Associate Bonus Watch: Wilson Sonsini, Akin Gump (DC), Quinn Emanuel
Here are a few quick updates on the associate bonus front:
1. Wilson Sonsini: On Monday night, the firm issued a long and complicated memo, which we’ve posted in all its glory after the jump. Since we haven’t taken math since high school calculus, it went a bit over our head.
General reaction to the WSGR bonus news was less than positive. From one tipster: “My friends there are pretty pissed in light of Latham’s bonuses.” From another:
“Some constituent groups (those with low hours) are happy. Other groups (people who work for a living) are less happy. All associates outside of New York are upset that New York special bonuses were paid without a minimum hours requirement.”
Under the WSGR bonus system, in certain class years, a lawyer in New York who billed 500 hours less than her counterpart outside New York could wind up with a bigger bonus.
2. Akin Gump (Washington, DC): On rather short notice — the email went out at around 1 p.m., announcing a meeting at 5 p.m. — a meeting to talk about bonuses was held on Monday in the D.C. office of Akin Gump. Here’s the bottom line:
[T]he gist was that bonuses “ranged from $1,000 to 75,000,” which basically means that if you are a first year (or any associate who started in the fall) you got $1,000, and the most senior associates who are most valued got $75,000. Associates were also told that the average was $25,000. This was not broken down by class year, hours, or any other details that may tell you whether you’ll be compensated well or terribly.
Lovely. Guess they think transparency is overrated
3. Quinn Emanuel: At Quinn Emanuel, in contrast, management is fairly transparent, and communication is relatively open (at least by Biglaw standards). How many senior partners of major law firms write open letters to ATL, as John Quinn did recently?
Anyway, two pieces of news. First, yesterday QE gave supplemental bonuses today to laterals, recalculating how they pro-rated (a subject of prior controversy). Second, they provided some information — albeit not terribly specific information — about billable hours and 2008 bonuses. Memo after the jump.
WILSON SONSINI GOODRICH & ROSATI — MEMORANDUM — JANUARY MERIT BONUSES
From: Roos, John
To: wsgr. Assoc. & Other Non-Member Attys
Cc: wsgr. Members; Layzell, Stacey; Beley, Julie; Boyd, Chris; Timm, Carol
Sent: Mon Jan 28 18:06:28 2008
Subject: January Merit Bonuses
M E M O R A N D U M
To: All Wilson Sonsini Goodrich & Rosati Associates, Special Counsel, Of Counsel and Staff Attorneys
cc: Members
From: John Roos
Date: January 28, 2008
Re: January Merit Bonuses
On behalf of the members of the firm, I want to thank you all for your contributions to the firm’s success in FY08. Through your hard work and commitment to our clients, we’ve had another year of increased profits. The merit-bonus program reflects our increased profits and rewards those who have had the most impact on these results through the quality of their work and productivity.
Following our announcement of compensation changes for associates in most offices on May 1, 2007, which included increased base salaries, new chargeable hour requirements for the merit bonus and mid-year elimination of the productivity bonus, we had ongoing discussions with the Associates Committee to better understand the concerns and expectations of associates regarding compensation. We listened to the input from the committee and focused on key issues as we designed this year’s merit-bonus program.
Merit Bonus-Schedule
This year’s annual merit bonuses for associates, special counsel, of counsel and staff attorneys will be paid according to the following bonus schedule, subject to the performance criteria and hours requirements described below.
Performance Rating
Comp Year H3 E
2007 $10,500 n.a.
2006 $27,500 n.a.
2005 $30,000 n.a.
2004 $32,500 n.a.
2003 $35,000 n.a.
2002 $37,500 $43,750
2001 $43,750 $50,000
2000 $43,750 $56,250
1999+ $43,750 $62,500
Performance Criteria and Hours Requirements
Our goal is to provide a performance-based, competitive compensation program that emphasizes individual performance and the quality of work, with consideration given for productivity.
Therefore, to be eligible to receive a merit bonus on the schedule, you must have received a performance rating indicating good standing. In addition, you must have recorded at least 1,800 eligible hours in calendar year 2007. Eligible hours include all chargeable hours recorded, pro bono hours, hours charged to accounts for WSGR legal services, and a cumulative total of up to 40 hours charged to Knowledge Management, Attorney Recruiting interviews, or preparing and presenting internal training courses that qualify for CLE credit.
Bonus awards range from 35% of the scheduled bonus at 1,800 hours to 100% at 2,000 hours, on a linear scale. To calculate the percentage payout between 1,800 and 1,999 hours, use the following formula:
(Number of eligible hours – 1,800) * 0.00325 + 0.35
The resulting percentage is then applied to the target merit-bonus amount. For example, if an associate classified in compensation year 2005 has 1,934 eligible hours:
(1,934 – 1,800) * 0.00325 + 0.35 = 78.55%
78.55% * $30,000 = $23,565
In response to feedback from the Associates Committee, this hours-criteria range represents a blending of the criteria in place at the beginning of the fiscal year (1,700 hours for 25% bonus and 1,900 hours for 100% bonus) with the new criteria announced last May (1,900 hours for 40% bonus and 2,100 hours for 100% bonus).
Additional Bonuses
Attorneys who recorded at least 2,100 eligible hours will receive a supplementary bonus equal to 10% - 20% of their earned annual merit bonus. The supplemental bonuses for all eligible associates total $1.2M.
Instead of the supplemental bonus described above, associates in our New York office are eligible for “NY Special Bonuses” that match those announced by many firms in that market and range from $10K to $50K.
All bonuses will be paid on January 31, 2008, by auto deposit.
Pro Rata Bonus Payments
Attorneys who worked part-time, were hired mid-year, or who were on leave of absence during the year will be evaluated at their annualized rate of chargeable and other qualifying hours to determine the percentage of the bonus that they will receive according to the bonus schedule. The bonus payment will be prorated for the portion of time worked in fiscal year 2008.
Fall associates hired by December 1, 2007, will receive a $10,500 bonus prorated for length of time employed during the fiscal year, with no minimum-hours requirement.
E-rated associates not meeting the minimum-hours requirement will receive $5,000 (or pro rata share thereof). Other eligible attorneys who do not meet the minimum-hours threshold will receive a $1,000 bonus.
Base-Salary Increases
Associates will receive base-salary increases for their compensation year using the existing base-salary schedule for their office, effective February 1, 2008. There are no changes to the base- salary schedules for FY09.
Additional Information
We will discuss the bonus program and answer your questions at a Town Hall Meeting to be held on Tuesday, January 29, 2008, from 9:00 – 10:30 a.m. It will be held in Palo Alto, 950 Terrace 2F, and will be video conferenced to all offices. To join the meeting by telephone only, please dial 1-xxx-xxx-xxxx and use pass code #xxxxxxxxx.
Please contact xxxx if you have questions regarding these programs. This memo will be posted on the firm’s intranet Associates Website for your reference. Please contact xxxx, xxxx, or xxxx in Human Resources if you have specific questions about your bonus calculation.
Thanks again for your ongoing dedication to Wilson Sonsini Goodrich & Rosati. We are proud of our achievements and look forward to strengthening our leadership position in the year ahead.
QUINN EMANUEL — MEMORANDUM — 2008 BONUS INFORMATION
From: “John Purcell”
To: “Associates”
Date: Tue, 29 Jan 2008 13:19:43 -0800
Subject: 2008 Bonus Information
In the state of the firm address, JBQ said the firm would announce hours requirements for bonuses in 2008 before the end of January. The purpose of this email is to do that.
We do not know what the amount of a “par” bonus will be In 2008. That will be determined by the market and how the firm does. However, we anticipate that the bonus standards will be no less favorable to associates than as follows:
For purposes of computing an associate’s hours billed, the firm will count up to 100 hours of AAIT and authorized pro bono time, combined, in the aggregate. The firm may reduce hours billed to reflect inefficiency or time that is for other reasons not properly chargeable to the client.
Associates who bill at least 2100 hours will receive a par bonus. Associates who bill at least 2000 hours but less than 2100 hours will receive at least half the par bonus. Associates who bill significantly more than 2100 hours may receive a bonus in excess of par. The amounts of above par bonuses will be determined by the firm at the end of the year.
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first
I thought DLA was announcing today - what's the word?
Wow that is pretty terrible for WSGR associates. Across town, Lathamites are making 10-20K more at lower levels and up to 50k (??) more at senior levels.
This is NOT a JD DC post!
Why is ATL coverage of QE so favorable? JQ's letter was a publicity stunt, for appearances only. Also, what's up with head hunters promoting QE like crazy? Is the firm giving them some sort of bonus? Wasn't it 40% before? Wouldn't it have been cheaper for the firm to pay that money to the associates in bonuses?
Wow. Does Akin usually pay such low bonuses to new associates?
So basically a WSGR 2003/2004 is making the same as a Latham 2006? Wow.
So an '03 at Akin NY (50k bonus + 30k special bonus) makes more than the most senior associate at Akin DC (75k). Wow.
Wilson associates got hosed! It's incredible how cheap that firm is. And last time the economy slowed down, they not only laid off associates, they pretended the layoffs were performance-related.
WSGR's partners are second only to Cadwalader's in cold-heartedness toward associates.
These are all TTT firms. Let's face it, the market movers already had their say, paid their bonuses, and watched the tag-alongs try - unsuccessfully - to keep up. Why even bother reporting on this?
ROFLMAO. Quinn is such a toilet. Not only are they shifting to a BILLED (versus billable) hours system, but they have a 2100 hour requirement. Latham, Gibson, Irell, Kirkland, Munger, etc >>>>>> Quinn. And for more reasons than just this.
LOL, at Quinn the requirement is now 2100 BILLED hours for full bonus, whereas its competitors remain at 1900-1950 BILLABLE hours for full bonus.
Absolutely shameful, Quinn. This explains why your selectivity has gone down the drain in the past 2-3 years.
So basically Quinn associates have to bill 2000 hours to get half of a bonus?
2:25: it's no longer billable hours, either, it's BILLED hours. So if they bill 2000 hours, they probably will NOT get half bonus, because at least a few of those hours are going to get cut (and not counted) by partners.
QE FTW!
actually, very few hours get written off at qe. rumor has it that JQ has to approve write-offs personally.
yeah 2:36- so associates underbill because partners are too scared to write-off time.
QE gets better by the minute. I would crap my pants if my bonus was bassed on hours billed. That means that my compensation is likely in the hands of a partner who wants to keep a client happy by cutting my time off of a bill. Why doesn't QE just make the billable requirement based upon hours that are billed and paid on by the client. If the client argues over a bill, those hours don't count, kids!
So...seriously, are Akin DC bonuses always that low, or is this year somehow abnormal?
The WSGR bonuses truly suck.
Some groups, the busy ones to which Lat's tipster referred to as people who "work for a living" should be livid at this bonus structure. Latham and Gibson's bonuses were better than this by quite a bit.
And it's really unnerving that the NY people got special bonuses because that office has hardly left a footprint in NYC and WSGR has been having a lot of trouble hiring good lateral partners there.
The message to laterals is pretty clear, so clear that I do not need to spell it out.
On way to work this morning: Latham buddy of mine passed by me in a brand new 911. Hey, we just went to the same law school, had about the same grades and started the same year. Just ASS-umed the firm I picked played in the same league and according to Chambers it still does. Funny enough also that we worked on opposite ends of the same transactions throughout the year. Not that I'm bitter or anything - hey, my Civic's more fule efficient...
Akin DC, while the bonuses are low, has a stellar reputation -- certainly much higher than the others listed here.
The Akin $1K bonus is the norm for the stub year at Akin, at least in Texas. And the bonus is completely discretionary, so office politics is more important than hours (and when hours are considered, it is billed, not billable).
3:15,
Akin's reputation is meaningless unless I can cash it.
I heard that a first year associate in one of Akin's Texas offices got a $1,000 bonus and is so pissed off that he is planning to quit.
Hours rarely, if ever, get cut.
JBW has to arrpove *any* cut in the bills. There is no 10% discretionary cut that most firms allow partners. And the process is draconian-- the partner has to writea memo, explaining to JBQ why he ran the lit so poorly that the hours need to be cut.
Anyeay, at QE, billed hours, for hte most part with only rare exceptions, = billable hours.
Is the QE bonus seriously based on hours billed? That is frigging horrendous. Woe to those working for a junior partner who eats shit from clients.
We just got an email from someone on the associates committee that DLA is sending out a general notice today or tomorrow morning about bonuses, and individual bonus email memos by midday tomorrow. And supposedly paid on Friday.
Nothing like waiting until the last possible minute!
3:33 --
Hi John Quinn! even if what you say is true, there is no way to prove it. The only hard evidence is that Quinn is now on a BILLED hours system. Second hand information that billed hours = billable hours is worthless on an anonymous message board, and consequently does not hold much weight.
Have Quinn right a memo to Lat explaining that billable hours are rarely cut.
DLA is a toilet, and you will be appropriately compensated. So please, let's not hear any complaints about your sub-par bonus tomorrow.
3:42 - "right"? lulz!
wsgr's still better than the cosmetic, fake bonus mofo gave out. after taxes i might be able to afford a new bike!
QE doesn't count hours logged, but charged?
Cheap!!
I see. You hire people from Harvard. If these Harvard kids are "inefficient," you cut their bonuses?
Usually, hours are cut when the PARTNER CAN'T GET HIS CLIENT TO PAY ITS BILL.
Who in their right mind would pick Quinn over Latham?
No real surprise here. And I thought Vault's for students, but they are spot on: L&W's v8 while Akin v33, WSGR v36, QE v43 aren't even close. Maybe they should break it up into tiers so every dumbass understands.
No real surprise here. And I thought Vault's for students, but they are spot on: L&W's v8 while Akin v33, WSGR v36, QE v43 aren't even close. Maybe they should break it up into tiers so every DB understands.
WSGR bonuses are pitiful. The Partners have been bragging for six months about what a great year it has been and how high revenues have been. It's just insulting to any person who billed over 2200 hours.
When will Cooley, Fenwick and Gunderson announce?
Anyone who references the Vault rankings in determining the value of a law firm either (a) hasn't practiced a day of law, or (b) is a first year who hasn't done anything other than doc review.
Get back to us when you pass a bar exam. Good luck in contracts.
WSGR partners are quick to admit that the firm does not compete with Latham, O'Melveny and the other LA-based firms, so I don't know what all the complaining is about. The quality, high-billing associates at WSGR should be updating their resumes to get jobs that will pay tens of thousands more for the same work.
Also of note, the upward adjustment of WSGR's base bonuses caps out at 2400 hours, because, as it was explained at yesterday's town hall meeting, they don't want to encourage people to bill more than 2400 hours. I love it, the burdens of a sweatshop with the financial benefits of a lifestyle shop.
Akin Associate, 2200 billable, $20,000 - below market. this sucks.
Akin Associate, 2200 billable, $20,000 - below market. this sucks.
Akin Associate, 2200 billable, $20,000 - below market. this sucks.
Y'all can keep your navel lint committees, your associate committee committees, and your lunch menu committees, Quinn is great. Billed hours essentially equals billable hours, at least for me. They cut no more than 2% of my billables last year. So you figure if you have 50 hrs above the requirement, you're safe. So the requirement's effectively 2150. That's high, but whatever. It takes a lot of time to do well in litigation.
Anyone who works more than 2400 hrs is an idiot and deserves no additional compensation.
"WSGR partners are quick to admit that the firm does not compete with Latham, O'Melveny"
Latham and OMM did not pay market bonuses while the NY-based firms down the street from them paid a lot more.
4:30-
Please explain to me again why Quinn is great? You just admitted a 2150 hours requirement to get full bonus. At Irell, you get full bonus at 1900 hours. Same or similar with Latham, Gibson, Kirkland, etc.
Now again, why is Quinn great? And to add insult to injury, isn't Quinn's PPP higher than all of the other LA firms? So the partners make more money, yet require 200+ more hours from their associates to give them full bonus. Sounds great to me!
4:16 - What's your point? (a) wrong and (b) wrong. Practicing for five years, two bars. Couldn't care less about Vault. Too ironic though that their jackass methodology is spot on when it comes down to the bottom line. Just in case no one told you yet: your Camry isn't a Merc.
unless you're intentionally padding, you can expect your hours not to be cut at QE. the JBQ personal approval is true
ATL got it right. This bonus structure works well for New York, juniors and the people who billed right to max, but nothing more.
It completely screws seniors and anyone who had to work like crazy this year.
Hard to understand why WSGR choose to keep the underperformers and unproven people happy, rather than the money-makers.
You certainly can't justify it by great partnership prospects anymore.
The only thing that makes sense (other than the fact they are really cheap), is that they are hoping for a little attrition in the mid-to-senior classes, and praying that it's the average associate, rather then their best associates. Risky gamble.
when does PH's bonus memo come out?
Akin also eliminated its long-standing longevity bonus of $60,000, given after an associate completes his or her sixth year. Apparently, those who have already put almost all that time in will get $10,000 per year, but for us first years, they just took away a $60,000 incentive to put up with this crap.
No word from DLA yet. Strangely quiet.
PH did not issue a bonus memo until early march last year and there is no reason to believe that it will be much, if any, earlier this year.
Because I love to work.
DLA said they would notify associates of bonuses and salary the week of Jan. 28, and bonuses and the new salary would be paid on Feb. 1.
Hopefully the delay is because after seeing Latham's bonuses, they smartly reconsidered and are raising their bonus payments.
Initially, they promised last year's scale, which would be grossly under even the lowest big firms. Hopefully they haven't stuck to that now poor idea.
What's the story with DLA this year? Where do they see themselves?
Does Akin pro-rate the $1K it pays to stub years?
4:25 -- No one in my group believes that. Wouldn't be surprised if the PPP is right up there with STB or Skadden.
Any bonus news re: Kaye Scholer?
6:45 - if no one on your group believes that Wilson isn't competing with LA or other national firms, why do they accept lesser compensation for the same work?
I agree that WSGR's PPP will likely be up and in the range of STB and Skadden this year as well; this makes the submarket bonuses even more offensive.
7:08 - To your point; we are all idiots. You get sucked into the hype that WSGR is just as good as the NY firms, but without the brutal hours. Heck, I give the same speech in every lateral interview I do. . . . "It's a great place. . . quality work . . chance to make a difference with small companies . . . get responsibility early on substantive work . . " Here's a tip for you all, I'm lying; I just need someone to dump my work on.
For 6:45, I don't think anyone is disputing that WSGR is a very profitable firm, and by all accounts had a banner year. Yes their PPP is high and growing fast (along with revenues).
But that doesn't mean they are sharing it with their associates at appropriate levels. The financial benefits for associates just aren't there.
As you know, WSGR is not a lifestyle firm. They have interesting clients, but they also work them extremely hard, and partnership prospects are quickly dropping to level of Latham.
With that model, the firm will have trouble with recruiting and retention if firms with equal or better practices continue to pay a ton more. That's a tough deal when the firm is set up to also lose a lot of talent to in-house opportunities and life-style decisions, as is the case with most SV firms.
I guess times have changed -- its actually starting to be embarrassing to be a WSGR alum, maybe I should take it off my resume. I actually got a call about returning to the firm but this move tells me all I need to know about that idea.
It's BS that the firm doesn't compete with LA firms (all of which have a big presence in the Bay Area).
The firm absolutely competes with them for partners, clients, and new hires. And they hold their associates to the same standards on quality and hours.
The problem is, after WSGR hooks you for a few years, then the partners will say "Our PPP is lower than Latham, so we're not going to pay you (mids and seniors) like them."
The partners are definitely reading from the same BS script, trying to defend these paultry bonuses. A few are still trying to play the "but you can count on making partner here" card, but most realize that is now a joke.
I'm still waiting for bonus news out of Jones Day DC. Any info???
Lat, is the policy that low bonuses get coverage but no bonuses get none??? If this is the case, it seems firms should wise up and pay nuthin.
7:08, 8:10, 8:17 -- double negative in response to 4:25, sorry. To be clear: everyone in my group believes we are right up there with STB, Skadden, L&W etc. At least, that's who's on the other most of the time. Not sure how the numbers break down internally, but would suggest calculating '09 bonuses based on group profitability.
John Roos says they "look at the market" when they decide bonuses. That means, "Let's wait to see what other firms are paying, and then try to figure out the absolute minimum bonus we can offer without being utterly and totally embarrassed." Sorry, John, looks like you guessed a number lower than the absolute minimum.
That's just WSGR partners being greedy, which is nothing new and at least makes sense. What is incomprehensible is that WSGR is screwing over the associates who do all the work, while throwing a bone to the low-billing whiners that they want to get rid of anyway. What the hell?
Roos says, "We don't want anyone to bill more than 2400 hours." Those crazy associates. Try as we might to stop them, they just keep working too hard! We try to stop them but they just won't listen!
PH announced that it wouldn't be announcing until March, as usual.
The question is for Akin, did anyone (besides Jones Day) pay LESS than they did in DC? The "average" of $25,000 is across all associate classes, so younger associates average even less than that. Newbies, laterals beware!
WSGR's no reward for 2400+ policy should be respected. People need to have a backbone. Anyone who bills in excess of 2400 does not have one and/or has no life.
LAT -- why do you ignore Jones Day? Post a thread on JD DC for crying out loud!
11:05 -
Yeah, Roos and his crew definitely decided to give associates what they regarded as the bare minimum. It certainly does screw the most productive associates, and heightens the likelihood that they'll jump ship.
One of the things that's happening, especially in litigation, is that second-rate lateral partners are being brought in at an alarming rate, folks w/no significant business to speak of (there are exceptions, of course).
Coupled with the recent loss of Feldman to Quinn, I wonder whether litigation is in trouble. All it would take is a large defection of associates or a few defections of key partners. And given these paltry bonuses, the former is getting likely even if the latter isn't.
Not pushing associates past 2400 sounds nice in theory. But try turning down work in the midst of a big deal or huge litigation. It ain't happening.
WSGR doesn't have a huge pool of associates to throw onto projects. It's a bunch of small working groups, and the working partners keep going back to the same trusted mid/senior associates.
That's what's so funny. WSGR literally capped the pay of the go-to-associates who do all the work.
Sonnenschein very quietly paid its bonuses today, no memo, no announcement, nada...which is essentially what the bonuses amounted to. I guess that's how they roll so that no one can forward the memo to ATL for a good laugh.
NO bonus for anyone under 2050 hours. 2300+ hours in non-NY major market (think CHI, CA, DC, etc.) nets you HALF the market scale bonus (not including any special bonus mind you, just the regular bonus part).
Just looked at bonus schedule for Wilson that everyone is complaining about and my bonus is TWO-THIRDS of that. Just looked at Sheppard Mullin DC (for chrissakes I haven't even heard of this firm before) and my bonus is TWO-THIRDS of that.
At least we got more than McDermott associates who seem to be the butt of all jokes...oh wait, they actually fixed their bonuses, so I'm at about TWO-THIRDS of that too...joke's on me. What's worse, Sonnenschein knew the market before it announced, so it can't even pretend like it miscalculated. Unless they thought we were all in Kansas City and mistakenly paid bonuses according to the Missouri market scale.
So in conclusion, 2000 hours at "mean, nasty, competitive" lockstep firm = full market bonus (and maybe even special). 2300+ hours at "gentle, midwestern firm" = HALF market bonus.
The next time I eat out with my law school friends from Winston I'll be too embarassed to even talk about bonuses, knowing they got paid double to work about 300 hours less. And to think I had an offer there...SMACKS SELF IN THE HEAD.
You have to be kidding. How in the hell can you admire a firm for keeping every penny of added profit made by the hardest workers.
When associates are working that hard, they don't have a choice. You think they wanted to work through all weekends, holidays, and vacations for free? Please!!
If you want to stop such high billing, then you monitor their partners. It's not like it's a surprise when an associate suddenly ends the year at 2600.
Haha dummy. I'm at a lockstep NYC firm and billed 1900 this year with good reviews. Banked 100k bonus check. Go home and cry to your mommy. Your firm only pretends to play with the big boys.
Let that be a lesson to you law students out there. "How this firm is not your typical NYC law firm" = smokescreen for why we don't pay you as much. Money talks and marketing is just BS.
Lat you need to do an open thread on firms that don't give out memos. Firms are catching on and they're using this method to keep associates from tipping you (any scrutiny). You gotta come up with a method for peeps from those firms to anonymously share bonus info.
How much do sonnenschein associates get for 2100 hours...coupon for a big mac?
11:55 That's a pretty ignorant thing to say. First, for the reasons 12:49 mentioned. Second, because there is a difference between the notion of announcing AFTER THE FACT that high billers wont be compensated for the work they did last year. If they had that as a policy up front, then it would be a little different. At least you would know before you did the work that you wouldn't be paid for it. Also, its pretty easy to get caught out and find yourself in a high billing year. What do you do if you are already productive, and an associate in your group left the firm. It won't be looked on too highly if you just shrug your shoulders and tell the partner that you wont be willing to help retain the clients that the former associates were servicing.
As for the WSGR bonus announcement, I agree that it is puzzling to poke a stick in the eye of the most productive people in the firm. I just don't get it.
As for the "reasons" given for the bonus, they don't pass the laugh test. The fact is that the firm is in DIRE need of midlevel associates who are going to be basing their decision to lateral on two things: compensation they expect to receive as a senior associate and partnership prospects. The firm struck out on both counts... badly. The result, little prospects for laterals in the near term future after the current announcement, and associates already at the firm getting squeezed more and more (unless they leave or business dies off) into and past the "2400" zone in order to try to serve the same client base. Makes no sense....
Some other gems from the town hall meeting:
Roos says that "you may pick some firms for comparison and we could pick others." Anyone in their right mind picks Latham as the obvious competitor, so this is an admission of sorts: WGSR does not consider itself a top tier firm competing for a national talent pool and instead considers itself a regional player (which is how it determined bonuses).
Roos says that the 2400 top-out is based on "feedback from the associates committee" that high billers should not be given additional bonuses so as to supposedly prevent providing an incentive for such behavior in the future... to which a member of the associates committee then forcefully pipes up something to the effect of "for the record, you never received a communication from the associates committee saying that. We strongly believe that people billing in excess of 2400 hours worked damn hard last year and deserve to be compensated fairly for it. We don't think people should be working that hard as a matter of firm policy, but if they end up there anyway, they should be paid." Roos' response? Something along the lines of: "Sorry if there was a miscommunication [as if it was some passive oversight on the part of the firm] but that was the impression we were under." Priceless.
Management at WSGR seems to want it both ways: top tier talent to work at a "market leader" firm for a bargain basement price. Its not a game plan that will lead to long term success.
Official word on bonuses (as well as individual memos) are supposed to be circulated by midday today for DLA. Look for disgruntled postings later this afternoon...
At Akin Gump DC, ~2300 billable and pro bono = 20K for a third year.
wow.
WSGR to 2500!!
DLA announced salaries for 2008 in each office.
any word on dla's bonuses?
For WTF, that's a pretty good account of WSGR's screw up (or miscomunication) on how high billers were treated. I got the scoop last night.
The associates told the firm to put most of the money into the full bonus (at 2100) and take away all the easy to reach "high billing" targets, so they won't have an incentive or be expected to work much beyond 2100.
The caveat was that the associates also said, if we do this, you have to hold something back for any associates that get slammed in a rough year. The idea was to give significant bonuses for any hours over 2,400, b/c those are hard hours and clearly the associate had no choice.
Somehow WSGR spun that into "the message we want to send is that when an associate gets killed and has no choice but to work brutal hours, the best thing to do is to let all the partners keep all the money."
That was a big screw up. When Doug Clark (head of litigation) heard it explained he jumped in to say "That can't be right, let's talk about that." But that's when Roos said they must have made a mistake and will try to fix next year.
The rumor is that the firm put in the cap at 2400 so it could fund over $600,000 of special bonuses for New York associates who worked well below 1800 hours. That's sick if true.
No word on DLA's bonuses, but they didn't announce any increase in their email to associates, so that is a bad sign. Individual memos are supposed to go out shortly.
someone on here (during the fall recruiting thread) said that their bonus structure had the potential to pay their associates above most other firms with the exception of wachtell. any truth to this? anyone want to explain how it worked?
Akin's structure stinks. They keep on saying that they give smaller than market bonuses so that when the Gump has a bad year, the bonuses stay the same.
When is the last time that the Gump had a bad year.
EXCUSES EXCUSES EXCUSES for not paying anything like market bonuses.
PITIFUL!!
If you want a market bonus, STAY AWAY!!
Hard for me to understand what all the WSGR folks are bitching about.
Yeah, you guys are below Latham (as is every other non-NYC firm), but these payouts are still pretty high relative to everyone else, particularly if you made it 2400.
Seems like you guys are more pissed about how the money was moved around (i.e., away from high billers and seniors, toward juniors and NYC). So while the distribution may suck for some, it seems like the firm still paid out a lot of $$ ... no???
10:26 - Latham is also a non-NYC firm so I don't understand your point.
For 10:26
My point is that why should WSGR associates be so pissed if their bonuses are at or above those of most other non-NYC firms? As I said, the only real complaints I can see are:
- Their bonuses aren't as high as Latham, but that's true for just about every Lawyer at a non-NYC firm.
- They don't like how the money was distributed. Looks like the seniors & high billers had a lot of their expected money diverted to really bump up the junior classes and salaries of the NYC associates. But that's more of a complaint about allocation, rather than being cheap.
I'm not at WSGR, nor am I defending it. Perhaps the seniors and high-billers are upset b/c they thought they were promised that the firm would either give them a bigger cut in advance of killing themselves, or that they would keep pace with Latham. If true, I understand it.
But no matter how you look at it, they did a heck of a lot better than I expect Heller (my firm) to do.
When is the last time the Gump had a bad year? 2007, apparently, cuz the NY parvenu went nuts. It's off with the heads of many ... watch the stampede toward the doors.