Associate Bonus Watch: Arnold & Porter (New York)
Just in time for its holiday party, which is taking place tonight, the New York office of Arnold & Porter has announced bonuses. It appears to be following the example of other non-New York firms — e.g., Covington & Burling, WilmerHale, and Sidley Austin — and paying its New York associates better than their non-NYC counterparts.
Full memo after the jump. Some brief observations, from a tipster:
A word of explanation: bonus structure is very different between the D.C. office (which I believe has a tiered formula), and New York, which has in the past had a flat 1950 hours requirement, with some other types of hours counting toward that 1950. Note the tying of special bonus to 2000 client billables (this is going to cut out some, don’t know how many).There is also confusion in the ranks about whether the special-bonus-tied-to-2000-billables thing includes pro bono hours. On my reading, it doesn’t.
Note also the VERY weird “firm citizenship” requirement. Timely billing!? Oh noes!
You can read the memo for yourself, after the jump.
ARNOLD & PORTER — 2007 ASSOCIATE BONUS MEMORANDUM
To: New York Associates
From: Richard M. Alexander
Date: December 12, 2007
Re: 2007 Bonuses
As we have previously reported to you, it is the Firm’s goal to pay bonuses to our New York associates consistent with the prevailing practice of firms based outside of New York but having offices in New York. In awarding such bonuses, we will consider the following criteria as set forth in the June 2007 memorandum from the Management Committee regarding the Firm’s associate bonus program: productivity, quality of work, efficiency, responsiveness to clients, results achieved, compliance with client guidelines for outside counsel, and firm citizenship. “Firm citizenship” includes participation in efforts to expand the practice of the firm, compliance with all firm policies (including non-discrimination and non-harassment); volunteering for assignments when one has time available; reporting time daily; serving on firm committees when requested; participating in recruitment; serving as a mentor; working cooperatively with one’s colleagues; and pitching in when serving the firm’s clients requires exceptional effort.
Year-end bonuses: For 2007, associates who (i) have logged 1950 billable hours (of which 150 hours can be pro bono time and 50 hours can be business development/non-billable travel time) and (ii) otherwise satisfy the criteria set forth above will be eligible for the following bonuses:
Class of 2007: $35,000 (pro-rated)
Class of 2006: $35,000
Class of 2005: $40,000
Class of 2004: $45,000
Class of 2003: $50,000
Class of 2002: $55,000
Class of 2001: $60,000
Class of 2000 and senior: $65,000
Special bonuses: This year, the Firm will award special bonuses to eligible associates. To receive a special bonus (which will be paid in addition to the year-end bonus), an associate must (i) have a minimum of 2000 client billable hours for calendar year 2007 and (ii) otherwise satisfy the criteria set forth above. The special bonus range is as follows:
Class of 2006: $10,000
Class of 2005: $15,000
Class of 2004: $20,000
Class of 2003: $30,000
Class of 2002: $40,000
Class of 2001 and senior: $50,000
The Firm will use the twelve-month period from January 1 through December 31, 2007 for calculating hours for New York associates for bonus purposes. Associates who are on leave during the year will be eligible for pro-rated bonuses. For associates who arrived during the year, any bonuses paid will be pro-rated based on the number of weeks associates are with the Firm. For associates who arrive during the year or who work a part-time schedule, the hours required and any bonuses paid will be pro-rated based on the number of weeks the associate is with the Firm. An associate must have been at the Firm by September 4, 2007 to be eligible for a bonus. All our bonuses are paid only to eligible associates who are employed by the Firm on the date the bonus is paid. Year-end bonuses will be paid on February 1, 2008, and special bonuses will be paid in two installments — one-half on February 1, 2008 and one-half on July 3, 2008.
We are fortunate to work with so many talented associates. We thank you for your exemplary client service, dedication and other contributions to the Firm. Happy holidays.
cc: New York Partners and Counsel
(66) Comments
Comments
Wasn't OMM's bonus meeting today? What happened?
I hear the OMM meeting was confused - no clear announcement.
Someone who was there should send a write-up to Lat.
Why hasn't anything been said about the OMM meeting? It's 5:00PM...
you have to wait 6 months to get the 2nd half of the special bonus? why? to keep associates from leaving? that's a lame system
you have to wait 6 months to get the 2nd half of the special bonus? why? to keep associates from leaving? that's a lame system
you have to wait 6 months to get the 2nd half of the special bonus? why? to keep associates from leaving? that's a lame system
Guys in my high school used to write snippets of code to delete posts they did not like. It was no big deal. However, they became just as annoying as those idiots who feel pleased with themselves because they are the "FIRST" to post or those who feel the need to share their hangups about WGWAG. In any event...enough already!
a+p has like 80 attorneys in the city. not a player in ny, but the offices at 399 pahk are pretty nice
Guys in my high school used to write snippets of code to delete posts they did not like. It was no big deal. However, they became just as annoying as those idiots who feel pleased with themselves because they are the "FIRST" to post or those who feel the need to share their hangups about WGWAG. In any event...enough already!
so the lack of clarity at the OMM meeting means they ain't getting jack and they don't want to tell the associates.
CLASSY!
I heard OMM announced that this year's firmwide retreat will be at the Pasadena Ritz.
what is non-billable travel time? at my top NY firm, travel time for clients is billable.
The people who bitch about Frat Stud et al are just as annoying as the people who flag and bitch about escort ads on Craigslist's M4M personals.
Chadbourne & Parke matched today.
Chadbourne & Parke matched regular and special bonuses in all U.S. offices, but tied to hours requirement (1900)-- Paper memo
Deferring 1/2 of special bonus to July is not a match.
deferring to july is budget. seriously budget. does A&P really need the float that badly? sinking ship.
But is time travel for clients billable?
Top NY firm employee: you can't deduce that non-billable time might include travel time that is not for clients?? Say for business development, presentations, training at other firm offices, etc.
updated NY list of shame anyone?
FYI, the OMM compensation determined that it will only be matching the special bonus in NY. It will be giving the special bonus to LA area associates, and it is hoping Gibson, Latham, and PH will follow suit to keep everyone calm in CA. They came to this conclusion based on information that Gibson, Latham and PH were not inclined to extend special bonuses in L.A., and will certainly be glad to hear OMM be the first to announce this decision.
FYI, the OMM compensation committee determined that it will only be matching the special bonus in NY. It will NOT be giving the special bonus to LA area associates, and it is hoping Gibson, Latham, and PH will follow suit to keep everyone calm in CA. They came to this conclusion based on information that Gibson, Latham and PH were not inclined to extend special bonuses in L.A., and they will certainly be glad to hear OMM had the balls to be the first to announce this decision.
FYI, the OMM compensation committee determined that it will only be matching the special bonus in NY. It will NOT be giving the special bonus to LA area associates, and it is hoping Gibson, Latham, and PH will follow suit to keep everyone calm in CA. They came to this conclusion based on information that Gibson, Latham and PH were not inclined to extend special bonuses in L.A., and they will certainly be glad to hear OMM had the balls to be the first to announce this decision.
"Top NY firm employee: you can't deduce that non-billable time might include travel time that is not for clients?? Say for business development, presentations, training at other firm offices, etc."
True, but that is not what the memo refers to. A&P does not have the balls to bill its clients for travel time, and it also does not give credit to associates who have to travel.
Finishing the year with just under 2500 hours and we're not getting special bonuses or matching market. How awesome is that!
Anyone know a good headhunter?
Why aren't Philly firms giving out special bonuses? The big firms in Center City are some of the top in the country. White & Williams, Blank Rome, Ballard Spahr, just to name a few. We at least deserve a match to 165 with the rest of the country.
Who cares about Philly!? Don't you dare try to inject that city into the discussion. No one cares about Philly. They're not close to market anyway.
Lat, delete all references to Philly. I can write a few snippets of code to automatically do that, it's super easy.
what is center city, and who are those top firms you listed?
philly has low PPPs, low billing rates, and accordingly, its associates are poors.
So if you are at OMM NY and getting the special bonus but expect to be fired for not making your hours, what should you do with the money?
6:57 - I thought it was either/or, not both. Either way, I'd invest a good chunk of that bonus in resume paper.
This is NOT a match if they are excluding credit for pro bono hours. It is an outright screwing.
Arnold & Porter encourages everyone to do pro bono. They claim the pro bono work counts every bit as much as non-pro bono, so long as you keep it to 150 hours (or more with firm approval). And they preen about their high Am Law ranking among firms doing pro bono. They use it to recruit civic minded women lawyers like me. But then -- in December when it is too late to do anything about it -- they tell all the associates that they will be penalized for having worked on pro bono rather than client billable matters during the prior 11 months and that the p.b. hours count for zero? I don't think Covington, Wilmer, or any of the other matching firms have pulled a no-warning, ex post facto stripping of credit for pro bono. What a load of crap.
Have to agree with 7:29. A&P has to expect their associates to stop pro bono altogether after this. Firms like A&P have transparently used pro bono hours to climb life-style rankings, but now screw associates over it.
For those firms that have previously set hours minimums, like A&P and its 1950 w/ 150 pro bono, it's dishonorable to decide those targets weren't enough only after people have hit them.
I would feel screwed if in your shoes.
This is ridiculous. As a DC associate, I am outraged over this. The NY associates suck...really, they are subpar...(as numerous posters mentioned before, the associates who work at A&P in NY are not the same associates who get offers at T10 or even people who could get offers at A&P DC). They are the lowest billers in the entire firm. I billed over 2400 hours this year and to only give the the NY associates a special bonus is a slap in the face. They have insulted each DC associate with this bonus structure.
It seems like firm after firm is just looking for ways to screw associates out of the special bonus. Essentially after the first firms announced, no one is really matching.
ATL base post on this please!!!
Amen 8:02, amen.
8:02 - these bonuses are about the scale in the local market. I'm sure there are plenty of great lawyers in Detroit, too, but their cost of living is lower, and their legal market not nearly as competitive; they can't compare themselves to the New York scale.
And if the A&P NY associates bill as little as you say, they won't get the bonus anyway: there is an hours threshold.
What kind of a nut complains when they earn $160K + $35K regular bonus + $10K special bonus?
Any of you ever have real jobs? In a real job, you make that kind of money after working for 25 years and being really good. Not your first year out of school with no experience and no real skills yet.
You folks need to get some kind of perspective.
6:35, do you work for my firm?
8:02
Update your resume and call a recruiter. If you want a job in New York you can get one and increase your salary substantially. You can also work for Skadden DC or any of the other firms that pay their associates across the board. If you're good enough to work at A&P DC you can work for a firm that pays the special bonus without ridiculous conditions. A&P and most firms won't pay you one thin cent more than they think they have to. It wasn't until a few years ago that A&P started paying a bonus for hours below 2400 and then it was only $30k. Blogs like above the law have shamed firms like A&P into acting right. I understand your frustration, but you're angry at the wrong people. It's the partners that are screwing you over. The associates in New York bill according to the work they have to do. If the partners in that office don't work them hard, then they won't bust their ass. And while they may get paid more than you do, I'm sure that your house in the DC area beats the hell out of a NY associate's sh*thole $2500-3000 1 bedroom in Manhattan.
These "perspective" comments are idiotic and the reason that lawyers are poor (one of at least) relative to their finance colleagues. Read dealbreaker and note the refreshing absence of this nonsense. I have perspective buddy, I live in NYC - I am the poorest guy I know that doesn't wear a uniform.
8:02, just to set the record straight: the A&P associates I know who work in the NY office are intelligent and work their tails off.
what about the other big chicago firms? did no one follow sidley? what about jones day, winston, mayer, etc.?
7:29
I used to drink the Kool-Aid too. A&P partners used to say to me with a straight face that associates cost the firm money in their first few years of practice in written off time, training, etc. That's a lie. Partners may write off your time and claim it as their own, but they damn well make sure that they get paid. I've seen partners ADD time that I never put into the system. Don't believe all the pro bono has equal dignity with client billable work line of crap. Do it because it makes you feel good and because it might let you do things you can add to your resume, but when push comes to shove like it is with special bonuses partners will use it officially or unofficially to cut your throat. A&P is being surprisingly upfront with holding it against their associates. At the end of the day partners are at least as greedy as we are and will bend over backwards to keep every dime they can. If you don't like it, quit, but we are all very replaceable. Look at how Thacher Proffit screwed their first years before their partners took a hit. That's about how much loyalty you can expect from your A&P. Take the money for as long as they'll pay you. If someone offers you more money then think seriously about jumping ship. Don't let those 30 year partners b.s. you about how great A&P is. It's great because they have hundreds of associates pumping out the hours giving them millions in PPP. Recall A&P's ex managing partner's rant about how terrible the increase in associate salaries will be for associate QoL. He made millions per year for years without paying bonuses.
I was at the OMM NY meeting today. Here's the deal:
The "market" bonus will be determined in the usual fashion, basically a combination of your review and hours (including pro bono). There is no bright line on hours for this bonus.
The "special" bonus will be given to associates who get at least an average review (meeting expectations) and who hit a minimum billable hour requirement (also including pro bono). This number has not been finalized but will be no more than 1950. The billable hour requirement may change a little for different class years.
No idea what's happening in other offices, and I don't know if this qualifies as a "match." But this struck me as more than fair.
At least A&P is paying bonuses this year ... unlike last year when their neighbors Hogan and Covington paid decent bonuses, and my friends at Latham got monster bonuses (multiple six figure awards at the midlevel and up). This is pretty insulting for A&P. Polishing the resume off now.
Does a "true match" have to be paid in a lump sum? If some firms are paying in two installments, they're not actually matching dollar for dollar since their associates are not getting present value.
I am top 5% and Law Review. I was seriously considering A&P-NY, because I want to go to a solid branch in NYC and A&P has been here for something like 20 years.
But there is no f*cking way I would go to a place that pulls this kind of bait and switch. I mean, you dont want to match? Fine. Say so. But dont play this BS where you wait until the end of the year after everyone has worked to meet a target and then create a whole new hours target w/ no pro bono credit. And dont then claim that you are matching the market. What is that BS? If they can pull that shit, who knows what else they might put over on their associates. I will look to other top quality branch offices in NYC.
NYC 2L: I think the firm will survive without you. It will be hard, but somehow they will manage to serve their clients without your summer associate work product.
Get over yourself and study for finals, assclown.
NYC2L: Your sense of entitlement rings of everything A&P NY attempts to avoid (with their unparalleled 20 years of NYC history?). A lot of the firms that didn't truly match gave themselves wiggle-room, and I think that echoes the current economic climate.
You know nothing and your fellow students suspect the same. Good luck with your exams.
So if you worked all year with the goal of 1950 in mind to be bonus eligible, and you wind up with a total of say 1980 hrs, thinking you are all set for bonus purposes and have done everything expected of you, you still get SCREWED out of the special bonus? THAT SUCKS!!!!!!!!!!!
Why the 50 extra hours? Did they look and see that there were a whole slew of associates between 1950-2000 that they could avoid shelling out the cash to???
8:40 am - Nice to see that A&P partners are writing in to let potential recruits know what they really think of them. We should all take notice.
Apparently, the only entitled ones are A&P partners who are entitled to move the goal posts 2 weeks before the end of the year so they can preserve every last dollar of profit for themselves.
I do not know what you mean by wiggle room. Please identify one other firm that changed both the number of hours and type of eligible hours for the special bonus. Just one.
9:31: It's not 50 extra hours. It's more like 250 extra billable hours, if you count 1750 billable, 150 pro bono and 50 business development (total: 1950). As to timing, yeah, it was short, but many partners told associates about the special bonus requirement weeks ago. Considering that what is "expected" of you for the special bonus is still only 2000 "client billable" hours, getting to bill less than that and get paid market + regular bonus doesn't sound as horrible as you make it sound.
Re 10:10pm:
A&P has paid a bonus in the past to associates that bill over 1950, then 2200 and then 2400. They are decent and better than Hogan's.
9:56 - True, I hear your point. But still, they certainly could have case a wider net with the special bonuses. How many associates were eligible for the special bonuses? A pretty small number I am assuming.
9:31: I don't know how many associates were eligible, but my sense is quite a few. My esteemed colleague in DC who posted last night (8:02 p.m.) is sorely mistaken about how much the associates work in the NY office. The office on the whole has been very busy this year. Some of us hit 2000 hours a long time ago.
Shame on A&P for not including all pro bono hours. They used to have a policy of including upto 15% of pro bono hours as if they were billables (thats 300 hours out of 2000 for you liberal arts majors). They were revered on campuses for this - but now they just ruined their reputation.
Amen 10:58. A&P used to have an amazing pro bono program and was serious about encouraging associates to spend up to 15% of their time on pro bono matters. NO MORE! Instead you get screwed for taking on pro bono matters -- and the firm isn't even being shy about this shift being made public.
To: 9:56 AM (on Dec. 13, 2007)
You wrote "As to timing, yeah, it was short, but many partners told associates about the special bonus requirement weeks ago."
That is entirely unfair and unethical if some A&P partners tipped off some A&P NY associates that the hours requirements will be changed BEFORE the firm officially announced the changes to all the A&P NY associates. Hearing that some A&P partners have done this makes me really upset and VERY disappointed in the firm. So in essence you got to plan your schedule accordingly so that YOU could make the special bonus, meanwhile, the rest of the A&P NY associates who didn't get this inside information had no idea that the firm would set new hours requirements halfway into the last month of the year. So, Congratulations to you A&P NY associate who got tipped off and benefited from the inside info you received and took advantage of, you're just as dishonest, disappointing, and unethical as the A&P partners who gave you the inside information.
11:09--there's more to the decline of the A&P pro bono program than simply the firm's (non) crediting of hours for bonus purposes. It used to be that pro bono was a great way for young associates to gain experience--you could bring in cases and handle them from start to finish, in a first-chair role. More recently, though, the pro bono cases are often run like any other billable case--associates do the grunt work, then the partners roll in to handle the high-profile work (trial, major hearings, etc.). And yet, as 7:29 p.m. noted, the firm still preens about the program to the outside world and to recruits. Can't say I regret leaving.
11:47: I first found out about the bonus when the memo was circulated yesterday, so thanks for the indictment. Not saying what was done was right, just saying that it is what it is.
PS: The statement about prior disclosure is based on a rumor that I heard, so I don't have any concrete evidence about who knew what when.
Whine all you want you useless bastards- every year there are hundreds waiting to take your place.
Hundreds? There are thousands. I dont know of anyone at G'town who got an offer at A&P (DC) who was outside the top 10%.
Hundreds for each slot not overall
The other disappointment from A&P's NY bonus announcement is that it is tied to a hardcore hours requirement (although admittedly not that stringent). In the past, the firm took pains to state that productivity in billable hours was only one issue considered in awarding a bonus, and certainly not a deciding factor. No such statement this year.