Alston & Bird, Biglaw, Bonuses, Money, Skaddenfreude

Who Else Is Paying Senior Associate Bonuses? Bueller, Bueller...

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After Sullivan & Cromwell announced its new bonus program for senior associates, we received a bunch of messages like this one:

Can you please do a thread to see if other NYC firms have matched or plan to match the S&C recent bonus pool system for senior associates? Seems like there’s been no reaction to this by any other firms.

Does this mean the other firms no longer offer top-of-the-market compensation for senior associates?

We’re not aware of any other New York firms matching the S&C move. But we hear that Skadden is… establishing a committee!
More after the jump.


From a source at Skadden:

Below is the text of an e-mail that was sent out to all attorneys at Skadden. I found this announcement to be of interest for the following reason:

First, whereas Sullivan creates a senior-level, profit-sharing-like bonus, to provide at least some economic incentive for associates to stay, Skadden simply forms a committee to talk about retention problems.

Second, I found the following language especially interesting: “[w]e remain committed to attracting and retaining the most talented attorneys in the world. And we look forward to working with you as we determine how we may better accomplish our goals.”

What is so complicated about attracting and retaining top talent? The answer is simple and does not require a committee: stop following the market and stop being cheap. The quickest way to attracting and retaining the best associates is through their wallets and by being a leader in compensation (both salary and bonus) and not merely a procrastinating follower….

Third, Joe Flom is actually on this committee!

Here, with the committee members’ extensions removed, is the text of the e-mail:

We are very pleased to announce the establishment of the Associate Development Task Force (ADTF), a committee of twelve partners from offices throughout the Firm, whose mission is to foster and promote associate development goals in accordance with the initiative which was endorsed at the annual partners’ meeting earlier this year.

Our priority is to provide each attorney at the Firm with a positive and rewarding professional experience in an environment that fosters learning, communication, excellence, respect and collegiality. I have attached a list of the partners on the Associate Development Task Force, including their office locations and extensions. The Task Force is chaired by Wally Schwartz who is the head of the New York Office and Practice Leader of the Real Estate group. We hope that you will feel free to communicate directly with the committee members.

A critical step in achieving the ADTF’s objectives is to increase our understanding of the views of associates toward the Firm and their jobs. To help us with this, we have engaged Right Management, a global human resources consulting firm, to work with us to design, administer and analyze the results of a firm-wide survey.

Prior to launching the firm-wide survey, we will conduct several focus groups with a random selection of associates from the Firm to help shape the specific content of the survey. All information collected at the focus groups and through the on-line survey will be totally confidential. Right’s involvement in data collection and analysis will help to ensure this, as no one at the Firm will be seeing any individual data, only aggregate data.

As this initiative proceeds, we will be communicating more about the logistics and most importantly about the findings and planned actions. We remain committed to attracting and retaining the most talented attorneys in the world. And we look forward to working with you as we determine how we may better accomplish our goals.

Associate Development Task Force Members:

Stephen Arcano — New York

Jess Biggio — New York

Margaret Brown — Boston

Meryl Chae — Los Angeles

Brian Duwe — Chicago

Joseph Flom — New York

Jessica Hough — Washington, D.C.

Joseph Sacca — New York

Alan Schiffman — Hong Kong

Wallace Schwartz — New York

Garrett Waltzer — Palo Alto

Clive Wells — London

Jodie Garfinkel* — Director of Professional Personnel and Attorney Development — New York

Carol Sprague* — Director of Associate /Alumni Relations and Attorney Recruiting — New York

* ex-officio

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Also, this isn’t in New York, but related to the recent defections from Alston & Bird’s Washington office to DLA Piper, we heard this bonus news:

Rumor has it that Alston’s management, to help slow the mass exodus from the DC office, has offered significant “retention bonuses” to most, if not all, partners and associates — which they must pay back if they leave before 1/2009.

Have you heard of this happening in other big group moves, or just in unique situations like this when a number of practice group heads jump ship simultaneously?

If you have more info, please email us. Thanks.
Earlier: Breaking: Sullivan & Cromwell to Pay Special Bonuses to Senior Associates!
More Details About the Sullivan & Cromwell Senior Associate Bonuses
Musical Chairs: Alston & Bird Gets Megapoached By DLA Piper

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