Biglaw, Money, Skaddenfreude

West Coast Pay Raise Watch: Here's the MoFo Memo

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As we reported on Friday, Morrison & Foerster recently announced a firm-wide increase in associate base salaries. But the MoFo raise came with a catch: a modification to the firm’s bonus structure (for associates outside New York).
Here’s the relevant language from the MoFo memo, which we recently got our grubby little hands on:

This increase in base compensation [for non-NYC offices] will, however, replace the contribution bonus that was otherwise payable for those who finished the year in good standing with 1950 billable/pro bono/firm legal service hours. For any associate otherwise eligible for that contribution bonus who ends the year making less than he or she would have under the former base compensation plus contribution bonus model, the firm will make up the shortfall in January of 2008. Additional details about the elimination of the 2007 contribution bonus will be posted on the Professional Development portal next week.

One source who sent this to us stated:

If you could use this memo to get your hands on other memos, particularly regarding what’s happening with bonuses, that would be quite helpful. I’m especially curious about Orrick’s alleged bonus structure, as reported in the comments section of your post, “West Coast Pay Raise Watch: MoFo sees Orrick’s San Francisco and Raises it a Sacramento.” Thanks.

So if you have a memo (or memos) explaining bonus structures at places like Orrick and O’Melveny, which recently raised associate salaries, please send ’em our way. It would be helpful to compare how they stack up with Morrison & Foerster.
For those of you who are curious, the complete MoFo memo appears after the jump.


MORRISON & FOERSTER ASSOCIATE PAY RAISE MEMO
The partners of this firm are fortunate to be supported by the best talent in the profession. This fact informs and directs our decisions regarding attorney compensation. Accordingly, on behalf of the partners, I am pleased to announce that, effective May 1, 2007, we will have the following, uniform base compensation for associates in all domestic offices.
Class of 2006: $160,000
Class of 2005: $170,000
Class of 2004: $185,000
Class of 2003: $210,000
Class of 2002: $230,000
Class of 2001: $250,000
Class of 2000: $265,000
Class of 1999: $280,000
This change has no effect on U.S. associates practicing in Asia who, together with the New York associates are already on this schedule, nor does it affect London or Brussels-based associates, Hong Kong solicitors, or Ito & Mitomi associates.
This change has no effect upon the New York associate bonus system.
For non-New York domestic offices, this change has no effect on the hours bonuses or the merit bonus program. This increase in base compensation will, however, replace the contribution bonus that was otherwise payable for those who finished the year in good standing with 1950 billable/pro bono/firm legal service hours. For any associate otherwise eligible for that contribution bonus who ends the year making less than he or she would have under the former base compensation plus contribution bonus model, the firm will make up the shortfall in January of 2008. Additional details about the elimination of the 2007 contribution bonus will be posted on the Professional Development portal next week.
This increase will be reflected in the May 31, 2007 paycheck retroactive to May 1. For the few of counsel for whom this change may be relevant we will be talking with you individually in the next two weeks.
Thanks for all you do to help us deliver results for our clients.
Keith C. Wetmore
Chair
Morrison & Foerster LLP

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