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

100 dollar bill Above the Law Above the Law law firm salary legal blog legal tabloid Above the Law.JPGAfter 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

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

Comments
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Posted by guest | Permalink Thursday, October 11, 2007 12:54 PM

Figgity First!
Booya

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Posted by Don't taze me bro | Permalink Thursday, October 11, 2007 1:24 PM

Siggity Second!
Booyah

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Posted by L2L | Permalink Thursday, October 11, 2007 1:25 PM

I need a job!

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Posted by NY Associate | Permalink Thursday, October 11, 2007 1:28 PM

I want to see a biglaw firm try to retain associates by forcing partners to be at least civil to associates (in addition to pay raises). I'm tired of being yelled at and generally treated like crap by partners who aren't even rainmakers.

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Posted by Saggity Second | Permalink Thursday, October 11, 2007 1:28 PM

Saggity Second!

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Posted by guest | Permalink Thursday, October 11, 2007 1:32 PM

I can confirm the rumors about A&B in DC. I was "talked to" yesterday about this point. The actual "loyalty bonus" is still TBD.

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Posted by BigLaw and loving it. | Permalink Thursday, October 11, 2007 1:38 PM

I hate associates who demand respect as if they are the goddamn queen of England. If you want civility so damn bad, get your own clients and start your own firm. In the meantime--while you are feasting on my clients--shut up and get to work. Oh, wait, you don't have clients and you don't know what you are doing. Nevermind.

When will this message sink in? Are you people that stupid?

If you think that the firm would fold without you, please leave. Associates are very, very easy to replace.

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Posted by Don't fk with me | Permalink Thursday, October 11, 2007 1:39 PM

You guys really need to get imaginative when it comes to dealing with partners. Find out what they're allergic to and figure out a fun way to make them ingest it, wear it, breathe it, whatever. Or make their personal lives hell by setting them up to make their wife think they are cheating (drop things in their pockets, like earrings, spill perfume on them, etc.). You also need to make sure they have a suspicion it's you too. You guys could really make this fun, if you wanted too. Had an annoying boss who was very allergic to poison ivy, took a vine (not the leaves) and put a few drops in his workout shirt. He knew it was me but couldn't prove it. Anyway, have fun with it.

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Posted by Agreed | Permalink Thursday, October 11, 2007 1:45 PM

You guys really need to get imaginative when it comes to dealing with partners. Find out what they're allergic to and figure out a fun way to make them ingest it, wear it, breathe it, whatever. Or make their personal lives hell by setting them up to make their wife think they are cheating (drop things in their pockets, like earrings, spill perfume on them, etc.). You also need to make sure they have a suspicion it's you too. You guys could really make this fun, if you wanted too. Had an annoying boss who was very allergic to poison ivy, took a vine (not the leaves) and put a few drops in his workout shirt. He knew it was me but couldn't prove it. Anyway, have fun with it.

Yes I agree- As an example, I filed a fake mortgage in the amount of 2 million against a partners house- wait until he goes to refinance that monstrosity (HAAAA)

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Posted by guest | Permalink Thursday, October 11, 2007 1:54 PM

I saw Ben Stein the other day in DC. Therefore, I'm awesome.

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Posted by anon | Permalink Thursday, October 11, 2007 1:56 PM

Allergic to poison ivy, eh? Boy, I never would have thought of that.

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Posted by Cumberland 2L | Permalink Thursday, October 11, 2007 1:58 PM

1:25....L2L...you and I both!

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Posted by FCKU1:38 | Permalink Thursday, October 11, 2007 2:04 PM

1:38

Yep. You're a douche. Try earning big paychecks without us easily-replaceable associates. Hmmm, looks like you need to bottom feed too, you sickfck

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Posted by Buy Me | Permalink Thursday, October 11, 2007 2:09 PM

While it is yet to be determined what the loyalty bonus as A&B will be, I think it could work if the partners really loosen the purse strings. If they make it large enough, people will stay.

Imagine you are a third year associate, you have now become valuable (finally) and you now have options to move to other shops (finally). If the firm approached you and offered a $150k bonus if you would commit to three more years, I bet most would stay if they weren't just completely miserable. It would be worth it to the firm as well. Firms are always bitching about how turnover costs them a fortune and so on.

Now if they offer $25k, then people should join the exodus because the firm is cheap and doomed.

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Posted by guest | Permalink Thursday, October 11, 2007 2:09 PM

Speaking as an associate at a firm that has had every single mangagement consultant come in and survey my ass twice a day for the last four years, let me say this will be a total waste of time and money. They'd be better off taking the money they are spending and distributing it to the seniors.

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Posted by buh? | Permalink Thursday, October 11, 2007 2:10 PM

Re: "which they must pay back if they leave before 1/2009." How is this enforced exacty if the associate's last paycheck is less than the bonus? Would a law firm really sue an associate that "forgot" to pay it back on their way out?

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Posted by guest | Permalink Thursday, October 11, 2007 2:11 PM

1:38 is hilarious. Yes, honey, I'm sure you are the LONE brilliant partner who doesn't need associates and can replace them with other quality lawyers so easily that you're not having to scramble and compete with other top firms that pay better than you and at least pretend not to hate their associates. I mean, what associate wouldn't want to work with a doll like you??

Good for you, figuring out the dynamics of the legal world better than firms raking in hundreds of millions in profits every year.

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Posted by guest | Permalink Thursday, October 11, 2007 2:14 PM

1:38

Hey, how do you think that money comes in? Sure, the partner might have brought in the work, but if the work doesn't get done correctly, on time and at the right price, it's your ass. So, feed off my labor, but realize that you actually do need me. Because if I walked out right now, I could find another job, but you'd have some serious explaining to do to your clients.

When you have delegated essentially all responsibility and are aware of only about 30% of what is going on with your clients to your associates, and one of them walks, you'll bet that you'd been a little more civil. Because the client will still hold you responsible for getting their work done, even though your firm couldn't scramble quickly enough to stop the sh!tstorm.

Of course, if most of your deals are one-off's, and associates don't have to know anything about the client, fine, be an a-hole. But the best senior associates generally find a way to avoid working with a-holes, so you're stuck training junior attorneys over and over.

But whatever, I smell a service partner.

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Posted by ANON | Permalink Thursday, October 11, 2007 2:15 PM

My firm in Atlanta just announced a retention program. They said they would let us all keep our jobs if we took a $15K pay cut and billed 250 more hours. Sweet.

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Posted by Consultin' dat ass | Permalink Thursday, October 11, 2007 2:16 PM

2:09--So what do you think of Michael Bolton? Isn't he great? Which is your favorite album (I mean, if you just had to choose, which I know is hard)?

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Posted by guest | Permalink Thursday, October 11, 2007 2:16 PM

I hate associates who demand respect as if they are the goddamn queen of England. If you want civility so damn bad, get your own clients and start your own firm.

==========================

Yeah, because (a) giving basic respect is so hard in the first place, and (b) if you "have clients" you are absolved of any responsibility to act with basic human decency.

Of course, I can just as easily disregard social norms and beat the ever loving shit out of you just before I leave the firm. You'd still have your clients. You'd just need new teeth.

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Posted by Anon | Permalink Thursday, October 11, 2007 2:17 PM

The idea that a firm -- here, A&B D.C. -- has to front pay associates with a binding term contract to keep them to stay put is both hillarious and sad. Hey A&B D.C., here's an idea -- provide your associates with interesting work, top-notch compensation now, and real opportunity for advancement and maybe they will stay put without your bribe.

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Posted by ANON | Permalink Thursday, October 11, 2007 2:20 PM

2:17 is dead-on. Retention bonus = bribe to work at a shitty firm with deep-seated problems managment refuses to address

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Posted by guest | Permalink Thursday, October 11, 2007 2:25 PM

K&S Atlanta:

First year pay as % of salary in DC, NY, west coast = 90.6%.

8th year pay as % of salary in DC, NY, west coast = 66%.

Senior associate bonuses? Oh hell no.

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Posted by BigLaw and loving it. | Permalink Thursday, October 11, 2007 2:29 PM

Does McD's need its burger-flippers? Yes. Does it cut them in on the profits? No.

P.S. Your rage makes me happy. NOW GET BACK TO FLIPPING MY BURGERS!

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Posted by Anonymous | Permalink Thursday, October 11, 2007 2:31 PM

2:25:

But isn't K&S Atlanta's bonus program really, really generous?

I mean, they don't fire you if you come in over 2200, right?

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Posted by Anon | Permalink Thursday, October 11, 2007 2:33 PM

Has K&S announced its new salary structure in Atlanta yet? Is it as lame as the structure that A&B announced -- which did not even give senior associates as much of a raise as 1st year associates.

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Posted by ANON | Permalink Thursday, October 11, 2007 2:40 PM

No announcement.

They will inevitably do what A&B did and they will look stupid for taking 5 months to say "us too".

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Posted by A&B stole my bread | Permalink Thursday, October 11, 2007 2:43 PM

We'll see. Sutherland did not simply follow A&B, so not entirely clear that is what K&S will do.

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Posted by I prefer syrup | Permalink Thursday, October 11, 2007 2:59 PM

Hey 2:29, get back to tossing my salad.

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Posted by guest | Permalink Thursday, October 11, 2007 2:59 PM

I'll say it again, just for redundancy...A&B mid/senior associates in Atlanta are still fuming mad over the "revised" compensation scale. Ite raises were seen at complete SH*T.

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Posted by guest | Permalink Thursday, October 11, 2007 3:04 PM

lol@2:59

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Posted by you could be a waitress | Permalink Thursday, October 11, 2007 3:25 PM

sutherland has the "best" plan in atlanta assuming dicking around on law blogs counts towards nonbillables...

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Posted by A&B stole my bread | Permalink Thursday, October 11, 2007 3:34 PM

3:25 -- is that 2400 nonbillable requirement really enforced?

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Posted by you could be a waitress | Permalink Thursday, October 11, 2007 3:39 PM

i don't think anybody knew about although apparently it's always been there. we'll see how "real" it is come next year. would 2300 get you most of the deferred?

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Posted by guest | Permalink Thursday, October 11, 2007 3:39 PM

Has K&S announced its new salary structure in Atlanta yet?

=======================

Nope. The DC and Houston raises were a priority. Atlanta is more like a "we'll get to this eventually" sort of thing.

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Posted by guest | Permalink Thursday, October 11, 2007 3:42 PM

A&B's raises were seen as complete shit because they are complete shit. An insult to every senior associate they have, and a knife in the back to every Atlanta associate. I hope their fucking building collapses, and only the associates escape alive.

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Posted by Anon | Permalink Thursday, October 11, 2007 3:46 PM

Wow, 3:42, tell us what you really think.

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Posted by guest | Permalink Thursday, October 11, 2007 3:57 PM

Amen 3:42.

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Posted by masochistic associate | Permalink Thursday, October 11, 2007 4:05 PM

Biglaw and loving it: I love it when you talk dirty to me baby. I can has documents to review for you?

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Posted by BigLaw and loving it. | Permalink Thursday, October 11, 2007 4:23 PM

I would think A&B associates would be happy to have jobs. There really are not 't many better firms in the ATL. Where would they go, Powell Goldstein?

Let me repeat for those of you too slow to get it----you are "the help." You will get paid only the bare minimum. If you don't like it, leave. Acting up like a 3 year old doesn't make the situation any better.

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Posted by anon | Permalink Thursday, October 11, 2007 4:32 PM

Yeah, Atlanta sucks. Oh wait, but the weather is still warm and sunny there. And everyone can buy big houses. And nice cars. Why exactly am I not working there?

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Posted by Hit me baby one more time | Permalink Thursday, October 11, 2007 4:38 PM

4:23

Keep it coming, you big mean guy you!

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Posted by 4:32 | Permalink Thursday, October 11, 2007 4:42 PM

You are not working in Atlanta because you'd make over $500K less than someone in, oh,,,, say Houston, Texas over a 7-year stint; the only "big house" you could afford would be in the suburbs which, with traffic, is about an hour away from your office (although that gives you more ample opportunity to enjoy your "nice car" as you sit in traffic each day); you'd bill more hours than your Texas comrades and as a 5th-year associate in Atlanta you weould get paid less than a Houston 1st-year for doing so.

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Posted by guest | Permalink Thursday, October 11, 2007 10:58 PM

A+B loyalty bonuses are a further sign that A+B cares more about its field offices than the mothership. They are paid less than Charlotte associates, have to put up with more admin responsibilities/committees and political crapola, and shouldn't expect "loyalty" bonuses if a practice group moves to another firm. This old firm ain't what it used to be...

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Posted by no love for A&B DC | Permalink Friday, October 12, 2007 1:13 AM

10:58, I worked in A&B's DC office and if the firm cares more about its satellite offices than the mothership, it must be truly miserable where you are! I can't speak for the other offices, but the DC office had plenty of "political crapola" (for example, the type of prima donna as its managing partner who storms off to another firm in a huff when he doesn't get his way) and was not a fun place to work for many associates. Although, I certainly don't dispute your claims that the firm sucks or that it's not fun to work at A&B Atlanta.

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Posted by Anonymous | Permalink Friday, October 12, 2007 10:13 AM

Having worked in A&B's highly disfunctional NY office, and witnessed the steady stream of departures, voluntary and otherwise, I find the assertion laughable that A&B favors its satellite offices. Raleigh is a shell of its former self, NY is a recruiter's cash cow (constantly churning with laterals to replace the fleeing associates who realize they have no future there), Washington's big wigs are deserting . . . Maybe A&B can pin its hopes on its new Dallas office acquisition. But if it botches that acquisition as badly as it did NY, perhaps it should just resign itself to remaining the undistinguished, regional firm that it really is.

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Posted by guest | Permalink Friday, October 12, 2007 11:32 AM

A+B's Charlotte's problem is that the partner's only talk a good game. I found very little support for associates who do good work and who clients like, but aren't the partners' "pets".

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Posted by dallas prospects | Permalink Friday, October 12, 2007 2:25 PM

10:13 is right -- A&B will only succeed in breaking into the Dallas market if it throws its old tactics out the window. It will be just as hard to try to compete with firms like V&E and Baker Botts in the "Texas network" as it was to to turn Walter Conston into a competitor with big NY firms. There are lots of other "carpetbagger" firms in Dallas that have a more established national presence. Plus, A&B doesn't seem to understand that it can't acquire an existing practice and shove its firm culture (lovely as it is) and its "this is the way we've always done it" attitude down everyone's throat. The firm needs to learn to adjust to individual markets, rather than being so hung up on its status as an Atlanta superpower. The average non-Atlantan doesn't know or care about A&B (no offense A&B'ers), yet that seems to be a major news flash to the power players in Atlanta.

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Posted by guest | Permalink Friday, October 12, 2007 4:38 PM

Is it me, or does 1:38 sound like the kind of partner whose parents were "the help" and hence the big chip on her shoulder? In my experience, these types of partners are also treated like "the help" by other partners...

Too bad, I she can enjoy her success despite the lack of breeding...

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Posted by guest | Permalink Friday, October 12, 2007 4:39 PM

Is it me, or does 1:38 sound like the kind of partner whose parents were "the help" and hence the big chip on her shoulder? In my experience, these types of partners are also treated like "the help" by other partners...

Too bad, I hope she can enjoy her success despite the lack of breeding...

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Posted by Anon | Permalink Friday, October 12, 2007 4:59 PM

It's you

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