Associate Bonus Watch: Simpson Thacher!!!
We have to hit the road; we're going out of town. So this is the last you'll hear from us in a little while. If you have new bonus announcements to pass along, please email us, or note them in the comments to this post. We will follow up when we return.
But there's no need to tell us about the Simpson Thacher & Bartlett bonus announcement. We already have it, and we've reprinted it after the jump. Thanks!
SIMPSON THACHER & BARTLETT LLP -- 2007 ASSOCIATE BONUS MEMO
From: Ruegger, Pete
Sent: Wednesday, October 31, 2007 3:53 PM
To: Associates and Counsel
Subject: 2007 Bonuses
Simpson Thacher & Bartlett llp
MEMORANDUM TO ALL ASSOCIATES AND COUNSEL
On behalf of the partners of the Firm, I am pleased to announce both a Special Bonus for 2007, as well as the year-end bonuses for associates and counsel. Associates in good standing will be paid as follows:
Year End Bonus Special Bonus
Class of 2007 $35,000 (pro-rated) -
Class of 2006 $35,000 $10,000
Class of 2005 $40,000 $15,000
Class of 2004 $45,000 $20,000
Class of 2003 $50,000 $30,000
Class of 2002 $55,000 $40,000
Class of 2001 $60,000 $50,000
Class of 2000 $65,000 $50,000
Class of 1999 $65,000 $50,000
Bonuses for counsel and other attorneys will be determined on an individual basis and communicated separately. Special Bonuses will be paid on November 30, 2007 and the year-end bonus will be paid on December 28, 2007. Associates and counsel who were on leave or worked part-time during any part of this year will be eligible for a pro-rated bonus.
On behalf of the Firm, thank you for your continued dedication and professionalism. You have all contributed to the Firm's extraordinary success this year.
Pete Ruegger
October 31, 2007
(65) Comments
First!!!
SECOND!
Is there any precedent for firms paying a "Special" bonus in additon to the regular bonus? Are this year's bonuses the largest ever for V10 law firms?
Recently divulged by a Paul Hastings partner: "We will do it (i.e., match Cravath's year end + special bonus) if other firms do it."
Dear Paul Hastings Partner(s),
Please note that other firms are matching Cravath. Please match them. By the way, getting the special bonus in time for Xmas presents would be excellent.
Sincerely,
Paul Hastings Associate
Does anybody know if Simpson has announced??? Somebody???
Paul Hastings??? If they match, everyone should match!
If a third tier (or is it fourth) firm like PH matches, this is a sign that Cravath's bonuses were not enough. It is insane to think that firms with PPP of $3,000,000+ would pay the same as firms like PH, when not even the lowest ranked students at HLS or Columbia would consider working.
11:00 -
LOL. The lowest ranked HLS and/or CCN grads couldn't work at Paul Hastings if their dad ran the place. I have no ties there, but they're 31 on Vault, they're 4th for so cal-based firms, and they're 28th on PPP at $1,605,000. And Cravath's were a whopping 15k over 3 mil.
I do, however, agree that Cravath should be higher considering the whopping PPP.
All firm partners would rather take a huge hit in pay rather than admit that the firm they own isn't top tier. All to Cravath!
11:08 -
"LOL. The lowest ranked HLS and/or CCN grads couldn't work at Paul Hastings if their dad ran the place. I have no ties there, but they're 31 on Vault,"
You obviously have no idea how ridiculously good the job prospects at CCN are. Paul Hastings recruiters will bend over backwards for CCN kids in the bottom quarter of their class.
Any word on whether this will trickle down to the Potomac?
Firms with NY and DC offices really can't justify a $25k disparity for second years, can they?
YoMama to Anon/Loserville times two!!!!!!
Bonuses should be significantly higher in NYC than anywhere else in the country. If DC firms match, I predict another base salary raise in January.
Any idea when Latham and Skadden typically announce bonuses? If Latham comes in below market again, that might make my decision for me. Not that a couple grand is the deciding factor. I just think it's indicative of other things going on.
Do people think these bonuses are a one time thing like the term "special" suggests? Will these firms feel forced to offer the same bonuses next year???
What is this about Latham coming in below market on bonuses? Where did you find this info? Thanks!
Do these bonuses mean that NY will not raise salaries this year? Is this special bonus an alternative to all office across the board raises in pay?
NY to 160 + special bonus??
Latham wasn't below. They paid at least market in NY, and often time more than that. First years got as high as $49K in NY (only 2 of them). The supermajority was market. Latham paid less in offices outside NY (I think 27,500 instead of 35 to first years). They have a minimum requirement so interesting to see how they come out this year if they are as slow as we are.
Skadden in the last few years has been a follower, just under a week after the market leader.
I work at PH and we ding people from Harvard and Columbia all the time. The standards vary greatly by office. Stanford and Boalt are just as prestigious in California as Harvard and more so than Columbia in California. We couldn't give two shits about someone at the bottom of their class at Columbia, in fact if you're near the middle, you likely wouldn't get an offer in California.
The NYC office is a freaking hell hole, so maybe they would bend over for CCN candidates, but I doubt it. There are strict grade cut-offs that are firm-wide and you need the office recruiting partner's approval before an exception.
PH in NYC will match these bonus levels. They are making a push to break the top 10 and want to attract that level of talent. The rest of the offices will probably get half that, unless Gibson, OMM, and Latham match then everyone will get that level. Except Atlanta which the firm is on the verge of closing for lack of business. Those sorry bastards are lucky to have jobs.
PHJW Ass., April Fools day is April 1st. Not November 1st.
Latham typically doesn't announce bonus until January or February, and the bonus is ratings and hours based. Outside of NY, if you are a low biller, you'll get a below-NY bonus. If you're a high biller, you get an above-NY bonus.
PHJW Ass., I'm at Columbia and in the bottom third of my class, and I have an offer from PH in California. So do several of my classmates in the middle and bottom third of my class at CLS. You have no idea what you're talking about.
PHJW NY is a complete crapfest. Can't speak for other offices, but for anyone considering the NY office: STAY FAR AWAY!
A Paul Hastings match is great news. It signals to all top 30 firms what it takes to remain there and increase their positioning.
Instead of debating offers let's enjoy that many of our top 30 firms will now also match.
LOL at 7:24: " Stanford and Boalt are just as prestigious in California as Harvard and more so than Columbia in California."
Boalt as prestigious as Harvard? More prestigious than Columbia? ROFLCOPTERS!!! Keep drinking the coolaid, broseph. Paul Hastings is a toilet. I don't care what market you are in, PH is never better than somebody's 6th or 7th choice, and usually it's probably closer to like 10 or 15.
The city is abuzz with rumors of who will announce today. I can say this ... there will be several major announcements!
Paul Weiss and Shearman look ready to announce. Skadden and S&C are a little unsure on timing, as each has their own little wrinkle to work out. Although expect late-day news from Skadden, with S&C following tomorrow.
Coooooooooome on Boston firms!
Alston to Kibbles & Bits!!!
Yeah, what about Boston firms? How does that typically work?
Can anyone list the v20 firms that have minimum hour requirements?
Can anyone tell me how Cahill compares compensations wise with the bigwigs like Cravath, Skadden, etc.? Thanks
NY BigLaw is going to match, peripheral markets will not get as much (suck it). Now, can we move on, you greedy bitches?
This is fucking boring. ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
Most of the top Boston firms have a presence in NYC, and particularly Wilmer, Ropes, and Goodwin, which each have significant practices there. For those reasons, they typically match Boston within about 10k on salaries and bonus.
The "special bonus" is a new beast, but I'm guessing that it will have to be met by the three firms above because the NYC associates at these offices are not going forget about it, and it would be too big a discrepency for Boston associates not to complain mightily about.
As with most pay raises in Boston, Ropes & Gray will be first to move because they have too many Harvard graduates (and want to continue to attract them) to not be the first to move (they also are likely to be closest to the NYC numbers, if history shows us anything). Wilmer will be next to go (grudgingly so), and then Goodwin, probably a full week after Wilmer, will finally get their very slow moving compensation team off the fence and into the game.
It is always curious to me why a different top firm than Ropes doesn't seize the opportunity to move first. It's totally low risk because it's absolutely going to happen anyway. The only difference is that you would get credit for being a perceived market leader on compensation (rather than a follower). That has got to be valuable given where we are in the recruiting season.
WHAT ABOUT CLEARY?!
WHAT ABOUT CLEARY?!
I think its funny how everyone gets up in arms how NYC associates should be paid more because of the cost of living...SF is now the most expensive place to live in the country.
And you don't hear the west coasters whining like you NYC bastards. Suck it up. You chose to live there.
um, there is no way that SF is more expensive than NYC. i live in NYC. my brother lives in SF and i visit him there all the time. so i know this for a fact.
What happened to Milbank's Vault ranking this year? Did leading the charge on '06 bonuses buy them any "prestige"?
It would be interesting to know what these relatively large bonuses do in terms of junior partner compensation. Certainly the junior partners won't take home less than senior/mid-level associates, right? Or am I wrong? So, since the money has to come from somewhere (more senior partners), is the net result compression among the partner ranks or what?
10:25 - get your facts straight, a-hole. NYC has the highest COL --
Cost of Living - Top 20 Metropolitan Areas
Metro Area Index
Houston 88.2
Dallas 92.5
St. Louis 93.4
Atlanta 95.3
Detroit 95.9
Tampa 99.8
U.S. 100.0
Phoenix 101.7
Chicago 111.7
Miami 116.3
Riverside, CA 118.0
Baltimore 119.7
Philadelphia 124.8
Boston 132.8
Washington, D.C. 136.9
Los Angeles 145.2
San Francisco 172.1
New York (Manhattan) 213.7
Seattle n/a
Minneapolis n/a
San Diego n/a
Source: "Cost of Living Index" Council for Community and Economic Research, 1st Quarter 2007.
7:24 - PH in Atlanta closing for lack of business? What's the story on that?
Cravath paid its seventh years $100k in 2000. So PPP doubles over the last seven years and this time the boom year bonus for seventh years goes up five grand after taxes. THANKS FOR NOTHING.
OK, actual question: looks like the firms who have announced so far plan to pay out before the end of the (calendar) year. my firm's year for billables is the calendar year--meaning, you'd have to wait until the year is actually over to know how many hours you billed, to know whether you'd get exactly the market bonus, or more or less. are the firms paying before the end of the year simply on a different cycle, or are these bonuses for all associates in good standing, or what?
10:59, it looks like your list limits NYC to Manhattan, while placing no such limits on SF metro area. Don't know which is more expensive, but if you limit SF to the same Manhattan-type desirable areas, I think it's a lot closer.
And check out Houston and Dallas bringing up the rear on that list, but still paying 160. And I think Skadden and Weil pay NYC bonuses in Texas. That's unbelievable.
11:19 - Texas firms may start at 160, but after that there is hella compression. Making 160 as a first year is great. Making 195 as a sixth year, not so much.
Of course that doesn't apply to Skadden and Weil, but their offices are tiny
To all the posters with repeated questions on hours, can you please READ THIS:
Cravath and all the firms that have matched it pay ALL compensation (including bonus) on a LOCKSTEP basis. That means, NO BILLABLE TARGETS. So there is no differen accounting cycle, there is no question of waiting till January because the total hours will only be known on Dec 31, etc.
All firms that pay bonus on a lockstep basis (coincidentally, the top firms) will almost surely match Cravath.
To 9:52:
Cahill matches the top of the market without regard to hours. So Cahill associates are compensated the same as those at Cravath, etc.
Yes, but at Cravath do you get the special bonus if you don't make hours?
11:46
Yes. The term "special bonus" is used just to ensure that the firm can decline to pay it in subsequent years, without the psychological embarrassment.
All firms that pay a lockstep bonus, will pay the special bonus, irrespective of hours because there ARE NO target hours.
Paul, Hastings in Atlanta is not closing. I have worked here for years. The office is successful and has more attorneys here than it has ever had before. Rumors such as this are ridiculous and the poster should run to the nearest theater and yell "fire".
What Ph Assoc. says about PH in Calif. having firmwide grade cutoffs for even the top schools is correct. Unfortunate, but correct. There's a lot of UCLA / USC / Boalt types who like to hire their own. There's a lame perception that you are subpar if you're in the bottom half / quarter of a class -- even a good one.
Paul Weiss announced. First!
11:19
"hella compensation" means there is lots more compensation in the future, not that it slows down. regardless, it doesn't really work here anyway and should be reserved for comments like "brittney's new single is hella good"
What is CCN?
I'm a PH associate based in DC, but I work with people in PH Atlanta all the time. PH Atlanta is historically among the top 3 most profitable offices in the ENTIRE firm, dumbass. It may not be for the fiscal year 2007, but it isn't close to being shut down or in any way downsized. True, they may make less than the other offices, but that's hardly a statement that they are struggling. In fact, every single person I've worked with in that office has been good and competent- more than I can say for some elsewhere.
Check your facts before you post.
If it seems that all "top" firms pay lockstep bonuses, how do other high ranking firms get away with having min hour requirements? Aren't they immediately degrading themselves?
Yea, how can the Latham bonus "match" the lockstep firms' bonuses since Latham isn't lockstep but rather gives bonuses based on hours billed and ratings? What's the basis of comparison here?
2:02
Not "all top firms" pay lockstep bonuses. In fact, very few firms do this - Cravath, Sullivan, DPW, Simpson, Skadden, Cleary, Debevoise and a few more that I can't think of right now. But certainly, very few.
Just curious--How is it that bonuses are not treated as supplemental income and subjected to the federal flat tax (which I assume is why many people think that these bonuses get taxed more heavily)? Is it simply because firms choose to treat bonuses as regular salary?
But offering lockstep bonuses is surely a way of getting ahead of the pack?Unless, lockstep firms make sure all their associates get the hours that min hour firms officially require. And minimum hour requirement firms offer the possibility of choosing quality of life over a measly few thousand bucks. In which case, the second option may be better. Anyone have any comment on qol issues at lockstep v. min hr firms?
is it possible lockstep bonus firms work their assoc harder to guarantee that they would satisfy a min req in any case? In which case, the possibility of choosing quality of life over bonus exists only at min hr req firms?
In other words, do lockstep firms offer harder jobs?
Keep in mind that even at supposed lockstep firms, one usually has to be in "good standing" to get the full bonus, good standing is determined by both reviews and billable hours.