Associate Bonus Watch 2008

Associate Bonus Watch: Dechert Pays Market Rate, Plus $7,500 for Top Hours

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Dechert has been the subject of a lot of bad news lately. The associates still at the firm will be pleased to know that they will be getting a market bonus for hanging on this long:

We are pleased to announce that we will be paying base bonuses for 2008 to associates in each of our U.S. offices as set forth below. The following base bonuses will be payable to those qualified associates in good standing at the time the bonuses are paid who have 1950 hours (billable, pro bono and nonbillable in accordance with past practices) in 2008.

Class of 2007: $17,500
Class of 2006: $20,000
Class of 2005: $22,500
Class of 2004: $25,000
Class of 2003: $27,500
Class of 2002: $30,000
Class of 2001: $32,500
Class of 2000: $32,500

For high billers, the payouts increase:

We will be paying additional bonuses for the associates receiving the base bonuses who have billed 2200 hours, 2350 and 2500 hours. We will pay $7500 for each level attained.

Stub first years will take home five grand and like it:

Associates in the Class of 2008 will receive $5,000 without regard to hours.

And there is even more good news:

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We have determined that, despite the difficult outlook for 2009, we will progress salaries for associates consistent with past practice.

All the layoff news must be unsettling for the people working at Dechert. This bonus announcement will probably help morale.

Read the full memo after the jump.


DECHERT — MEMO — ASSOCIATE BONUSES

We are pleased to announce that we will be paying base bonuses for 2008 to associates in each of our U.S. offices as set forth below. The following base bonuses will be payable to those qualified associates in good standing at the time the bonuses are paid who have 1950 hours (billable, pro bono and nonbillable in accordance with past practices) in 2008.

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Class of 2007: $17,500

Class of 2006: $20,000

Class of 2005: $22,500

Class of 2004: $25,000

Class of 2003: $27,500

Class of 2002: $30,000

Class of 2001: $32,500

Class of 2000: $32,500

We will be paying additional bonuses for the associates receiving the base bonuses who have billed 2200 hours, 2350 and 2500 hours. We will pay $7500 for each level attained.

Eligible associates in these classes who do not reach the 1950 hours but who worked at least 1900 hours will receive $10,000, and those who worked at least 1750 hours will receive $5,000. Associates in the Class of 2008 will receive $5,000 without regard to hours.

As in the past, bonuses for Counsel and other associates will be determined on an individual basis and communicated in the new year.

Finally, as in the past, we will also pay merit bonuses.

As you know this has been a very difficult year for the world economy and law firms have not been spared from the economic crisis. More significantly, 2009 looks to be a more difficult year for both the world economy and for law firms. We have, of course, been affected along with most other firms and will certainly not reach the record revenues and profits that we experienced in 2007. Nonetheless, we do expect that, if revenues come in as expected in the next 9 days, we will end with a very good financial year by any reasonable standard. Because of that expectation and the cloudier outlook for the world economy in 2009, we expect to depart from our normal practice of paying bonuses in the following year. We expect to pay the hours-based bonuses (including the bonuses at 1750 hours and 1900 hours) on December 31, based on time entered and closed by 5:00 P.M. on December 23, 2008. We also expect to pay the bonuses to the associates in the Class of 2008 at that time. And to the extent that we have determined bonuses for other associates, we will endeavor to pay those this year as well. We will, of course, review any time entered after December 23rd, and make supplementary payments in January As in the past, all bonuses will be adjusted for compliance with the firm’s late time policy and will be subject to pro-ration for those who started during the year, part-time status and leaves of absence.

We have determined that, despite the difficult outlook for 2009, we will progress salaries for associates consistent with past practice.

We would like to thank you for your valuable contributions to the Firm in 2008. We appreciate your hard work and dedication, especially during such a trying and stressful year. We look forward to working with you to tackle the opportunities and challenges of 2009.

Barton J. Winokur

Dechert LLP

Earlier: Dechert Ices 72 Staff Positions

Update: Dechert CEO Winokur Indirectly Responds to ATL

Prior ATL coverage of associate bonuses

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