Associate Bonus Watch: DLA Piper
Today brings us bonus and salary news from DLA Piper, the biggest of all Biglaws. Back in November, the firm was crowned by the National Law Journal as the nation’s largest law firm (with a whopping 3,623 attorneys).
DLA Piper may be the biggest — but not when it comes to bonuses. From a disgruntled tipster:
It’s official: no special bonuses for DLA Piper’s New York office. But first year associates in our secondary offices got raise to a $160,000 start. I attach the chart. [Ed. note: It’s after the jump.]The firm did it in a very slimy way with no official announcement, just individual notices of bonuses. Pretty funny after last year’s heralded promises to stay with the New York market… I guess Frank and Lee thought: “never mind.”
So was DLA Piper managing expectations when it issued a somewhat gloomy email earlier in the month? From a few weeks ago (around January 8):
I’m an associate at DLA Piper and we got a firmwide email discussing the firm’s 2007 finances and applauding us all on a job well done. They exceeded expectations and last year’s totals. However, the email closes with this paragraph:“While we are pleased with the results for 2007, we approach 2008 with caution, given the uncertain economic outlook. We intend to be conservative in both our budgeting for 2008 and in our financial management.”
It may be nothing… but I feel like they are bracing us for something, whether it’s crappy bonuses or no pay increase. Good times!
Today’s bonus and salary memo, plus the firm-wide salary chart, after the jump.
DLA PIPER — MEMORANDUM — ASSOCIATE BONUSES AND SALARIES
To: All Associates US
Cc: All Partners US; All Of Counsel US
Subject: Associate Compensation - Message from Frank, Lee, and Terry
As we communicated earlier in the year, DLA Piper’s financial performance in 2007 was again strong. Our results reflect the soundness of our overall global business strategy, the strength and breadth of our practices, and our commitment to providing superior client service. Our associates are central to our success, and we greatly appreciate your contributions. Our associate compensation approach is designed to recognize and reward your contributions fairly and consistent with prevailing market conditions.
Our 2008 salaries are $145,000 for new lawyers joining the firm in Atlanta, Philadelphia, Phoenix, Raleigh, Sacramento, Seattle, and Tampa. In all other offices, the starting salary for new lawyers will be $160,000. As was the case last year, with limited exceptions for a very few class levels in certain markets, similar lock-step increases will be applied for other class years in each of these markets. We will be publishing an updated 2008 Associate Bonus Plan separately within the next few weeks.
Consistent with our overall performance standards, those who meet our high performance expectations will receive the class year base salary increase that has been set for their practice and market. You will each receive an individual communication shortly confirming your 2007 bonus and 2008 salary. Increases will be retroactive to January 1 and included in paychecks dated February 1. Bonuses also will be paid on February 1.
While we expect 2008 to be a challenging year, especially during the first six months, we look forward to our continuing success. Thanks again for all you do for the firm and, most of all, for the outstanding service you provide our clients.
******************************
Here’s the chart. It’s a thumbnail image, so click on it to enlarge:
(85) Comments
Comments
so what are the regular bonus amounts?
Aw crap. I make less than people in BALTIMORE?
They have law firms in Baltimore?
Nice to see the concerted effort by firms to screw Philly over continues unabated. 160k in Baltimore? That'll buy you the nicest crack house in town.
there really are alot of crack houses in Baltimore
have to agree with 2:30 - this is an incredible slap in the face to the Philly office. What a joke.
Gallion OUT!
Anybody have information about DLA bonuses for class of 2003 in DC?
DLA decided through its bonus policy that it doesn't want to be a top international firm. Too bad.
Cravath need to bust out of this mediocrity and go to 200.
the philly market is such a disgrace - look at the discrepancy with comparable markets and even with markets where COL is conceivably less, its getting pathetic.
Looks like DLA can't compete for top talent.
2:29/Gallion:
Frank Burch is one of the firm's two chairmen... and he's based in Baltimore. If nothing else, DLA has consistenly demonstrated that it will set the market in Baltimore. With respect to other jurisdictions, not so much.
And yes, the bonuses are below market, but this isn't a big surprise. We knew what the bonuses would be like for quite some time.
When is Philly going to raise to 160 - more important when is Dechert going to raise to 160
2:43 = DLA partner.
There are some really nice crack houses in Baltimore.
Im surprised the top firms haven't increased salaries more and make a clean break from the rest, especially when there are $2mill PPP firms that can afford to pay way more than the $1mill PPP firms....but I guess firms pay as little as possible for as long as possible. But its obvious that if some firm with $1mill PPP can pay 160k, then a firm making $2mill PPP can pay at least double
Wow, Philly can't even match Austin, Texas! That is pathetic. There's really no difference between Philly and Camden, NJ.
DLA needs to pay a supplement.
2:45(1):
Trust me, I'm not an apologist for DLA. Get back to work on that reading comprehension.
i thought I'd heard that DLA technically paid above market last year by giving additional money to those that exceeded certain hurdles (2100, 2200 etc). Any truth to this? Is the way the current bonus structure is set up?
Philly = worst legal market in the country in terms of pay:cost of living. Any arguments with that?
DLA pays more for more hours, but overall, it's structure is now well-below market. They are going to have trouble from this move.
2:48 - don't let the door hit you on the way out
2:58, even I have to agree with that.
Try living in Seattle 2:58.
Top grads from Temple Law, Widener Law and Drexel should skip Philly and go straight to anywhere else. Philly is downright embarrasing.
The idea that Philly and Raleigh are on the same scale is patently absurd.
Seattle is pretty rough, too - agree with 3:04.
Gallion OUT!!!
DLA Piper sucks as hard as Pat's.
Can we please get back to the topic of this post? What were the #s these bonuses?
Any more word on bonuses? What is the base for each year? Does it differ depending upon office?
I work at DLA Piper, got a great bonus, billed under 2100, and I almost never work past 8pm or on weekends. I would never trade that for a few extra thousand...
In defense of Philadelphia, I currently work at one of the "big two" and I had several options when I graduated in '06, including firms to the north in NY. I am very satisfied here in Philly, and think the 145K translates to more happiness and wealth here than 160K will in most other places. For me, I've been to Texas and other cities on depos and would not want to move there for 15K more. People should look behind the numbers and they'll see Philly's a great town.
Why is Seattle such a bad legal market?
3:17: How much?
JT suggests that DLA Piper associates hire Scorpion of Mortal Kombat fame to assassinate DLA Piper's chairmen.
3:17 = DLA Partner
3:18 - you're missing the point. Philly IS a great town. But it clearly should be on the same scale as Dallas, Raleigh, Baltimore, etc.... The fact that it is not is a slap in the face to you and your colleagues. Period.
Seattle pay is too low as well (another great city otherwise).
Gallion OUT!
3:17 $$$?????
3:17 response:
1) I am not a partner
2) 50K
Bonuses in NY are the market bonus (not special bonus) at 2000 with a bump at 2300 that doesn't quite put you at where the special bonus would have, depending on class year.
DLA's bonus system is a national system (except NY), unlike the salary payscale that varies by office. A Tampa associate who bills the same hours as a Chicago associate gets the same bonus. The bonuses this past year started at 20K for a first year billing 2000, to 90K for senior associates billing 2500.
DLA's bonus system is a national system (except NY), unlike the salary payscale that varies by office. A Tampa associate who bills the same hours as a Chicago associate gets the same bonus. The bonuses this past year started at 20K for a first year billing 2000, to 90K for senior associates billing 2500.
I work at DLA. NY- no special bonuses. Market bonuses up to 2300 hours. No office-wide memo. People received individual notices of their bonuses or lack of.
I work at DLA. NY- no special bonuses. Market bonuses up to 2300 hours. No office-wide memo. People received individual notices of their bonuses or lack of.
everyone always focuses on the junior associate salaries in Philly when they speak about how far 145 goes in Philly vs 160 in NY. It is true that that 15k goes a lot farther in Philly, HOWEVER, look at the numbers for 8th year associates. 8th years in Philly are making about 200k, maybe 230k with bonus. At some of the top NY firms, 8th years made about 280 plus another 110k this year (with the bonus & special bonus combo). It's better to be a senior associate in NY.
Also, Philadelphia is basically a one horse town - Dechert. Maybe a 1.5 horse town if you count Morgan Lewis. There is a big drop down to the other firms in terms of the clients, projects, etc..
The non-NY bonuses for 2000 hours were significantly below market.
i've been an associate in seattle and in philly. seattle wins hands-down for worst COL vs. pay. my house costs half what it would in seattle and my pay is 50k greater.
3:50 - Let me start by saying that I don't work at MLB. I think 99% of anyone who knows the philly market at all would disagree with your post - MLB and Dechert have long been considered equals with respect to prestige. Dechert's inflated PPP is the result of one particular practice area and is not enjoyed by the entire firm.
Details: Class of '06, billed 2100, and I got 24K.
mmmmmm delicious, time to start poaching DLA
4:06--
Your ultimate conclsion is probably right, but you must have worked at a below-market Seattle firm if those numbers are accurate.
you know its bad when people who are mad about being stiffed got double what you did...
I imagine there will be an exodus from DLA soon.
The short is that Philly salaries are lower, because Philly lawyers can't bill as much. Clients won't pay it yet.
If firms could bill, they would, don't you think?
is there a market scale in seattle? i don't recall there being one when i was there.
DLgAy
That was a silly mistake not to pay the special in at least the nyc office. Was the money the partners put in their pockets worth the hit in their reputation?
Even if I am wrong with respect to Morgan Lewis's prestige relative to Dechert's (and I don't think I am) all that means is that Philly is a two-horse town with Dechert and Morgan Lewis heads and shoulders above the rest.
It doesn't affect my main point - It is better to be a senior associate in NY than in Philadelphia.
I worked over 2300 hours last year as a 2nd year at DLA. 40K bonus... How does that compare to other firms in big cities (not NY)?
what does "DLA" stand for?
Philadelphia is a glorified pit stop between NY and DC. Nothing more than a mere Port-a-Potty on the way to better things.
Akin Gump's didn't come close to matching market in D.C. (like half). Looks like I'm heading elsewhere. No reason to work the same amount for less money.
Unless they're making the associates work outside in August in Raleigh or Austin, there is no reason to work in the Philly office.
The pay is good in Baltimore, because Piper (remember way back all those years?) was based in Baltimore, and still has a large office there. They paid competitively with DC (like Hogan Baltimore) and still do. And, yes, the money goes a LOT further, but it's still not worth it to me.
DLA stands for:
Don't
Laugh
At WHITE GIRLS WITH ASIAN GUYS
Yeah!
4:53(2) - I completely disagree. We never stop in Philly when driving to NY. The gas/food centers on 95 in Maryland and New Jersey offer more variety and less hassle.
Can I get a job a DLA so I can make bonuses that are merely below market, and not ridiculously out of touch with reality?
D ont pay market,
L ose all our
A ttorneys
At least DLA pays more than most firms in Seattle. $145K is on the high end of Seattle compensation.
Of course, Washington state doesn't have income tax, so that probably helps. Still, the COL in Seattle is high, especially if you want to buy a house.
I'm at DLA and I already received a contact from a headhunter. Word gets out fast.
Down
Loaders
Anonymous
DLA finds its roots in the sketchy napster days - when everyone was downloading haphazardly and no one seemed to give a damn about the consequences. DLA was the first group to step up and address the problem. Having championed the cause for months, they then got bored and decided start an international law firm.
This is NOT a Jones Day DC post!
If Jones Day DC announced $1 dollar bonuses, I suppose this would warrant mention. I don't get it. Lat, have you been taken hostage?
Not only are Akin D.C.'s bonuses about half of market (even for those of us who billed 2200 or over), but the work is terrible. There are essentially no opportunities for professional development. Some associates will work at the firm for four or five years without taking a deposition. It's as if the firm is purposely trying to get rid of all mid-level associates (and that may be the goal; the rumor is that the firm has encouraged basically every mid-year to get a job with the government). My mistake for choosing a lousy firm. I'm getting out as soon as possible.
What's the freakin hoopla about? At least the associates aren't getting their butts shipped out
Actually, Clifford Chance is the "biggest of the BigLaws" -- nearly 4,000 lawyers worldwide. The DLA figure was worldwide as well.
CC New York also announced market bonuses (w/ special).
When I got the memo a few weeks ago, I thought they were lowering our expectations so they could beat them. Instead, they lowered our expectations and met them. Two headhunters have called me already. Looks like it's time to sell my house in Seattle. I'm finally ready to jump ship and move to a higher paying firm in a better pay:COL market. Way to go, DLA.
12:05 - I know who you are.
DLA proves that mergers equal greatness.
1:33 - I know who you are.
So what happens to DLA laterals? One of my friends is a 5th year lateral who qualified for a bonus at the cut off period. He made his hours but didn't get any bonus information other than his salary. Do these happen separately or something?
4:37 - Blank Rome is not a bad firm either, and pays its senior associates well.
7:45:
My understanding is that laterals don't get a bonus unless they've been at DLA for the entire calendar year. If he showed up in March, his hours are not pro-rated.
Can someone confirm? I actually heard this from a practice group leader.
DLA Piper pay a pro rata bonus as long as you arrive by somewhere around the end of August (don't know the exact date but I know laterals who arrived around that time and got a bonus).
Texas to 160.
Let's see, no state let alone city income tax, dirt cheap property, and NYC pay? Yeah, that makes a whole lot of sense. Doesn't matter who did it, everyone's going to hike to at least compete if not match.
What's next, Milwaukee and Minneapolis to 160?
Why don't the Seattle associates just suck it up and realize that no one cares about their po-dunk town? It's a regional market, through and through.
I was a lateral who started after DLA's standard August cutoff for pro rata bonuses. I negotiated a pro rata bonus before I accepted my offer (for just about 3 months) and it was actually pretty decent (unlike this year).
philly makes less than raleigh, NC. what a joke.