The law firm of Kasowitz Benson has announced that it issued bonuses to its employees recently. The announced within the firm came last Thursday. The firm is focuses on litigation, calling itself a powerhouse, “a national law firm primarily focusing on complex and sophisticated commercial litigation, numbering 375 lawyers.”

The bonus memo issued by Kasowitz announced bonuses for associates working in New York and for special counsel that are ‘up to’ the Cravath bonus scale that was set back in December. The memo notes that numbers on its scale, “are benchmark amounts which are subject to adjustment to reflect individual performance and hours worked.” During the week of January 23, individual bonuses will be communicated by the firm to its employees.

The firm has been doing well of late, expanding and thriving a good amount, so some might find these bonuses disappointing. If you want to look into the ‘up to’ part of the memo, it pretty much means that there are some associates who will make less than the Cravath scale and others who will make no more than the Cravath scale when their bonuses are issued.

The memo also does not mention any spring bonuses for associates at the firm. But, in all fairness, not many other memos from other firms mention spring bonuses either. The majority of those firms did pay spring bonuses in 2011 though and Kasowitz did not. The failure to issue spring bonuses caused some dissention amongst the workers, especially those who left elite firms that pay spring bonuses to join Kasowitz.

• Willkie Farr Announces 2011 Year-End Bonuses
• Goodwin Procter Announces 2011 Bonuses and 2012 Base Salaries
• Representative Tom Reed Issues Bonuses to Congressional Staff
• Fewer Companies Issued Bonuses in 2011
• City Holiday Bonuses Defended by Mayor

Tom Reed, Republican Representative, awarded end of year bonuses to 15 of his 17 congressional staffers ranging from $500 to $2,500. It is up to lawmakers to hand out bonuses to their staffers, and the majority of them do so each year.

On the other side of things, freshman Republican Representative Ann Marie Buerkle, from Onondaga, said that she was not going to issue end of year bonuses to her staffers. Instead, she said she would return the 10 percent remaining budget to the Treasury.

“It’s consistent with us asking the American people to just tighten their belts,” Buerkle said. “I think that’s a good message. At least that’s consistent to what we’re saying about cutting spending.”

Freshman Representative Kathy Hocul (Democrat from Erie County) and veteran Representative Louise Slaughter (Democrat from Fairport) are the other members of the New York congressional delegation who decided not to issue end of year bonuses to their staffers.

Freshman Republican Representative Richard Hanna, from Oneida County, decided to hand out $500 bonuses to each of his staffers.

Chief of Staff Jay Dutcher and Deputy Chief of Staff Vicki Hook, from Reed’s staff, were not issued bonuses because they are Reed’s two highest-paid employees. Dutcher was paid an annual salary $165,000 through the end of September while Hook was on pace to earn $90,000.

“We wanted to do the bonus structure below that level,” Reed said. “The bonuses were based on performance and on individual merit.”

Despite paying out the bonuses, Reed did say that there was still money leftover in the budget that he can return to the Treasury. The exact amount of remaining money will be announced by Reed at a later date.

“It will be a significant amount,” he said.

Part of the office budget for Slaughter will also be returned to the Treasury.

“More often than not, she’s able to return some of her funding back to the Treasury,” Slaughter’s spokeswoman, Victoria Dillon, stated in an email. “As for this year, we know that there will be more expenses before the billing year ends, but as of right now we have $165,000 left and she hopes to return as much of that to the Treasury as she can.”

Members of the House receive budgets each year worth roughly $1.4 million. The value of the budget varies based on factors such as market rates for local office rentals, the distance of a congressional district from Washington, and the number of household mailing addresses within the district.

• Bonus Memo Released for Kasowitz Benson
• Fewer Companies Issued Bonuses in 2011
• 2011 Year-End Bonuses Thought to Shrink
• City Holiday Bonuses Defended by Mayor
• Bonuses Worth ‘Zero’ Expected in Record Numbers this Year

If your company did not issue bonuses at the end of 2011 then it is part of a growing trend in the United States. Challenger, Gray & Christmas released data from a survey it conducted about year-end bonuses. The data from their survey shows that 43 percent of companies did not issue year-end bonuses or other types of gifts to their employees at the end of 2011. In 2007, prior to the recession, saw 28 percent of companies fail to issue bonuses.

Half of the 53 percent of companies that issued bonuses gave their employees a non-monetary gift or a bonus that was less than $100. Then there were 31 percent of those companies that gave all of their employees bonuses based on the company’s performance. Then, 19 percent of companies issued bonuses to only specific employees based on performance. The bonuses issued by companies in 2011 were very similar to the bonus amounts issued by these companies in 2010.

The study released by Challenger, Gray & Christmas did show that employee morale can be boosted with simple gifts, even if the bonuses cannot be of large value. These bonuses can be as easy as $25 to a restaurant or a paid off day.

• Bonus Memo Released for Kasowitz Benson
• Representative Tom Reed Issues Bonuses to Congressional Staff
• 2011 Year-End Bonuses Thought to Shrink
• City Holiday Bonuses Defended by Mayor
• Bonuses Worth ‘Zero’ Expected in Record Numbers this Year

Mercer L.L.C., a human resource consulting firm, released a study in December that found the United States as having the lowest statutory levels of holiday entitlement for paid off time from work.

Challenger, Gray & Christmas conducted a straw poll and released data from it back in December. That data shows that since 2007, the percentage of companies in the United States not awarding bonuses come the end of the year increased from 28 percent to 43 percent. Challenger, Gray & Christmas is based in Chicago and is a consulting firm for human resources.

Challenger, Gray & Christmas says that even though a major factor is the economy, the firm also suggests that bonuses at the end of the year are not seen to be the employee morale boosters they once were. The firm also went on to explain that companies probably have found more effective methods of rewarding excellent work of their employees all while increasing morale and loyalty of the staffers.

“It doesn’t have to be a Wall Street sized bonus check,” said CEO John Challenger, in a prepared statement. “Many workers would be happy with a $25 gift certificate to a local restaurant or store.  Many would probably be happy with an extra day or two of paid vacation at the end of the year. Many are simply happy to have a job in this economy.”

A large number of companies in the United States are flush with cash right now but the same cannot be said for companies with less than 100 workers on the payroll. As we enter 2012, multiple companies in Connecticut are faced with additional costs that include higher taxes and a new mandate. The new mandate forces companies with over 50 employees on the payroll to provide sick leave. This benefit is not usually offered by a lot of companies in the hospitality sector or other companies that operate on thin budgets.

Johnson Associates Inc. released a compensation survey that found Wall Street bonuses possibly shrinking by 20 or 30 percent. Even if this shrink occurs, an average managing director could still pull down an easy $900,000 in end of year bonuses, which is a decrease from the $1.2 million at the end of 2010. The comptroller for New York state predicted back in October that smaller bonuses would prevail in 2011 after he said there was a 7.5 percent decrease in 2010.

Towers Watson released a survey at the end of the year detailing bonuses as well. Their survey showed that six in 10 companies in the country will pay executive bonuses at least as large as the ones they paid back in 2010.

“The complexity of today’s executive incentives, combined with the fact that the timing of incentive payouts and performance can vary between different forms of pay, really puts companies under the gun to make sure they have a clear and compelling rationale behind their programs,” said Doug Friske, global head of Towers Watson, in a written statement.

• Representative Tom Reed Issues Bonuses to Congressional Staff
• Fewer Companies Issued Bonuses in 2011
• Four Firms Announce End of Year Bonuses for Associates
• Bonus Memo Released for Kasowitz Benson
• Irell & Manella LLP Announce Bonuses

The Madison County Board of Supervisors has agreed to issue two extra paid vacation days to all other county employees after school employees in the county are receiving year-end bonuses. The superintendent of the Madison School District, Matt Eberhardt, said that the board approved a year-end performance incentive. The incentive is for $500 and it will be issued to all of the full-time employees. Eberhardt said that there are close to 280 full-time employees in the system and the federal grant, which is for one time, is for $150,000. He did not disclose information as to where the remaining $10,000 will go after the bonuses are handed out to employees.

Eberhardt, according to the Madison Eagle, said, “This is the first time the federal government has ever awarded money that has to be targeted toward personnel. This is one-time federal money that if not used, we have to turn back to the federal government. There was a good amount of joy and happiness when people received my e-mail (announcing the $500 bonuses).”

Eberhardt added, “I think it’s important that we all come together as a community. I think it is important to recognize folks’ efforts in a really bad economy. There were no local dollars attached to this.”

Dave Allen, supervisor, said that to do the same thing for the remaining county employees it will take close to $75,000.

“I don’t think we’ve got the money to do it. I think it’s unfortunate,” Allen said at the Dec. 20 supervisors workshop. “That being said, if I was Dr. Eberhardt (school superintendent) I’d have done the same thing he did. We need to look at something to do to recognize our appreciation for the county employees dedication to this county.”

Pete Elliott, another supervisor, voted no for giving employees a day off on Friday December 30, 2011 and no for another day off to be taken by the employee at his or her leisure within the year.

“I think we need to do something for county employees, but there are an awful lot of people out there that is going to have nothing for Christmas. I got to vote nay,” Elliott said.

The employee can take two days off within the year if he or she has to work on December 30. Lewis Jenkins, the EMS Coordinator, said he was in favor of the vacation days but wanted to make sure the board knew that it would not be free.

“Just to make sure you understand that is not free in my department. We still have to cover those hours. So what you are essentially doing is increasing 16 hours times five people in my budget in either overtime or part-time to cover those hours. Remember that when I come back in June and say I am out of money,” Jenkins said.

Eddie Dean, another supervisor, had the following to say before voting yes:

“I have a real problem the school system has put us into this bind. The money that was spent did not have to be spent until September 2012. Why we find out last Monday of some type of decision like this is hard to understand? We operate basically out of the same pool of money and I hope the board that is seated in January will remember this situation. There is no reason to think you can have a good working relationship when you do not share information. It is hard for me to say yes. It is hard for me not to say yes,” Dean said.

• Bonus Memo Released for Kasowitz Benson
• Representative Tom Reed Issues Bonuses to Congressional Staff
• Fewer Companies Issued Bonuses in 2011
• Teachers in Northern Wisconsin Awarded Bonuses
• 2011 Year-End Bonuses Thought to Shrink

Fort Pierce mayor Bob Benton has defended the city when it comes to handing out holiday bonuses to its employees for the previous two years while both St. Lucie County and Port St. Lucie have not, according to TCPalm.

“I don’t mind taking the heat for it one way or the other,” Benton said Wednesday. “We just wanted to say thank you.”

A $100 holiday bonus was recently approved by city commissioners for each city employee, which comes to a total of $35,100. This approval comes during another year of cutbacks for the city that included foreclosures and very high unemployment rates across the country. With the approval of the bonuses, each department within the city will cover the bonuses for its employees. The mayor and the city commissioners also received the bonuses.

The general fund comes from taxpayer money, and it covers the departments of city manager, the city attorney, and the police force. The general fund paid out a total of $27,600 for the bonuses. The departments that are not covered by the fund include those of building, the golf course, and solid waste. These departments paid out $7,500 in bonuses for their employees.

Benton approached city manager David Recor about the bonuses, requesting them for a second consecutive year. Benton also said that he has not received any complaints against the bonuses yet. Benton also said that the $100 bonuses are not a large amount.

Benton did say that city employees have taken furloughs the previous two years, which resulted in the employees taking a pay cut of five percent. This is unlike the workers in St. Lucie County and Port St. Lucie.

“I just feel they worked very hard, and they earned it,” Benton said. “It was a tough year for everyone.”

The city gave its employees gift cards to Publix in the past, but Benton said that money would be of more use for the families of those employees during the holiday season.

Gloria Johnson, the finance director for the city, wrote a letter to the commissioners that stated the following about the bonuses:

“The economic hardships that many of our employees are facing, and that fact that they have had to do more with less. This is a small token to show management’s appreciation and feel that it will help spread some holiday cheer,” she wrote.

According to spokesman Erick Gill of St. Lucie County, the employees there have not received their checks of $50 since 2009.

“Because (county commissioners) had to reduce staff, consolidate departments and make other tough decisions regarding the reduction of services because of the decrease in property values, which (led) to a loss of revenue for the county,” wrote Gill via email on Wednesday, “it didn’t make sense to continue offering holiday bonuses.”

• Bonus Memo Released for Kasowitz Benson
• Representative Tom Reed Issues Bonuses to Congressional Staff
• Fewer Companies Issued Bonuses in 2011
• Bonuses Worth ‘Zero’ Expected in Record Numbers this Year
• Cahill Announces Bonuses

More banks are running the risk of legal claims this year than ever before because they are going to be handing out bonuses that are equal to the number zero. The law firm of GQ Employment Law claims that even though banks are within their operating rights not to pay bonuses to City workers. In previous years, banks have made commercial decisions, paying bonuses out to mediocre staffers mostly in an effort to avoid legal problems.

What determines whether a bank’s decision to withhold a bonus is a breach of contract depends on whether the decision was irrational. It also depends on other banks coming to the same decision regarding bonuses.

Lawyers are pointing to the European financial crisis and a mucky economic outlook for reasons why bank employees are finding it more difficult to succeed in claiming whether or not a bonus is too low. They are also finding it more difficult to prove that their employer acted irrationally.

Ronnie Fox, an employment lawyer from Fox solicitors, said that he does not expect many lawsuits regarding bonuses popping up this year.

“Unless a bonus has been promised and there is a breach of that promise, bonuses are discretionary and in order to bring any claim the employee has to prove the bank acted irrationally or perversely,” he said.

“It is hard for someone who is not getting a bonus to bring any sort of claim especially if the underlying business has not performed well,” he said, according to FT.com.

A partner at the GQ Employment Law Firm, Paul Quain, had the following to say:

“This year the banks’ legal case will be more watertight than ever due to market conditions and the fact that even the Bank of England has advised banks to preserve their capital by not paying out bonuses.”

Quain also said that in the current economic climate, bankers will be more reluctant to file lawsuits related to bonuses.

“Banks were scared if they did not pay bonuses they would lose key staff but that attitude is now changing,” he added. “Banks have to be very careful when dividing their bonus pools not to spark discrimination claims. They have to have a clear rationale as to why each team member got their level of bonus. If the split even looks like it is based on gender or age, for example, the bank could have to explain its rationale in front of an employment tribunal in a dispute.”

A partner from Winckworth Sherwood, Jo Keddie, said that she has discovered a trend in 2011 involving financial institutions that are getting rid of their senior employees in the months of November and December. By removing the senior employees now, they become ineligible for bonuses that are usually paid out in the spring.

“We have seen a number of senior and middle managers let go in the last three months and I predict we will see more in January and February before bonuses are due,” she said.

• Bonus Memo Released for Kasowitz Benson
• Representative Tom Reed Issues Bonuses to Congressional Staff
• Fewer Companies Issued Bonuses in 2011
• City Holiday Bonuses Defended by Mayor
• Cahill Announces Bonuses

Kirkland & Ellis associates began receiving phone calls earlier in the week telling them about their year-end bonuses for 2011. The majority of the associates at the law firm claim that they will be receiving bonuses that are shattering the market. One source from the firm said the following:

“It is mad money. Huge year for everyone here.”

The firm relies on a black box bonus structure. A black box bonus structure means that the bonuses are based on individual associate performances and hours worked for the year. Plenty of associates are chatting about their year-end bonuses, which seem to be much, much higher than the ones issued by Cravath Swaine & Moore LLP. Even more impressive is the fact that some of the Kirkland & Ellis associates are saying they are making more than they would have made at Quinn Emanuel, which is a feat in and of itself.

There is one catch to the year-end bonuses handed out by Kirkland & Ellis. That one catch is that the year-end bonuses are inclusive of any spring bonuses. This means that Kirkland & Ellis might not hand out spring bonuses in 2012, even if there are other firms doing so.

Kirkland & Ellis values those who bill a ton of hours to clients, which is an excellent sign of the riches that can be found at the top of the Kirkland & Ellis bonus scale. Below are a couple of sources from within the law firm of Kirkland & Ellis who decided to talk with Above the Law.

The first source is a junior associate who billed 2,700 hours in 2011 and is receiving a bonus close to $40,000.  “Wasn’t expecting anything close to this high. Almost four times the Cravath scale is awesome.”

The second source is a junior associate who billed clients reasonable hours in 2011. “I’m getting almost twice the New York market. Still very pleased that I turned down multiple lock-step V10s to come here.”

Kirkland & Ellis reportedly are handing out their bonuses in two categories: the first is merit bonus and the second hours bonus. Associates were told that the two bonuses reflect the top of the market bonuses and any expected spring bonuses other firms might hand out, which means Kirkland & Ellis probably will not hand out spring bonuses.

Another source from within Kirkland & Ellis went on to say: “[s]ome other people mentioned that they were told that this is inclusive of any ‘spring’ component (but it didn’t come up on my call).”

Yet another source said that spring bonuses might be paid in 2012: “No news re: spring bonuses, but if the market pays them, I am sure K&E will follow suit.” This past spring, Kirkland & Ellis did pay spring bonuses to its associates.

• Fried Frank Harris Shriver & Jacobson Announce Bonuses
• Schulte Roth & Zabel Announce Bonuses
• Clifford Chance Announces Bonuses
• Susman Godfrey Announces Bonuses
• Paul Weiss Announces Bonuses

The law firm of Fried Frank Harris Shriver & Jacobson LLP announced that it would issue bonuses to its associates that would go as high as $52,500. The firm’s bonuses would beat the scale announced by Cravath Swaine & Moore LLP. Their maximum bonus goes up to $37,500.

The law firm, headquartered in New York, will issue the bonuses on December 29 in various amounts that do not exceed $52,500. These numbers are from a copy of the law firm’s memorandum posted on the legal blog Above the Law.

In 2010, Fried Frank released a memo announcing that it would issue bonuses that would not exceed $40,000, and that they would be issued in various amounts. The 2011 memo, similar to the 2010 memo, did not announce which associate group would receive which dollar amount.

Fried Frank announced in February that it would release spring bonuses that topped out at $20,000 in April. An internal memo sent out to associates said that the class of 2009 would receive bonuses of $7,500; the class of 2008 would receive bonuses of $10,000; the class of 2007 would receive $15,000 and the classes of 2006 and earlier would receive bonuses of $20,000.

Fried Frank delivered its spring bonuses on April 29 to its associates working in New York and Washington offices, the firm’s only two offices within the United States.

The law firm of Kirkland & Ellis LLP handed out bonuses for 2011 that were higher than the scale set by Cravath at the end of November. Kirkland associates who worked between 2,250 and 2,350 billable hours in 20211 said that they received more than twice the Cravath scale. Some associates with more than 2,700 billable hours worked in 2011 claim they received close to $40,000. This is four times the amount they would have received should their firm have followed the Cravath scale.

The year-end bonus announcements from Fried Frank and Kirkland & Ellis LLP came on the heels of the Schulte Roth & Zabel LLP announcement on Tuesday. Schulte Roth announced it would match the Cravath scale, though it will issue the bonuses in two installments; one at the end of December and one in March.

The law firm of Quinn Emanuel Urquhart & Sullivan LLP announced last week that the year-end bonuses going to its associates would exceed the bonus scale set by Cravath. Associates at Quinn Emanuel will receive bonuses ranging from $6,375 to $62,000. Those bonuses will be based on seniority and the number of hours worked in 2011. Sullivan & Cromwell LLP, Debevoise & Plimpton LLP, Cleary Gottlieb Steen & Hamilton LLP, Simpson Thacher & Bartlett LLP and Clifford Chance LLP are other law firms that have matched or topped the Cravath bonus scale for 2011.

• Kirkland and Ellis Bonuses bring with them a Happy Holiday
• Schulte Roth & Zabel Announce Bonuses
• Quinn Emanuel Urquhart & Sullivan Announce Bonuses
• Clifford Chance Announces Bonuses
• Susman Godfrey Announces Bonuses

The law firm of Schulte Roth & Zabel LLP has announced that it will match the bonus scale set by the law firm of Cravath Swaine & Moore LLP earlier this month. The announcement of the bonus scale for Schulte Roth & Zabel LLP comes with a bit of a twist though. The twist is that half of the bonuses will be paid in the month of December and the other half of the bonuses will be paid in the spring of 2012, according to Law360.

The associates working at Schulte Roth will receive the same bonus amount, depending on how many years they have been with the firm, as the scale set up by Cravath. That scale includes $7,500 for first-year associates and $37,500 for seven-year associates. There is another caveat, Schulte Roth will also issue $10,000 bonuses to associates who worked 2,300 billable hours this year and $20,000 bonuses to associates who worked 2,500 billable hours this year.

The first half of the bonuses will be paid to associates on December 29 and the other half of the bonuses will be paid to associates on March 15, according to the law firm.

The bonus scale announced by Cravath back in November has become somewhat of a benchmark for the legal industry this year. Second-year associates will be receiving bonuses of $10,000. Third-year associates will be receiving bonuses of $15,000. Fourth-year associates will be receiving bonuses of $20,000. Fifth-year associates will be receiving bonuses of $25,000. Sixth-year associates will be receiving bonuses of $30,000. The most senior-level associates at Cravath are the ones hired in 2004.

The law firm will also issue late spring bonuses, for 2011, to its associates. The belated spring bonuses will range from $2,500 to $20,000, for associates hired between 2002 and 2010. The belated spring bonuses will be issued in chunks as well; with the first payment being issued in December and the second payment being issued in March. Associates hired in 2009 will receive a spring bonus of $7,500; associates hired in 2008 will receive a spring bonus of $10,000; associates hired in 2007 will receive a bonus of $15,000; and associates hired from 2002 to 2006 will receive bonuses of $20,000.

In recent weeks, there have been a handful of law firms that topped the bonus scale set forth by the firm of Cravath. Those firms include Sullivan & Cromwell LLP, Debevoice & Plimpton LLP, Cleary Gottlieb Steen & Hamilton LLP, Simpson Thacher & Bartlett LLP and Clifford Chance LLP. Clifford Chance LLP reportedly announced that they will be handing out bonuses of $42,500 for associates hired in 2003 or earlier.

The bonus scale announced by Cravath for 2011 closely matches the scale they used in 2010, whch were exactly the same for each associate level except for the seventh-year level, which received lower bonuses in 2010.

• Kirkland and Ellis Bonuses bring with them a Happy Holiday
• Fried Frank Harris Shriver & Jacobson Announce Bonuses
• Clifford Chance Announces Bonuses
• Susman Godfrey Announces Bonuses
• Paul Weiss Announces Bonuses

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.

• Irell & Manella LLP Announce Bonuses
• Fried Frank Harris Shriver & Jacobson Announce Bonuses
• Weil Gotshal & Manges Announce Bonus Increase
• Paul Weiss Announces Bonuses
• Proskauer Law Firm Announces Year-End Bonuses

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.

• Quinn Emanuel Urquhart & Sullivan Announce Bonuses
• Paul Weiss Announces Bonuses
• Morning Roundup
• Morning Roundup
• Kirkland and Ellis Bonuses bring with them a Happy Holiday

The law firm of Clifford Chance LLP announced on Wednesday that the firm would issue $42,500 year-end bonuses to eighth-year associates and above. This scale matches that of a new scale established y rival law firms last week across the country, according to Law360.

The new bonus scale was set by Debevoise & Plimpton LLP, Cleary Gottlieb Steen & Hamilton LLP, Simpson Thacher & Bartlett LLP and Sullivan & Cromwell LLP. These firms announced last week that they would be issuing bonuses for the class of 2003 and earlier valued at $42,500.

For the most part, the bonus scale for Clifford Chance match the bonus scale set forth by Cravath Swaine & Moore LLP at the end of last month. Their bonuses range from $7,500 for first-year hires to $37,500 for seventh-year associates. The most senior level associates at Cravath are those that were hired in 2004.

From its headquarters in New York, Akin Gump Strauss Hauer & Feld LLP announced on Wednesday that their firm would hand out year-end bonuses to its associates but did not elaborate as to the value of those bonuses.

“As we have done in the past, Akin Gump is matching the market bonus in [New York],” 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.”

Susman Godfrey LLP announced on Tuesday that its firm would be handing out bonuses at year’s end to its associates ranging from $40,000 to $110,000. This amount is slightly lower than last year’s bonuses, which is a result of its earnings dropping to 95 percent of what the firm earned in 2010.

The bonuses from Susman Godfrey LLP have already been paid to the associates and were based on seniority and hours worked. Even though the overall range of the bonus scale took a hit this year, individual associates should earn more than they did last year. The standard rate for seventh-year associates is still beat out by the bottom end of the Susman Godfrey LLP scale.

The bonus scale set at $42,500 will also be matched by Cadwalader Wickersham & Taft LLP, which made the announcement this week. Their announcement came one day after the announcement from Paul Weiss Rifkind Wharton & Garrison LLP announced their bonuses.

The Cravath bonus scale for 2011 closely matches its bonus scale from 2010, but differs just a tiny bit. Law firms across the country have made announcements for the past couple of weeks about their year-end bonuses for associates. It is expected that more law firms across the country will be announcing bonus plans within the next week as we creep closer to 2012.

• Kirkland and Ellis Bonuses bring with them a Happy Holiday
• Fried Frank Harris Shriver & Jacobson Announce Bonuses
• Schulte Roth & Zabel Announce Bonuses
• Susman Godfrey Announces Bonuses
• Paul Weiss Announces Bonuses

The powerful litigation law firm of Susman Godfrey announced this week that its associate bonuses will rival those of other law firms across the country. The law firm issued bonuses in 2010 that rivaled those of other firms across the country as well. The holiday party thrown by the law firm of Susman Godfrey is legendary, even though the party is not that old, and it is catered by renowned chef Daniel Boulud, according to Above the Law.

Founding partner Stephen Susman provided the media with the bonus information. The law firm is handing out bonuses of $40,000-$100,000 for its associates. This bonus scale rivals those of Cravath and Sullivan & Cromwell, which begin at $7,500 and end at $37,500 for Cravath and $42,500 for Sullivan & Cromwell.

Just like 2010, the very bottom of the Susman bonus scale is higher than the top of the Cravath bonus scale. By looking at these scales, you can figure that the most-junior level Susman associates are bringing home larger bonuses than the most-senior level associates at Cravath.

According to some associates at Susman, they are incredibly happy with their year-end bonuses for 2011. Some of them are bringing home anywhere from $30,000-$40,000 more than their colleagues over at Cravath.

It seems that the policy on compensation for associates at Susman deals with spreading the wealth to those who aided in generating that revenue for the law firm. Susman told the media that the law firm had an excellent year financially in 2011 and he wanted the bonuses handed out to associates to reflect that financial success of the firm. The firm has a track record of excellent bonuses, as this is not the first time bonuses such as this size were handed out.

The law firm has 90 lawyers to its name and is known in the industry for the large bonuses it hands out. Back in 2000, the law firm handed out bonuses to their associates that equaled their salaries. The bonuses ranged from $114,000 to $165,000. In 2010, the associates at Susman received bonuses that ranged from $45,000 to over $100,000. The firm has offices in Dallas, New York City, Seattle and Los Angeles.

The firm also announced that it had promoted two new partners. Two associates in the firm were eligible to become partners and they were awarded accordingly. The two new partners are Robert Safi and Chanler Langham, both residents of Houston. Safi and Langham both received$110,000 bonuses for becoming partners, while other associates on the partner track received bonuses based on their quality of work, their hours worked, and their seniority.

Safi is a graduate of the University of Texas School of Law and was a clerk for Judge Vaughn Walker. Langham is a graduate of the Columbia Law School and was a clerk for Judge Vanessa Gilmore.

• Kirkland and Ellis Bonuses bring with them a Happy Holiday
• Fried Frank Harris Shriver & Jacobson Announce Bonuses
• Schulte Roth & Zabel Announce Bonuses
• Clifford Chance Announces Bonuses
• Paul Weiss Announces Bonuses

In 2010, the law firm of Cravath Swaine & Moore low-balled the market for bonuses, which was then steamrolled by the firm of Cahill Gordon. The low bonus scale set by Cravath last year was matched by the firm this year for the most part. Cahill is beating the scale set by Cravath again this year, but they are going one step further with their bonuses.

In 2011, Cahill is issuing a special bonus payment to its employees in their next paycheck. This bonus payment is coming before the company even hands out its year-end bonuses, which Cahill agrees Cravath has set at a low mark, simply by handing out bonuses much higher than the Cravath scale.

So now you must be wondering how special these early bonuses are?

The early bonuses are so special that Cahill is handing out $10,000 to every associate in each class year with their December 15 paycheck. Talk about having a Happy Holiday. This bonus in the December 15 paycheck will be in addition to the year-end bonus handed out by Cahill before December is complete. Experts believe that the year-end bonuses from Cahill will be just as good, if not better than, the Cravath bonuses. The associates at Cahill should consider the December 15 bonus as a down payment for the total bonus coming in two weeks.

Cahill did not send out memos to its associates about the bonuses. Instead, the firm called its partners to tell them of the news yesterday, according to Above the Law.

Experts believe that Cahill associates will be receiving year-end bonuses that beat the scale set by Cravath to go on top of the $10,000 they are receiving in their December 15 paychecks. Some of the Cahill associates received bonuses that totaled $35,000 more than the Cravath bonus for relevant class year in 2010. Representing the floor for Cahill associates is the Cravath scale plus the $10,000 the associates are receiving in their paychecks on December 15. There is no definite answer as to the Cahill scale but the bonuses could always get better.

In the bonus market of 2010, the majority of Cahill associates fared better than their colleagues at Cravath because of their spring bonuses. Cahill also pays its associates a mid-year bonus, with the last one being paid in June, ranging from $5,000-$25,000. As you can imagine, associates at Cahill are unbelievably happy right now. Here is the money Cahill associates are expected to pull down in 2011:

Associates will be receiving $10,000 now, a Cravath-like bonus at the end of the year. They also received $20,000 in June if they were hired in 2006. The year-end bonus should be around $25,000, which means an associated hired in 2006 will have pulled down $55,000 this year, which seems like a pretty good year.

• Two More Law Firms Jump on Cravath Bonus Bandwagon
• Morning Roundup
• Milbank Falls In Line On Bonuses
• Morning Roundup
• Bonus Season has Begun

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.

• Kirkland and Ellis Bonuses bring with them a Happy Holiday
• Fried Frank Harris Shriver & Jacobson Announce Bonuses
• Schulte Roth & Zabel Announce Bonuses
• Quinn Emanuel Urquhart & Sullivan Announce Bonuses
• Weil Gotshal & Manges Announce Bonus Increase

Four more law firms have announced that they will hand out year-end bonuses of $42,500 for eighth-year associates and above, according to Law360. These four firms will be extending the bonus scale that was first established by the law firm of Cravath Swaine & Moore LLP and has since been matched by a couple of other firms in the United States. The four firms that announced the year-end bonuses include Debevoise & Plimpton LLP, Cleary Gottlieb Steen & Hamilton LLP, Simpson Thacher & Bartlett LLP and Sullivan & Cromwell LLP. These four firms will issue bonuses to their associates from the class of 2003 and earlier, which was reported by the legal blog of Above the Law.

The remainder of the pay scales for year-end bonuses to be handed out by the firms of Debevoise, Gottlieb, Cleary and Sullivan match the year-end bonus scale of Cravath. First-year associates will be receiving $7,500 while seventh-year associates will be receiving $37,500.

Also entering the fray is Kay Scholer LLP, announcing it will hand out year-end bonuses that match the Cravath bonus scale for its associates who work at least 1,950 hours in a year. Any associates at Kaye Scholer LLP that work at least 2,400 hours in a year will receive a bonus that tops out at $57,500.

Ever since the bonus scale of Cravath became public information last month, the list of firms matching that scale has grown steadily over the past month.

Another firm that announced it would hand out bonuses based on the Cravath scale is that of Shearman & Sterling LLP. Their announcement was made one day after that of Proskauer Rose LLP announced they would also match the bonuses of Cravath. The announcement from Proskauer Rose LLP followed announcements from Milbank Tweed Hadley & McCloy LLP and Skadden Arps Slate Meagher & Flom LLP earlier this month.

The bonus scale released by Cravath for 2011 closely matched its scale used in 2010, which were the same for each associate group except for those in their seventh year with the firm. Associates working with the firm in their seventh year in 2010 received a bonus of $35,000. There were spring bonuses of $20,000 handed out by Cravath in 2011 for associates who were hired from 2004 to 2006. Associates from 2007 were issued bonuses of $15,000 and anyone who started later than that were given bonuses ranging from $2,500 to $10,000.

Cravath has been the leader in the bonus category over the past couple of years, as other firms have followed their lead. For example, when Cravath announced in January that it would be issuing spring bonuses, multiple other firms decided to do the same thing. Industry experts expect that a couple more law firms will announce end of year bonuses for their associates prior to the end of December.

• Representative Tom Reed Issues Bonuses to Congressional Staff
• 2011 Year-End Bonuses Thought to Shrink
• Morning Roundup
• Morning Roundup
• Bonus Season has Begun

Cravath, Swaine & Moore LLP usually sets the tone for law firm end of year bonuses in the legal world, but this year they will be dolling out bonuses at the same amount as 2010. These are signs are a troubling economy, with the legal world not being exempt from it either. The bonuses for 2011 are just a little bit higher than the ones handed out in 2009 but are still much less than the ones handed out in 2007.

Some of the youngest and least experienced members of law firms are associate attorneys, ones who rely on those yearly bonuses to help pay debts accrued from law school tuition. Cravath was the first major law firm in the country to announce what its bonus structure would be at the end of the year.

Lawyers working at Cravath for close to seven years, the most senior lawyers of the firm, will take home close to $37,500 in the bonus. This is an increase of $2,500 from the 2010 bonuses. Lawyers working with the firm for a handful of months, junior associates, will bring home $7,500, which is the same bonus amount as in 2010. The bonuses for lawyers in between those two ranks will depend each lawyer’s seniority and will fall in that price range.

First-year associates make annual salaries of $160,000 while senior associates make close to $265,000 per year. Profits have risen at Cravath in 2009 and 2010, but the information about the 2011 bonuses does not help experts understand what type of year Cravath endured. Peter Zeughauser is a law firm consultant and he had the following to say:

“It could just be that the firm has decided it wants to do other things with its money, like prepay some expenses,” said Mr. Zeughauser. “This year has steadily gone downhill for a lot of firms. Frankly, it’s gotten worse each quarter.”

In 2010, there were some complaints from associates working at Cravath, mainly about the size of the bonuses handed out, because they increased marginally from 2009. Complaints also included the fact that the bonuses were still lower than the ones handed out in 2007. Some law firms paid out bonuses as high as $60,000 in 2007, with the Cravath firm paying out $50,000 bonuses in 2007.

Law firms are made up of two types of lawyers; associates who are salaried and partners, who each own a stake in the law firm. The American Lawyer Magazine said that in 2010, the law firm made $3.2 million in profit-per-partner. The magazine also said that this number was a 16.8 percent increase from the number in 2009. Law firms across the country are lowering their bonuses in 2011 in an effort to save money instead of cutting staff members from the payroll. Some firms are completely ruling out issuing bonuses in 2011, a move that is not unexpected.

• Kirkland and Ellis Bonuses bring with them a Happy Holiday
• Fried Frank Harris Shriver & Jacobson Announce Bonuses
• Schulte Roth & Zabel Announce Bonuses
• Quinn Emanuel Urquhart & Sullivan Announce Bonuses
• Weil Gotshal & Manges Announce Bonus Increase

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
• Morning Roundup
• Skadden Follows Cravath’s Lead for Bonuses
• Former Texas Solicitor General Dies in Plane Crash
• Bonus Season has Begun

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
• Morning Roundup
• Bonus Season has Begun
• Two More Firms Match Cravath on Bonuses
• Cahill Announces Bonuses

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…

• Crowell & Moring LLP & University of the District of Columbia David A. Clarke School of Law Establish Took Crowell Institute for At-Risk Youth
• What Will China Do?
• Bonus Season has Begun
• Morning Roundup
• Wilmer Hale Announces a Plan for Leadership Succession

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.

• Morning Roundup
• Morning Roundup
• Boies Schiller Leads the Bonus Race
• Is There a New Standard for Bonuses?
• Two More Firms Match Cravath on Bonuses

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.

• Morning Roundup
• Bonus Season has Begun
• Hughes Hubbard Thaws Salaries, Issues Bonuses
• Dechert Pays Bonuses, Cuts (a few) Salaries
• Weil Gotshal Bonuses

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.

• Bonuses and Thaws at Wilson Sonsini
• Hughes Hubbard Thaws Salaries, Issues Bonuses
• Salary Thaw and Bonuses at Hogan & Hartson
• Partial Salary Thaw at Fulbright
• Morning Roundup

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.

• Weil Gotshal Bonuses
• Bonus Season has Begun
• Salary Cut at Pillsbury Winthrop
• Morning Roundup
• Milbank Falls In Line On 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.

• Bonus Season has Begun
• Morning Roundup
• Morning Roundup
• Milbank Falls In Line On Bonuses
• Salary Cut at Pillsbury Winthrop

Davis Polk & Wardwell is an international law firm headquartered in New York. The firm employs more than 700 attorneys and is primarily known for its corporate, litigation and tax practices.

• Two More Firms Match Cravath on Bonuses
• Cahill Announces Bonuses
• Morning Roundup
• Milbank Falls In Line On Bonuses
• Morning Roundup

• Morning Roundup
• Morning Roundup
• Bonus Season has Begun
• Milbank Falls In Line On Bonuses
• More Bonuses