Our latest associate bonus news comes from Heller Ehrman. On Monday, we were alerted to their bonus meeting:
Heller has an all-associate video conference tomorrow (Tuesday, 9 a.m. PST) where, among other things, associate compensation will be discussed. Bonus checks are due on Friday, and no one knows what they’ll get in advance. (You have an idea based on last year’s grid, but that doesn’t account for the discretionary bonus, if there is any.)
They’ve been very quiet, but at a retreat at the Claremont in the Bay Area this past weekend, the opening presentation was extremely negative (although 2008 looks very good so far). A test run?
I don’t know if they’ve done it in the past, but this year associates were asked to justify the non-hours based portion of their bonus in a memo. I would not be surprised, given the recent Heller-related press, to see them go to a non-transparent bonus system.
Heller isn’t the only firm where associates are called upon to justify their bonus love. See also Akin Gump (item #2; outside New York).
Oh yes, so the Heller videoconference took place yesterday. If you’re interested in what transpired, it’s described after the jump.
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A Heller source provides this account:
[A] non-announcement announcement on compensation/bonuses. They’re listening, they’re “observing” the market, they’re thinking, they’ll “communicate” individual bonus information (that’s usually just via the check), and at some undetermined date, they’ll have a “comprehensive compensation communication,” i.e., a pay memo.
The thing many associates are unhappy with is that the current bonus structure has its priorities all out of whack from a firm business standpoint. If you’re not in NY, the first bonus isn’t available until 2100 hours. (The first, and largest, bonus — 2000 hours — was moved into base salary in mid-2007, as the basis for the famous Heller non-raise raise.) To make matters worse, the bonus for a third year at 2100 is $8k before taxes. What’s the point? I’d give the firm back it’s $5k (after taxes) if I could have my 100-200 hours back….
I love the firm, but have come to believe that they need to screw their heads on right re: bonuses.
There have been a few partner departures at Heller lately (see links below). If the firm’s bonus numbers disappoint, might associates start eyeing the exits?
P.S. It should be noted, however, that Heller also continues to name new partners, as well as to snag lawyers from rival firms. For a full listing of Heller’s hires, see press releases collected here.
3 More Partners Exit Heller Ehrman [ABA Journal]
Heller Lawyers Join Two Other Firms [The Recorder (subscription)]
Heller Trio Scatters [The Recorder (subscription)]