Associate Bonus Watch: Sullivan & Cromwell Matches (and More)
Apologies for the delay. The bonus announcement of Sullivan & Cromwell was made by firm chairman H. Rodgin Cohen at 5:10 p.m. today, but it took us a few hours to get our hands on the memo.
For associates in the class of 2007 through the class of 2004, S&C is paying the standard year-end and special bonuses. But for more senior associates, it’s paying lump-sum bonuses — none of this “special” business — of $80,000 (2003), $95,000 (2002), and $110,000 (2001 and above).
These amounts reflect the new S&C senior associate bonuses — in part. More cash will be forthcoming in 2008. From Rodge Cohen’s memo:
As announced earlier this year, the Firm will pay senior associates compensation in addition to salary and bonus through our new Senior Associate Supplemental Bonus Plan (“the Plan”). We have decided to accelerate payments under this new Plan to result in the following amounts being paid on December 14 to our senior associates, with final supplemental payments to be made in the Spring of ‘08.
Read the rest, after the jump.
SULLIVAN & CROMWELL LLP — 2007 ASSOCIATE BONUS MEMO
Sullivan & Cromwell is pleased to announce the following bonuses for associates in the classes of 2004 through 2007. The Firm will pay bonuses on December 14th pro-rated for those who joined the Firm after January 1, 2007.
Class of 2007: year-end bonus of $35,000 (pro-rated)
Class of 2006: year-end bonus of $35,000; special bonus of $10,000
Class of 2005: year-end bonus of $40,000; special bonus of $15,000
Class of 2004: year-end bonus of $45,000; special bonus of $20,000
As announced earlier this year, the Firm will pay senior associates compensation in addition to salary and bonus through our new Senior Associate Supplemental Bonus Plan (“the Plan”). We have decided to accelerate payments under this new Plan to result in the following amounts being paid on December 14 to our senior associates, with final supplemental payments to be made in the Spring of ‘08.
Class of 2003: $80,000
Class of 2002: $95,000
Class of 2001 and above: $110,000
Special, European and other counsel also participate in the Plan, and their compensation will continue to be determined separately on an individual basis.
We believe S&C associates are the best in our profession. This year our associates’ efforts were exceptional. The Firm is committed to maintaining its position as a compensation leader.
With appreciation and thanks,
Rodge
[Firm chairman H. Rodgin Cohen]
(120) Comments
Comments
First
When is Part B of "the Plan" initiated? i.e. When do I get my raise to 190?
NY to nothing. I guess it makes sense as the senior associates are the ones it's hardest and most important to keep. Still, disappointing for the rest of us.
NYC Bonus List of Shame
2008 Vault Rank / Firm / 2005 RPL (if known)
1
2
3
4 Skadden, Arps, Slate, Meagher & Flom / $997,000
5
6
7
8 Latham & Watkins LLP / $875,000
9 Weil, Gotshal & Manges LLP / $954,000
10 Covington & Burling LLP / $774,000
* 11 Kirkland & Ellis LLP / $987,000 (Punted)
12
13
14
15 Wilmer Cutler / 846,000
16 Williams & Connolly LLP /
17 Sidley Austin LLP / $774,000
18 Gibson, Dunn & Crutcher LLP / $1,011,000
19 O'Melveny & Myers LLP / $828,000
20 White & Case LLP / $600,000
21 Arnold & Porter LLP / $816,000
22 Jones Day / 602,000
23 Morrison & Foerster LLP / $735,000
24
25 Clifford Chance LLP /
26 Cadwalader, Wickersham & Taft / $940,000
27 Hogan & Hartson LLP / $735,000
28 Mayer, Brown, Rowe & Maw LLP / $750,000
29 Fried, Frank, / $891,000
30 Ropes & Gray LLP / 841,000
31 Paul, Hastings, Janofsky & Walker / $766,000
32
33 Akin Gump Strauss Hauer & Feld LLP / $779,000
34 Winston & Strawn LLP / $718,000
35
36 Wilson Sonsini Goodrich & Rosati / $752,000
37 Linklaters /
38 Orrick, Herrington & Sutcliffe / 767,000
39 Freshfields Bruckhaus Deringer LLP /
40 Proskauer Rose LLP / $745,000
...
...
43. (Quinn Matched)
55. (Cahill Matched)
NR. McKee Nelson (Failed to Match)
Rank 2006 in revenue
by revenue Revenue per lawyer
per lawyer Firm Per Lawyer from 2005
-------------------------------------------------------------------------------
1 Wachtell ABOVE MARKET $2,455,000 2.5%
-------------------------------------------------------------------------------
2 Sullivan & Cromwell MARKET & ABOVE MARKET FOR SENIOR ASSOC. $1,565,000 1.3%
-------------------------------------------------------------------------------
3 Wiley Rein $1,520,000 162.1%
-------------------------------------------------------------------------------
4 Cravath MARKET $1,355,000 5.9%
-------------------------------------------------------------------------------
5 Davis Polk MARKET $1,200,000 4.8%
-------------------------------------------------------------------------------
5 Simpson Thacher-MARKET $1,200,000 6.7%
-------------------------------------------------------------------------------
7 McKee Nelson $1,190,000 1.7% BELOW MARKET
-------------------------------------------------------------------------------
8 Milbank, Tweed MARKET $1,110,000 10.4%
-------------------------------------------------------------------------------
9 Skadden $1,095,000 10.1%
-------------------------------------------------------------------------------
10 Cahill Gordon MARKET $1,075,000 8.6%
-------------------------------------------------------------------------------
11 Fragomen, Del Rey $1,070,000 26.6%
-------------------------------------------------------------------------------
12 Gibson, Dunn $1,050,000 4.0%
-------------------------------------------------------------------------------
12 Irell & Manella $1,050,000 9.9%
-------------------------------------------------------------------------------
14 Kirkland & Ellis PUNTED $1,035,000 5.1%
-------------------------------------------------------------------------------
14 Paul, Weiss MARKET $1,035,000 0.5%
-------------------------------------------------------------------------------
16 Munger, Tolles $1,025,000 18.5%
-------------------------------------------------------------------------------
17 Quinn Emanuel $1,020,000 28.3% SLIGHTLY ABOVE MARKET BUT PARTIALLY DEFERRED
-------------------------------------------------------------------------------
18 Shearman & Sterling MARKET $1,010,000 2.0%
-------------------------------------------------------------------------------
19 Debevoise & Plimpton MARKET $1,005,000 8.6%
-------------------------------------------------------------------------------
20 Cadwalader $1,000,000 6.4%
-------------------------------------------------------------------------------
21 Boies, Schiller $980,000 3.2%
-------------------------------------------------------------------------------
21 Weil, Gotshal $980,000 2.6%
-------------------------------------------------------------------------------
23 Cleary Gottlieb MARKET $975,000 7.1%
-------------------------------------------------------------------------------
24 Willkie Farr MARKET $970,000 12.8%
-------------------------------------------------------------------------------
25 Williams & Connolly $955,000 2.7%
-------------------------------------------------------------------------------
26 Finnegan, Henderson $945,000 11.2%
-------------------------------------------------------------------------------
27 Townsend and Townsend $940,000 6.2%
-------------------------------------------------------------------------------
28 Fried, Frank $930,000 4.5%
-------------------------------------------------------------------------------
29 Schulte Roth $925,000 6.9%
-------------------------------------------------------------------------------
30 Latham & Watkins $920,000 5.1%
-------------------------------------------------------------------------------
31 Wilmer Cutler $890,000 5.3%
-------------------------------------------------------------------------------
32 McDermott Will $875,000 12.9%
-------------------------------------------------------------------------------
33 Kaye Scholer $865,000 7.5%
-------------------------------------------------------------------------------
34 Arnold & Porter $855,000 4.9%
-------------------------------------------------------------------------------
34 Ropes & Gray $855,000 1.8%
-------------------------------------------------------------------------------
36 Choate, Hall $850,000 10.4%
-------------------------------------------------------------------------------
36 Kramer Levin $850,000 6.3%
-------------------------------------------------------------------------------
38 Heller Ehrman $845,000 5.0%
-------------------------------------------------------------------------------
39 Akin Gump $840,000 7.7%
-------------------------------------------------------------------------------
40 Hughes Hubbard $835,000 12.1%
Not listed: Dewey (Market with hours requirement)
"We believe S&C associates are the best in our profession."
Except for the ones that sue us...
Is Skadden even relevant anymore?
"Is Skadden even relevant?"
Bitch, please. They'll announce later this week and out do everyone else by $5K - $10k per class. SASM&F will be the darling of the bonus game for the rest of November, then Kirkland will announce in December like it said it would all along and simply mop the floor with the rest of these "compensation leader" firms.
Then everyone will lament the fact that Chi associates are getting paid better than NY, and the call to $190 will be that much stronger.
Mark it down, baby, mark it down.
Why are the 2005 RPL numbers in the two posts different for the same firms?
I think the 2nd list is really 2006 RPLs. Either way it doesn't matter. Accuracy doesn't matter in law. Embarassing law firms that don't match market bonuses is what matters.
Interesting that the shops big in structured finance have been completely silent (except McKee). Is this the year that the 1st tier finally break away from these second rate shops? Orrick, Sidley, Thacher, CWT - c'mon boys - what happened to all those big bucks you were making? Can't handle the competition?? Haaaaaaaaaaaa!!!!
batteraziz!
Skadden is so 1987.
No bonus for you!
stagnant ppp means sweatshop cannot pay
riddle me this...
stagnant PPP!
when is clifford going to match... and why does no one report RPL figures for them??
Where is Weil's announcement?
Will we see any firms this year that fess up to dropping RPLs or will they hide the truth?
is schulte gonna match?
So what is total compensation each year?
So what is total compensation each year?
Since these are bonuses they dont raise the rates that Law firms bill out associates( assuming law firms bill you out at three times your hourly wage.. not sure if that is true). So why is Walmart complaining?
Since these are bonuses they dont raise the rates that Law firms bill out associates( assuming law firms bill you out at three times your hourly wage.. not sure if that is true). So why is Walmart complaining?
Are Fried Frank, Schulte, Kramer Levin, and Kaye Scholer going to match?
where is paul hastings announcement?
11:06, clifford does not matter
no hope for a raise with cheapos like STB and Davis.
S&C, for all its faults, is generous.
i hear you red dog.. just thought they would be trying to live down the memo with as many good things as they could muster
Sounds to me like S&C is taking some of the special bonus out of the profit sharing pool. Yes, there might be a little left over to be paid in Spring, but it's not going to be quite the boondoggle as one might think.
Mark your calendars - January 13, 2008.
lat, can we get a post on which law firms have the dumbest names? maybe a poll? i hate allen & ovary, it creeps me out. leboeuf was stupid as hell before, but now it's kinda cool cause it comes after dewey and so you can call them dewey and the beef. oh that reminds me of fried frank, i always get hungry when their name pops up. debevoise & plimpton might be the most pretentious name of all time. kirkland sucks but that has nothing to do with their name.
i picked Latham over DPW and now i'm wondering if I F'd that up? Latham's by the hour whereas DPW is flat like the rest of the NYC firms. I was hoping though if I got stuck working as much as I expect to be working (read: 2300-2400) that I'd end up making more at Latham. Whoops?
Always thought Stroock & Stoock & Lavan was a weird name and also grammatically incorrect.
you made a massive mistake if you chose latham over dpw. try to renege.
i'm so glad i picked s&c. nothing worse than being miserable and getting paid less than other people who are similarly miserable, right?
i'm a little disappointed with the announcement. i was expecting a raise.
11:59, accord. DPW is considerably superior.
you should be happy. s&c is a great place despite what you may hear. but we won't see this money for a long time. a raise would have been much sweeter.
I'd much rather work at Latham than DPW. You'll make just as much (despite the fact that everyone on here thinks that firms that don't announce w/in a week won't pay as well), but you'll enjoy your life a heck of a lot more. Similar hours, but *much* more enjoyable people.
whats up with white and case?
REVISED NYC Bonus List of Shame (1-60)
2008 Vault Rank / Firm / 2005 RPL (if known)
1
2
3
4 Skadden, Arps, Slate, Meagher & Flom / $997,000
5
6
7
8 Latham & Watkins LLP / $875,000
9 Weil, Gotshal & Manges LLP / $954,000
10 Covington & Burling LLP / $774,000
* 11 Kirkland & Ellis LLP / $987,000 (Punted)
12
13
14
15 Wilmer Cutler / 846,000
16 Williams & Connolly LLP /
17 Sidley Austin LLP / $774,000
18 Gibson, Dunn & Crutcher LLP / $1,011,000
19 O'Melveny & Myers LLP / $828,000
20 White & Case LLP / $600,000
21 Arnold & Porter LLP / $816,000
22 Jones Day / 602,000
23 Morrison & Foerster LLP / $735,000
24
25 Clifford Chance LLP /
26 Cadwalader, Wickersham & Taft / $940,000
27 Hogan & Hartson LLP / $735,000
28 Mayer, Brown, Rowe & Maw LLP / $750,000
29 Fried, Frank, / $891,000
30 Ropes & Gray LLP / 841,000
31 Paul, Hastings, Janofsky & Walker / $766,000
32
33 Akin Gump Strauss Hauer & Feld LLP / $779,000
34 Winston & Strawn LLP / $718,000
35
36 Wilson Sonsini Goodrich & Rosati / $752,000
37 Linklaters /
38 Orrick, Herrington & Sutcliffe / 767,000
39 Freshfields Bruckhaus Deringer LLP /
40 Proskauer Rose LLP / $745,000
41. King and Spalding
42. Morgan, Lewis & Bockius
43. (Quinn Matched)
44. Baker & McKenzie
45. Baker Botts LLP
46. Boies, Schiller & Flexner LLP
47. Munger, Tolles & Olson LLP
48. Dechert LLP
49. Irell & Manella LLP
50. McDermott, Will & Emery
51. Jenner & Block LLP
52. LeBoeuf, Lamb, Greene & MacRae LLP
53. Allen & Overy LLP
54. DLA Piper
55. (Cahill Matched)
56. Fish & Richardson P.C.
57. Fulbright & Jaworski LLP
58. Pillsbury Winthrop Shaw Pittman LLP
59. Goodwin Procter LLP
60. Cooley Godward LLP
NR. McKee Nelson (Failed to Match)
As far as the name game goes, Sidley Austin sounds like a pornstar name to me. Thoughts?
what's RPL?
Wal-Mart GC to 125!
How about: Well, Gosh, Mangie ...
12:19: Dude, you can take the hours-based firms off your list of shame. Those associates know what they're getting from the beginning of the year. The good ones get PA$D and the non-billers get stuck.
11:59 and 12:03
Agreed. DPW is superior to Latham in almost all respects. As to Latham's people being "much more enjoyable", I highly doubt that - DPW is widely known as having the most polite and pleasant people.
winston & strawn sounds more like a cigarette manufacturer than a law firm
12:30: RPL = Revenue Per Lawyer. Best measure of what a firm will have at the end of the day to pay out to associates.
12:34: What hours based firms are on the list that have announced a bonus? I didn't post the list, but it looks okay to me.
12:38: right on.
12:14: well, you're not right on.
12:38 - no, actually DPW is known as having the most passive aggressive people. The fact that they only talk shit about you behind your back doesn't actually make them polite - it just makes them WASPs. And look at the miserable associate morale and brutal hours in the most recent midlevel survey - lowering morale + stagnant PPP = rancid TTT in decline
Weil = While we gotcha, we mangle ya'
Debevoise & Plimpton = Da boyz be pimpin'
make a difference if the office is in CA rather than NYC? DPW is good out here, but Latham's bigger / broader, and who wants to be in a satellite office?
12:49, you sound like the idiot who criticizes LEWW week after week. DPW is several orders of magnitude above Latham because it recruits far, far better people. HYP undergrads at YLS or on Law Review at HLS or Columbia regularly go to Davis and would not even consider Latham for a call back.
12:49 - you can say DPW people are passive aggressive, but if you call DPW a "rancid TTT in decline", nobody will take you seriously. It is clearly and widely regarded as one of the most prestigious, respected, selective and profitable law firms in the country.
And no, I do not work there - I work at a close competitor / peer firm. Indeed, I have been on the opposite side to DPW many times, and I have always found their partners and associates to be extremely intelligent, diligent, pleasant, polite and great to work with. I cannot overstate the joy of having a really competent and reasonable opposing counsel in a corporate transaction.
TRUE LIES quotes! yeah!
1:02, why do you even waste time making this comment. Haven't you been around here long enough to know that if a firm consistently attracts successful, talented and overall interesting people, those who don't have the credentials to work there will make comments about "rancid TTT in decline", etc. There are commenters here who don't even respect Wachtell, Supreme Court clerks, or anyone else who stands for success.
titcr
1:14 is too dumb to live.
Rather than RPL, a much better measure of a firm's ability to pay the market bonus is its PPP.
Firm - PPP 2006 (updated June 2007)
1. Wachtell - $3.975m
2. Cravath - $3.015m
3. Cadwalader - $2.9m
4. Sullivan - $2.8m
5. Kirkland - $2.6m
6. Cahill - $2.57m
7. Simpson - $2.5m
8. Paul Weiss - $2.5m
9. Quinn - $2.43m
10. Davis - $2.43m
11. Milbank - $2.17m
12. Skadden - $2.15m
13. Cleary - $2.1m
14. Wilkie - $2.03m
15. Dechert - $1.985m
16. Weil - $1.95m
17. Latham - $1.855m
18. Debevoise - $1.806m
19. Gibson - $1.75m
20. Irell - $1.675m
21. O'Melveny - $1.625m
22. Paul Hastings - $1.605m
23. Fried Frank - $1.53m
24. White & Case - $1.5m
25. Shearman - $1.48m
26. Townsend - $1.44m
27. Dewey - $1.44m
28. Orrick - $1.43m
29. LeBoeuf - $1.43m
30. Kaye Scholer - $1.41m
31. McDermott - $1.4m
32. King & Spaudling - $1.312m
33. Wilson Sonsini - $1.3m
34. Sidley - $1.3m
35. Jeffer Mangels - $1.25m
36. Morgan Lewis - $1.24m
37. Munger - $1.22m
38. Bingham - $1.22m
39. Howrey - $1.2m
40. Greenberg Traurig - ~$1.2m
41. MoFo - $1.13m
42. DLA (US only) - $1.12m
43. Loeb - $1.175m
44. Akin Gump - ~$1.1m
45. Manatt - $1.1m
46. Sheppard Mullin - $1.025m
47. Heller Ehrman - $1.035m
48. Finnegan - ~$1m
49. Cooley Godward - ~$1.0m
50. Reed Smith - $940k
51. Jones Day - ~$900k
52. Pillsbury - $875k
53. Allen Matkins - $740k
54. Duane Morris - $728k
55. Sedgwick - $705k
56. Pepper Hamilton - $647k
57. Luce Forward - $565k
58. Buchanan Ingersoll - $522k
59. Knobbe - $515k
60. Littler Mendelson - ~$463k
[sarcastic clapping for 12:58]
Bonus or not, I'm sold on Latham. In the "Buzz" section of the 2007 Vault 100, Latham was described as "a bit like Degrassi." 'Nuff said.
SULLIVAN HAS MORE THAN JUST MATCHED - IT HAS CEMENTED ITS POSITION AS THE MARKET LEADER FOR SENIOR ASSOCIATE COMP. (EXCLUDING WLRK).
AS SOME OF YOU MAY KNOW, SULLIVAN'S BASE SALARIES FOR SENIOR ASSOCIATES ARE ALREADY CONSIDERABLY HIGHER THAN PEER FIRMS. SULLIVAN'S SALARY SCALE MAXES OUT AT $310K, WHILE MOST OTHERS MAX OUT AT $280K. THUS, BY PAYING THE SAME BONUS AMOUNT IN DECEMBER AS THESE OTHER FIRMS, SULLIVAN SENIORS STAND TO MAKE $30K MORE IN TOTAL COMP. THAN SENIORS AT CRAVATH, SKADDEN, DPW, ETC. (OR $25K MORE THAN THOSE FIRMS THAT UPPED CRAVATH BY $5K BY PAYING $115K TO 2001's)
THROW IN THE SUPPLEMENTAL BONUS THAT WILL BE PAID THIS SPRING, AND CRAVATH, SKADDEN, DPW ETC., ARE REALLY LOOKING SECOND TIER. TAKING THIS BONUS INTO CONSIDERATION, IT IS LIKELY THAT SENIORS AT SULLIVAN WILL RECEIVE TOTAL COMP. AS MUCH AS $40-50K GRETAER THAN THOSE SUCKERS WORKING JUST AS HARD AT CRAVATH AND SKADDEN.
MEMO TO THE EXECUTIVE COMM. AT CRAVATH, SKADDEN, ET AL.: DO YOU KNOW HOW DEMORALIZING IT IS TO BE IN THE OFFICE AT MIDNIGHT KNOWING THAT YOU WOULD BE MAKING $40-50K MORE IF YOU HAD ACCEPTED THAT OFFER YOU GOT 7 YEARS AGO FROM SULLIVAN?
MEMO TO THOSE WITH OUTSTANDING OFFERS FROM SULLIVAN AND EITHER CRAVATH, SKADDEN OR DPW: THE QUALITY OF THE WORK, AND THE HOURS YOU WILL WORK, AT THESE FIRMS DO NOT DIFFER. THUS, WHY NOT GO WITH THE FIRM THAT PAYS THE MOST MONEY? YOU WILL BE GLAD YOU DID 7 YERAS FROM NOW.
Is it just me or is that profits per partner list at 1:26 very incomplete? The ranking of numbers makes it seem like it's supposed to be a complete list (although mangling King and Spalding's name gives away that it might not exactly be definitive). Pretty sure Mayer, Hogan, and Winston are all over a million to name a few.
1:26,
PPP only considers equity partners, so certain firms with a relatively small number of equity to non-equity partners will appear to have grossly high PPPs. Along these lines, a firm can have a crappy fiscal year but simply respond by de-equitizing a number of equity partners to such an extent that it appears that its PPP actually rose.
RPL paints a better picture of a firm's health b/c gross revenues and total lawyers are figures that don't depend on the internal structure of a particular firm.
either way why dont the magic circle firms numbers show up on either list?
I agree with 11:08..where the hell is Weil?
The 2:06 list doesn't seem to include the Magic Circle firms, most of whom I believe would be in the top 10 - I think that Clifford Chance and Linklaters would be 1 and 2, actually.
B2L,
If you're a hard worker, it is better to go to Latham than DPW. DPW's bonus is not only lock-step but it's locked-in. Latham's bonuses are merit-based, and if you bill enough hours and get good reviews, you can certainly make more than DPW's "market" bonus.
While the "minimum" bonus (given to the underachivers who barely make 1900 hrs) might be lower than NY market, a few superstar first-years at Latham got a $60K bonus last year. You won't find that kind of total comp for a first-year anywhere outside of WLRK, K&E, and Susman Godfrey.
These bonuses are the same as the Cravath standard. I.e. 80k for 2003, 95k for 2002, 110k for 2001.
Making it one lump-sum might be grand, but under the bifucated system you get the money faster.....
Wal-Mart GC to serfdom!
Lat,
Please do a post about how New Jersey "big" firms pay disgustingly low salaries and effectively no bonuses (i.e. for 2200 hours you get like 5k) and how no one with the ability to work in NY would work in NJ for what is really now about 1/2 pay. NJ firms need to increase pay and bonuses by tens of thousands of dollars and lower the hours minimum or face an exodus in light of the NY salary increases.
Wait. . . after reading this, it sounds to me that S&C is folding their previously announced senior associate incentives into the year-end bonuses. As in, the senior associate supplemental bonus plan is displacing the "special" bonus, not adding to it.
I'm surprised no one here other than 5:45 has pointed this out, but then again there's a reason no one here is a banker (and it's certainly not for lack of greed): the "special bonus," bifurcated system is worth more to an associate because of the time value of money.
The present value of the special bonus is close to 100%, while the December bonus has to be discounted, if only by a little. So a firm that pays one lump sum in December is not to be commended when its peers are paying out bonuses that cost more to the Firm (because the funds aren't earning the Firm interest for that month) and mean more to associates (because the funds can earn interest for the associate for that month).
The only notable feature of the S&C plan is the senior bonuses to be paid out next year, but then again, they have to be discounted even more.
S&C is the best overall firm in the country.
7:57: It's both. They are paying part of their bonuses under the Senior Associate Compensation Plan to be the equivalent of senior bonuses at other firms, and another part will be paid later in 2008. We don't know from what they disclose how much will be paid later in 2008. This is a good strategy on their part, since Cravath, STB and DPW are far less likely to attempt to match S&C additional bonus if they don't know how much they would need to pay to match. We will see in 2008 if any firm will try to match S&C additional bonus.
umm when those senior associates at S&C are maxing out at 310K their classmates at cravath are already partner... and im gonna go out on a limb here and say their total compensation might be a wee bit higher
http://www.law.com/jsp/article.jsp?id=1194257039275
It seems to me as though seniors at S&C are now pretty much guaranteed significantly higher bonuses than at peer firms. The year end numbers match market but avoid the BS language about "special" and are treated simply as bonus + part of the supplemental comp -- this implies the number will stay close to this high in future years. On top of that, there is another pay out in April, and base salary for the most senior people is already $20K above market. Looks like this year seniors at S&C may make 30K or maybe even more than those at other firms -- next year, if the "special bonus" vanishes the gap could be even bigger. Woulda been nice to get a bit of the dough now I imagine, but this way it looks a lot more like it won't vanish as soon as the market hiccups. Nice to see at least ONE firm stepping up and recognizing who is providing the value and earning the revenue! Pretty clear who the NYC compensation leader (beyond Wachtell) is now. Wish my firm would do the same... but they won't.
Time value of $ over a month. Yup - can't believe no one made that distinction. By that logic, we should be looking at the exact date in November that things are getting paid. YOU'RE PAYING ON NOVEMBER 25TH!!! THAT'S NOT A MATCH.
Settle down
I find 10:06's comment from last night amusing/disappointing. "NY to nothing.... Still, disappointing for the rest of us."
Last time I checked there wasn't anything too disappointing about a new attorney banking over $200,000 straight out of law school. What world are you living in that that's a disappointment? Shit.
Does anyone know if ppl who are clerking get some (or all) of this bonus?
DPW does not have nice people. That is such a lie. Lots of screamers.
Looks like we'll have to wait until Jan. for $190k.
Does anybody know what S&C's litigation dept is like in terms of hours and lifestyle in comparison to other top 20 NYC firms?
8:38: I agree that it's not a big deal. My only point is that, between a firm paying 10k today/90k a month from now versus a firm paying 100k a month from now, the bifurcated plan is worth slightly more to associates. At the very least, it's premature to call S&C a market leader simply because it lumps together its bonuses for senior associates.
If anything, S&C should be looked down upon for using this round of bonus raises to get out of having to pay part of its Senior Associate Supplemental Bonus Plan. When the firm announced "the Plan," it was viewed as promising seniors a premium over prevailing market rates. Now, part of that premium was just swallowed up under the guide of "accelerate[d] payments." Oh well.
"If anything, S&C should be looked down upon . . . ."
We all like more money, 9:16, but your greed appears to have made you insane.
Where's Gibson? Aren't they the most profitable out-of-town firm in NY?
Gibson always waits until after the market has settled to announce. It may be the most profitable out-of-town firm, but it has no aspiration of being a market leader.
Now that all the cards are out, Baker & MacKenzie will step up and raise the competition!!!
Drop a hot dog in a vat of bubbling oil and you get a Fried Frank.
9:37 - Nothing funnier than the idea of Baker & MacKenzie raising. If they could even come near paying market it would be a miracle.
1:26 AM --
According to WSJ, Schulte PPP were $2.16 mil in 2006 (putting them between Milbank and Skadden).
http://blogs.wsj.com/law/2007/05/14/cerberus-schulte-roths-beast-of-a-client/
uh, by the way... where is Schulte in the ppp list. They had PPP $2.17M if I remember correctly...
I have no doubt that Baker & McKenzie will pay its NY associates the market bonus (market being defined as the average bonus earned in Tulsa, OK and Lincoln, NE)
Gibson is as Latham does.
How is this "and more," given that the senior bonuses are the same amount as the base + special bonuses that every other firm is paying?
Is it a coincidence that Latham, WGM and Skadden are the only two V10 not to announce yet? Too big? Not gonna do it outside NY? What's the deal?
I hear Skadden is folding -- the raises and bonuses on an annual basis are too stressful. Oh well, good while it lasted.
I wish people on this board would stop talking about the time value of money when the time horizon is about 3 months. What are you investing in that really makes this 3 month difference is timing such a big f'ing deal? Regardless, if you are an associate a firm that pays the special bonus in January, just get a credit card with a 0% introductory APR, spend your bonus now and pay it off in January. BAM! Instant time value of money arbitrage.
10:03,
Not always-- Gibson still hasn't raised its clerkship bonuses (unless I missed the news), while Latham did so months ago.
Time value of money is very relevant for people with $60k+ in debt at 8%-9%. If you pay that off, that can be around $450 that you save. Not a ton of money, but not something you would tip a stripper either.
10:53 - speak for yourself, I give my strippers special bonuses
Seriously, why are the Bigs slow to match this time around? White & Case? Skadden? Weil? Cadwalader? Anyone out there?
Ok, serious question for all of the gurus on this board. Do you think the second tier firms (Fried Frank, Stroock & Stroock & Lavan, OMM, Proskauer)
Time for DLA to match.
there's no way CWT matches - they're PPP surge was entirely due to the (formerly) booming CMBS market
Ok, serious question for all of the gurus on this board. Do you think the second tier firms (Fried Frank, Stroock & Stroock & Lavan, OMM, Proskauer)
Gibson is not the most profitable out of town firm in NY - K&E's PPP is nearly a million more than Gibson's.
10:08,
Latham announces its bonuses in February.
11:58 - First of all it is "their" PPP, second, CWT had an insane first half of the year and are still doing very large CMBS deals, just fewer small ones. CWT will match because they know that if they don't they will never be able to recruit or retain anyone. Their reputation is bad enough without not matching bonuses.
11:00 - you mean special boni?
10:31, Skadden will match the market leader as they have always done.
Wachtell just made more corporate partners in New York than S&C. S&C needs to pay its senior associate more to compensate for no partnershnip chanses.
Skadden just matched.
206, did skadden match in all offices?
Lat: You need to call Skadden and find out what's going on. They matched but said it's only for associates who were "reasonably busy" in 2007. wtf does reasonably busy mean? Does that just mean that they hit the 1800 hour minimum? Can you call and find out, Lat?
Skadden matched in ALL offices. Enjoy Houston and Wilmington! The reasonably busy language is the same language Skadden has always used. Nothing new.
2:15: What does "reasonably busy" mean? Does that mean you have to be at the 1800 minimum or what does it mean? I'm a first year at Skadden who is already past the 1800 minimum; do I have anything to worry about?
2:18: I'm a Skadden 4th year; you don't need to worry.
Does anyone have any info about S&C London? I hear it is a complete slave ship (worse than NY), with associates regularly putting in 300+ hour months.
Are associates there paid the same base and bonus as in NY? Do they also get a COL allowance? Is it enough to cover the costs of London? Also, are the Americans working there paid in pounds or dollars?