still be paid on December 23. Weil is just another firm to announce bonuses of $42,500. Clifford Chance LLP announced their bonuses of $42,500 on Wednesday of this week.

“As we have done in the past, Akin Gump is matching the market bonus in [New York],” Akin Gump firm spokeswoman Kathryn Holmes Johnston said in a statement Wednesday. “For all other domestic offices, Akin Gump is awarding merit bonuses that will be determined in January and paid Feb. 15, 2012. A determination regarding spring bonuses will be made in 2012.”

The bonus scale sent in a memo to the associates of Weil Gotshal pretty much matches the bonus scale set by the firm of Cravath Swaine & Moore LLP last month. Their bonus scale almost directly matches the one they issued in 2010 to their associates. Ever since Cravath announced its bonuses, law firms have matched their bonus scale, while other firms have gone well above the scale set forth by Cravath.

Some experts in the field feel that the bonuses handed out by Weil Gotshal do not meet the firm’s increase in revenue this year. Instead, the bonuses sit at or near the ones handed out by the firm in 2010. The bonuses will be paid to associates on December 23. Also in the memo, the 2012 base salaries will take effect on the 13^th of January but will be retroactive to January 1. The memo also told associates that the bonuses will be subject to any pro-rations that are customary in the firm. The bottom tier for bonuses, associates hired in 2010, is worth $7,500.

Experts believe that more and more law firms across the country will be announcing their year-end bonuses within the coming week, especially as we creep closer towards 2012. The majority of law firm year-end bonuses issued this year have matched the Cravath scale but some of the more recent ones have gone past the Cravath scale.

Paul Weiss Announces Bonuses

jim — Tue, 13 Dec 2011 18:17:55 +0000

The law firm of Paul Weiss has recently announced its year-end bonuses for associates. The bonus schedule being set forth by Paul Weiss seems to match those on the Cleary Gottlieb scale, which is being used to compare law firm bonuses being handed out at the end of this year. The Cleary Gottlieb scale is possibly the most generous bonus scale for main-line law firms in the United States, according to Above the Law.

The Cleary Gottlieb scale offers prorated bonuses for associates hired in 2011 by law firms and a payment ceiling of $42,500 for senior lawyers, which were hired in 2003 or earlier by law firms. The reason it is being called the Cleary scale is the fact that there are some law firms that do not pay the stub and others that do pay the stub on top of the bonus for high-ceiling associates.

A memo was sent out to employees recently that detailed the bonus scale set forth by Paul Weiss and when payments would be made. The bonuses will be paid to the associates on December 23, just in time for the holiday bills to start arriving in the mail. The bonus scale from Paul Weiss is as follows:

Associates hired in 2011 will receive a bonus of $7,500, which will be prorated based on the associate’s start date.

Associates hired in 2010 will receive a bonus of $7,500.

Associates hired in 2009 will receive a bonus of $10,000.

Associates hired in 2008 will receive a bonus of $15,000.

Associates hired in 2007 will receive a bonus of $20,000.

Associates hired in 2006 will receive a bonus of $25,000.

Associates hired in 2005 will receive a bonus of $30,000.

Associates hired in 2004 will receive a bonus of $37,500.

Associates hired in 2003 or earlier will receive a bonus of $42,500.

The firm of Paul Weiss also announced that counsel bonuses will be released in a separate announcement from the company. When the bonus schedule of Paul Weiss is compared with the one released by Cravath, Swaine & Moore, you can see that the schedules are almost identical to one another.

The bonus schedule from Cravath, Swaine & Moore is provided by The Am Law Daily and is as follows:

A $7,500 bonus goes to associates hired in 2010.

A $10,000 bonus goes to associates hired in 2009.

A $15,000 bonus goes to associates hired in 2008.

A $20,000 bonus goes to associates hired in 2007.

A $25,000 bonus goes to associates hired in 2006.

A $30,000 bonus goes to associates hired in 2005.

A $37,500 bonus goes to associates hired in 2004.

Quite a few law firms in the United States have announced year-end bonuses for their associates over the past couple of weeks, following in the footsteps of Cravath, Swaine & Moore, which announced its year-end bonuses last month. Most companies are handing out their bonuses before the final day of the year.

Proskauer Law Firm Announces Year-End Bonuses

jim — Thu, 08 Dec 2011 02:18:04 +0000

The latest law firm in the United States to match the end of year bonuses handed out by Cravath Swaine & Moore LLP is Proskauer Rose LLP. Cravath announced last week that it was handing out bonuses of $37,500 at the end of the year to associates who are seven year veterans.

The bonuses also match those handed out by Skadden Arps Slate Meagher & Flom LLP. The first-year associates at Proskauer will be awarded a $7,500 bonus; a second-year associate will be awarded a $10,000 bonus; a third-year associate will be awarded a $15,000 bonus; a fourth-year associate will be issued a $20,000 bonus; a fifth-year associate will be issued a $25,000 bonus; and a sixth-year associate will be issued a $30,000 bonus. The law firm’s spokesman, Josh Epstein, confirmed these bonuses on Monday via Law360.

“This has been a year of enormous achievement and momentum for the firm that included client and pro bono successes too numerous to list,” Proskauer’s executive committee told its employees in a memo posted by Above The Law. “On behalf of the entire partnership, we thank you for your contributions to these successes, your enthusiastic embrace of the challenges and changes of the past year and the vibrant spirit you bring to the firm every day.”

The bonuses will be issued on December 30 to any employees still employed by the firm at that time, as explained by the memo. The end of year bonus schedule for the law firm is close to its schedule from 2010, which were the same for all of the associate groups except for the seven year associates. Just like the Cravath seven year associates, the Proskauer associates will be awarded $35,000 bonuses. Representatives from Proskauer declined comment.

Back in tge month of March, the Proskauer firm decided to match the Cravath firm when it handed out spring bonuses totaling $20,000 for its associates. Cravath announced the spring bonuses on January 31, 2011, which followed a spring bonus announcement by Sullivan & Cromwell LLP. Associates at law firms across the country from the classes of 2004-2007 were the first ones to receive spring bonuses.
These are the first bonuses handed out by the Sullivan firm since 2009. The bonuses for the Sullivan associates are as follows: $10,000 for associates from the class of 2007; $12,500 for the class of 2006; and $15,000 for the class of 2005.
For associates who worked started working at the firm between the years of 2004 and 2006, Cravath issued bonuses of $20,000. Anyone who started working at the firm in 2007 received a bonus if $15,000 and $2,500-$10,000 to associates who began working at the firm any time after that.

The Skadden firm issued spring payments in 2011 as well, dolling out $20,000 to associates who started working at the firm in 2006 or earlier; $15,000 to associates from the class of 2007; and $10,000 to associates from the class of 2008. Other law firms that handed out spring bonuses include Gibson Dunn & Crutcher LLP, O’Melveny & Myers LLP and Fried Frank Harris Shriver & Jacobson LLP.

Information for this article was researched on Law360.

Spring Bonuses at WilmerHale

joshua — Thu, 03 Mar 2011 21:49:33 +0000

Like so many of its counterparts, WilmerHale announced that associates will receive a spring bonus to be paid on April 29. Most firms have followed the scale set by Cravath, but in keeping with its move away from lockstep compensation, WilmerHale says bonuses will be merit based and in many cases will significantly outpace the market. According to the firm, roughly 43% of its associates received above market size bonuses at the end of 2010.

That might help take the sting off of the lower than average salaries associates reported in The American Lawyer’s associate’s survey for 2010.

Shearman & Sterling Jumps on the Spring Bonus Bandwagon

joshua — Thu, 24 Feb 2011 21:25:23 +0000

We spent much of the first half of winter bemoaning the sorry state of associate bonuses which held firm at last year levels despite widespread increases in firm profits. Now we get to spend the end of winter celebrating the fact that most firms seem to have caught on to this particular inequity.

Following a pattern set by Cravath, which has become a pattern itself, Shearman & Sterling has announced that associates will receive a spring bonus at the end of April. The numbers are by now familiar – $7500 to $20,000, depending on seniority.

Cravath was not the first firm to announce spring bonuses, but it set the bar a bith higher in terms of size and most firms have lined up behind Cravath.

Linklaters Paying Spring Bonus to US Associates

joshua — Wed, 23 Feb 2011 18:56:44 +0000

In yet another sign that things are looking up in the legal industry, Linklaters became the second Magic Circle firm to announce spring bonuses for its US based associates. Freshfields announced its spring bonuses last week, following a string of New York firms breaking the ice.

Linklaters will pay associates in its US offices as well as US-qualified associates outside the country between $7500 and $20,000 dollars at the end of April. These bonuses match the scale set by US firms like Cravath and Cleary Gottlieb.

Linklaters has 26 offices in 19 countries and is one of the five members of the “Magic Circle” of prominent UK law firms.

Morning Roundup

joshua — Fri, 26 Nov 2010 13:47:30 +0000

Good morning everyone! Today is Friday, November 26th, and it’s Black Friday! Here’s a quick look back at the latest headlines.

Former Texas solicitor general Gregory Coleman died in a plane crash…

Milbank will pay associate bonuses on what is rapidly becoming known as the Cravath scale…

Skadden matched the associate bonus scale announced earlier this week by Cravath…

Milbank Falls In Line On Bonuses

joshua — Wed, 24 Nov 2010 19:33:22 +0000

Milbank will pay associate bonuses on what is rapidly becoming known as the Cravath scale. For the second year in a row, Cravath started bonus season off with bonuses far below those of two years ago, and firms have hastily fallen in behind issuing bonuses at the same rate. With numbers matching exactly there isn’t even a pretense that the bonuses are reflective of the firm’s actual profits for the year, and all three firms that have announced bonuses so far this year have said that nearly every associate will receive the full bonus, which means that they are no longer even pretending that the bonuses are conditional on an associate’s individual contribution to the firm.

First year associates will receive a bonus of $7,500 and seventh years will get $35,000. For most classes, these bonuses are exactly the same as last year’s, with only seventh year associates getting bumped up from $30,000.

But it’s still early and most firms have yet to announce their year end bonuses. Maybe they’ll surprise us.

Morning Roundup

joshua — Wed, 24 Nov 2010 01:17:48 +0000

Good morning everyone! Today is Wednesday, November 24th. Here’s a quick look back at yesterday’s headlines.

The exchange of artillery fire between North and South Korea set the stage for China to make a distinctive mark on the world stage…

The law firm bonus season began…

Crowell & Moring LLP & the University of the District of Columbia David A. Clarke School of Law established the Took Crowell Institute for At-Risk youth…

Wilmer Hale announced a plan for leadership succession…

Bonus Season has Begun

joshua — Tue, 23 Nov 2010 20:09:38 +0000

Last year, Cravath kicked off the bonus season with a bonus schedule that represented huge cuts from previous years. Most firms followed behind, although some firms took the Sullivan & Cromwell model instead, which differed only in that the most senior associates got an extra $5,000.

We can only hope that Cravath isn’t as influential at setting the market rate this year. Cravath will be paying bonuses that look identical to Sullivan’s 2009 scale – that is to say, no different from their own 2009 bonuses unless you are a 7th year associate. First year associates will receive $7,500, senior associates will get $35,000 and everyone else falls somewhere in between. AM Law has the full bonus scale and a copy of the firm’s memo here.

Obviously 2009 was a difficult year for the legal industry, as it was for the rest of the economy, but most signs indicate that 2010 was a vast improvement. We had hoped to see that reflected in bonuses for the year. It’s possible that other firms will buck the Cravath scale, even though very few did last year, but according my magic 8-ball the outcome is doubtful. Skadden has already followed with an identical bonus schedule.

Clifford Chance Alters Associate Bonus Policy

joshua — Mon, 12 Apr 2010 20:01:02 +0000

Billable hours will no longer be the deciding factor in determining associate bonuses at the London office of magic circle firm Clifford Chance.

A firm spokesperson told LegalWeek that while billable hours will remain part of the criteria, “bonus allocations will be discretionary. There will be no fixed correlation between hours and bonuses. Most importantly, there will be no hours’ target.”

The policy change is limited to Clifford Chance’s London office.

According to the report, bonus decisions will now include an array of other factors, including “overall achievement, effort, business and technical skills, client satisfaction, teamwork and community work.”

In addition to how the bonuses are doled out, Clifford Chance has also altered its bonus levels. The maximum bonus payment of 40 percent of base salary, which was previously eligible to associates with at least four years “post-qualification experience,” will now be limited to senior associates.

Clifford Chance is global London based firm with 29 offices in 20 countries and 3,600 legal advisers.

Bonuses and Thaws at Wilson Sonsini

joshua — Mon, 25 Jan 2010 22:21:56 +0000

Wilson Sonsini is thawing salaries, and using the Cooley Godward model. First years are getting $160k, third years are making $170k (had their been no salary freeze they would be drawing $185k) and to avoid paying second and third years the same, the second year associates are getting $165k.

Associates at Wilson Sonsini are also getting their year end bonuses. There are two tiers of bonuses, one for any associate that billed 1900+ hours and a higher tier for those that hit 2100 hours. The second tier of bonuses is higher than the Cravath scale, ranging from 9k to 45k.

All in all, this is fairly good news coming from a firm that laid off over 100 last year and recently laid off 20 more staffers.

Wilson Sonsini was founded in 1961 in Palo Alto, California and also has offices in Austin, New York, San Diego, San Francisco, Seattle, Shanghai, and Washington, D.C.

Hughes Hubbard Thaws Salaries, Issues Bonuses

joshua — Mon, 25 Jan 2010 17:44:08 +0000

Hughes Hubbard is thawing out salaries and junior associates are getting a double bump, placing them where they would have been had there been no salary freeze. Senior associates are splitting the difference, with the class of 2004 and beyond getting bumped up but not quite as far. Of course, this further muddies the water of the “market rate” situation.

In addition to salary raises, Hughes Hubbard associates are getting their 2009 bonuses. Those that made their billing target of 1950 hours will get a bonus on the Cravath scale. However, there are above market bonuses being paid out to associates that hit 2100, 2300 or 2500 hours last year.

Hughes Hubbard & Reed LLP, an international law firm based in New York, is ranked number one in New York and number two nationally on The American Lawyer’s A-List of the “top firms among the nation’s legal elite.” AmLaw also ranked the firm #4 in “Top Growth Firms” among the nation’s 200 largest firms over the last 10 years.

Salary Cut at Pillsbury Winthrop

joshua — Thu, 07 Jan 2010 16:54:37 +0000

Pillsbury’s first year associates outside of New York are receiving a salary cut, down to $145k. Any first year that bills in excess of 1950 hours will receive an additional $15k bonus. First years in the New York office will continue to receive $160k.

Salaries for 2010 have not yet been set and for the moment all associates are being paid at 2009 levels. When compensation levels are set, any raises will be made retroactive to January 1. In addition, 2009 bonuses will be paid at the end of this month.

Pillsbury Winthrop Shaw Pittman is an international law firm with offices located throughout the US and globally, including key financial centers New York, London, Tokyo and Shanghai.

Irell & Manella Doubles Market Rate on Bonuses

joshua — Wed, 06 Jan 2010 12:28:23 +0000

Los Angeles based Irell & Manella gave its associates the good news last week. The firm is paying double the Sullivan & Cromwell scale, which is the Cravath scale with a little boost at the top. There are no performance reviews or subjective criteria, just a minimum number of billed hours. All associates who billed 1900 hours last year got the bonus.

Irell & Manella LLP was founded in 1941 by lawyers Lawrence E. Irell and Arthur Manella, and has grown to 220 lawyers. It has offices in Century City and Newport Beach.

Dechert Pays Bonuses, Cuts (a few) Salaries

joshua — Tue, 05 Jan 2010 15:43:27 +0000

Dechert is paying year end bonuses that should, by now, look familiar to those following the industry. Like many of its contemporaries, the firm is matching the Cravath bonus scale, although it says that a few exceptional individual will receive bonuses up to $25k larger than the standard grid. In addition, it will continue to advance its associates forward in terms of base salary.

Most associates, that is. In Charlotte and Hartford, Dechert has decided to return to 2007 compensation levels for the 18 associates in those offices. This is more than a salary freeze, it’s an out and out pay cut.

Dechert is an international law firm based in Philadelphia with 18 offices and over 1000 attorneys.

Salary Thaw and Bonuses at Arnold & Porter

joshua — Mon, 04 Jan 2010 16:15:31 +0000

At the start of 2009 Arnold & Porter announced that it was freezing salaries but held out the hope that some or all of the difference might be paid out later if economic situations warranted. At the end of December a firm wide memo went out in which Arnold & Porter announced that all associates in good standing would be receiving the full difference between their frozen salaries and the salary they would have otherwise earned in one lump payment. Furthermore, salaries have been unfrozen for 2010, with everyone getting bumped up a year. Arnold & Porter will also be paying unspecified bonuses for 2009 based on a combination of billed hours and subjective reviews.

Founded in 1946, Arnold & Porter LLP is an international law firm based in Washington DC, which is well known for its trial, corporate, and antitrust work; and for its pro bono commitments and support for progressive causes.

Kramer Levin Matches Cravath Bonuses

joshua — Tue, 29 Dec 2009 19:30:16 +0000

Kramer Levin is paying bonuses mid February and they are based on the Cravath scale. To be eligible for a Cravath sized bonus, an associate must have met certain billable hour targets. Anyone that falls short may be eligible for a smaller bonus and those that joined the firm mid year will receive a pro rated bonus.

Founded in 1968, Kramer Levin Naftalis & Frankel LLP is a law firm with offices in New York City and Paris.

Mayer Brown Bonuses Match Cravath

joshua — Mon, 28 Dec 2009 15:05:57 +0000

Mayer Brownassociates got the news on Christmas Eve – the firm is matching the Cravath bonus scale. $7500 for first years, $30k for senior associates and the same sliding scale in between. What associates have not yet been told is whether or not they’re getting a pay raise next year. Mayer Brown froze salaries this year and have yet to announce next year’s compensation plan.

Mayer Brown is one of the largest global law firms both by number of lawyers and revenue. The firm has over 1,800 lawyers in key business centers across the Americas, Asia and Europe.

Associate Bonuses Announced at Kirkland & Ellis

aostler — Wed, 23 Dec 2009 23:46:15 +0000

Kirkland & Ellis is wildly popular with its associates most of the time but things may have changed a bit this year. Associates received their bonuses this week.

No standardized scale has been announced but some details have begun to trickle out. Some associates are reporting bonuses lower than the Cravath scale, and other reports indicate that to get to the Cravath levels associates need to have at least 2000 billable hours. Attorneys with the firm received their bonus information this week via email. If you have more specific information for us on the K&E bonuses, please send us an anonymous tip here.

Kirkland & Ellis has 9 offices total, with 6 in the United States. They are best known for their litigation, bankruptcy, and intellectual property departments. They have a track record of high revenues and profits, topping $1.3 billion in revenues in 2007.

Weil Gotshal Bonuses

joshua — Wed, 23 Dec 2009 19:33:43 +0000

Weil Gotshal is paying most of its associates on the Sullivan & Cromwell scale – $7500 for the first years up to $33k for the most senior – but some of the senior associates who are on Santa’s nice list will be getting a bit more. At the top of the scale, bonuses for about 25% of the most senior associates will hit the $50k mark. Weil is also bumping everyone up a notch for 2010 salaries.

Weil, Gotshal & Manges is an international law firm headquartered in New York City. It is one of the largest and most highly regarded law firms in the world, with approximately 1,300 lawyers and gross annual revenue in excess of $1.7 billion.

Quinn Emanuel Bonuses

joshua — Wed, 23 Dec 2009 00:22:13 +0000

Quin Emanuel is making its naughty and nice list. Those who were naughty are getting a lump of coal, and those that were nice are getting a bonus – in some cases a very nice bonus.

Bonuses are being paid by class depending on the number of hours billed. To qualify for the smallest bonus, an associate needs to have 2000 hours. At 2100 hours, associates hit the Cravath bonus scale, but it doesn’t stop there. Bonus go up again at 2400 hours, 2600 hours, and those that managed to bill 2800+ hours will get an even bigger bump. In this economy? Did anyone actually find 2800 billable hours? Presumably, the firm wouldn’t offer bonuses for that level without having some earners, so congratulations to any Quinn Emanuel associate earning the top chart bonuses – now take a day off!

Quinn Emanuel Urquhart Oliver & Hedges LLP was founded in 1986 by John B. Quinn. It is headquartered in Los Angeles, with major offices in San Francisco, the Silicon Valley, and New York.

Wachtel Lipton Bonuses

joshua — Tue, 22 Dec 2009 22:39:19 +0000

Wachtel Lipton pays bonuses as a percentage of base salary, with some variance in percentage based on year. Two years ago, associates received a bonus of around 100% base salary, not bad considering Wachtel is still paying above market salaries. Last year that dipped down to around 70%. This years, associates are receiving around 50% with junior associates receiving a few points less. Given that a first year associate is still earning $165k at Wachtel Lipton, this puts the firm up near the top for both salary and bonuses. Unlike many of its contemporaries, Wachtel has not frozen salaries either. It’s not hard to imagine that it will have a nice leg up in recruitment for a few years to come based on 2009.

Wachtel Lipton has a little over 200 attorneys practicing in New York City. Founded in 1965, it is frequently among the top firms for profit per partner.

Partial Salary Thaw at Fulbright

joshua — Mon, 21 Dec 2009 23:51:20 +0000

2009 salaries and bonuses at Fulbright have been frozen at the 2008 level. According to tipsters in the Washington DC office, however, Fulbright has decided to advance everyone one level for bonuses, although base salaries will remain frozen. Because Fulbright’s compensation model is heavily weighted toward bonuses, this is good news indeed for Fulbright associates.

For the moment our information is limited to the Washington DC office. If you have information about bonuses in other offices, please slip us an anonymous message here.

Founded in 1919, Fulbright & Jaworski LLP employs over 1,000 lawyers in 16 locations in Austin, Beijing, Dallas, Denver, Dubai, Hong Kong, Houston, London, Los Angeles, Minneapolis, Munich, New York, Riyadh, San Antonio, St. Louis and Washington, DC.

Salary Thaw at Akin Gump

joshua — Mon, 21 Dec 2009 21:57:20 +0000

Akin Gump has lifted its salary freeze and is planning to pay out bonuses, according to a memo sent out by firm chairman, Bruce McLean. Of course, that’s based on Akin Gump’s compensation system which isn’t strictly a base salary. To earn market level salaries, associates must meet quarterly billed hour quotas. That said, even the base salary isn’t bad, compared to some of the salary cuts we’ve been seeing lately.

If anyone has information on the Akin Gump bonuses, we’re anxious to hear it. You can send us an anonymous tip here.

Akin Gump Strauss Hauer & Feld LLP was founded in Dallas in 1945 by Robert Strauss and Richard Gump. The firm now numbers more than 900 attorneys and advisers in the United States, Europe, Asia and the Middle East.

Kelley Drye Trifecta – Abandon Lockstep, Freeze Salaries, Pay Bonuses

joshua — Fri, 18 Dec 2009 18:32:32 +0000

In a firm wide email sent out yesterday, Kelley Drye managed to fold what would typically be three different stories into one.

Over the next two years, Kelley Drye will move away from lockstep compensation and into a merit based pay scheme. Details have not yet been worked out. As a first step, however, 2010 salaries will be frozen at 2009 levels. Salaries for incoming associates, who were scheduled to begin in January, have not yet been set and according to the firm would be decided “early next year”. Looking at my calendar, January appears to me to be pretty early in the year so I certainly hope by “early next year” the firm means “within the next two weeks”. Either that or the firm is planning to re-defer their new associates but forgot to tell anyone. As a final point of business, the email said that bonuses for this year would range from $10k to $30k which puts them above the Cravath bonuses on the low end, assuming that first year associates receive bonuses at all.

Kelley Drye & Warren LLP is an American law firm headquartered in New York City. It has over 300 attorneys in 7 offices, including an affiliated office in Mumbai.

Secret Bonuses

joshua — Fri, 18 Dec 2009 18:02:15 +0000

Over the last two days word has been trickling in about the bonuses at Sidley Austin and today we starting to get some reports from Gibson Dunn as well. Apparently these firms are paying a bonus, but they aren’t saying how much. If you’re an associate at one of these two firms, you will get an individualized bonus based on merit, and the guy in the office next door won’t know how much you got. But we want to know, and we want to tell the world! So please, if you’re an associate for Sidley Austin or Gibson Dunn, send us a an anonymous tip. Please include your associate class for comparisons sake.

Stroock Pays Bonuses, Lifts Salary Freeze

joshua — Thu, 17 Dec 2009 22:37:36 +0000

Stroock is handing out bonuses this year, and like so many before them, they’re paying on the Cravath schedule. That is, any associate that hit their billable hours target of 1900 will get a Cravath size bonus and the firm says that those that “made extraordinary contributions to the firm” will get a bit more. As a reminder, the Cravath scale ranges from $5k for first year associates up to $30k for seniors.

The more significant news from Stroock is the lifting of the salary freeze. All classes will advance next year and receive a pay bump accordingly.

Stroock & Stroock & Lavan LLP is based in New York City, with approximately 350 lawyers in three offices, including Miami and Los Angeles. It was founded in 1876.

Dewey & LeBoeuf Match Cravath Bonuses

joshua — Wed, 16 Dec 2009 18:13:27 +0000

Same song, different singer. Dewey & LeBoeuf will follow the Cravath bonus scale (not the slightly better Sullivan & Cromwell scale). $5-$30k depending on class year.

Cravath bonuses were announced November 2nd. Since then Cleary, Skadden, Wilkie Farr, Simpson Thatcher, Davis Polk, Debevoise & Plimpton, and now Dewey & LeBoeuf have matched the same anemic scale. For a few days it looked like there might be a new scale after Sullivan & Cromwell posted a bonus schedule of $5-$35k and Paul Weiss fell in line, but those heady days of $35k for senior associates (everyone else was paid a Cravath sized bonus) seem to be over now.

Simpson & Thatcher Paying Bonuses to Public Interest Deferrals

joshua — Wed, 16 Dec 2009 17:58:34 +0000

Simpson & Thatcher deferrals who are doing public interest law while waiting for their new start date will be receiving a prorated bonus from the firm this year. Given that Simpson & Thatcher rushed in to follow the Cravath scale, the bonus won’t be much, particularly once it has been pro rated and taxed, but it’s still better than deferred associates from other firms are likely to get.

I spend too much of my time reading and writing about how biglaw is mistreating employees – it’s nice to get a story like this one. Props to Simpson & Thatcher.

More Bonuses

joshua — Thu, 10 Dec 2009 17:43:22 +0000

Two more firms have announced bonus schedules. Fried Frank’s bonuses for New York associates look and feel a lot like the Sullivan & Cromwell bonuses, which were of course a very slight modification to the Cravat scale most firms have been using. Boies Schiller & Flexner, however, is paying bonuses well above the market rate.

Fried Frank’s New York associates will receive bonuses up to $35,000. These bonuses are based on a number of discretionary factors. The $35k is the same cap that Sullivan & Cromwell and the firms that have followed it are using, but firms on the Sullivan scale base bonuses strictly on seniority. No word yet on what associates outside the big apple can expect.

Ahhh but the bonuses at Boies… Let’s just say that the top bonus for second year associates at Boies is $70k. That should give some idea of the difference in scale between Boise bonuses and the market rate. Boies is using a formula based on revenue generated for the firm and base salary. Bonuses are equal to 30% of the revenue generated, minus base salary. Bill more hours, make more money. Bring in more clients, make more money. As if that’s not enough, Boies is also paying above market rate base salaries, with first years starting at $174k. Oh, and did we mention – first year associates who started after September of this year are getting a $5k bonus.

Is There a New Standard for Bonuses?

joshua — Fri, 04 Dec 2009 20:52:52 +0000

Up until this week, the scale for bonuses seemed pretty set in stone with every firm falling in lockstep with Cravath. But earlier this week Sullivan & Cromwell dared to be different. Of course, it’s only different if you’re a senior associate in which case you’ll get an extra $5000, small consolation for not being made partner. For everyone else, it’s exactly the same as the Cravath bonuses.

Never the less, at least one firm is jumping on the Sullivan & Cromwell bandwagon. Paul Weiss gave its associates the news today. $7500 for the first years, $35,000 for the seniors, and the same sliding scale for everyone else.