Associate Bonus Watch 2008, Dewey & LeBoeuf

Associate Bonus Watch: Dewey & LeBoeuf Pulls a Half-Skadden Too

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At this point, why would you pay market rate? Half-Skadden opened the door, and now other firms are crashing through like there’s a sale at Wal-Mart.

The latest predictable news comes from Dewey & LeBoeuf:

Class of 2008 — $17,500 (pro-rated)

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

Dewey also announced bonuses for their London office. See the full U.K. scale, plus read the full U.S. bonus memo, after the jump.


Here’s the Dewey – London bonus scale:

Tier 1:

2008 £10,350 (pro rata)

2007 £10,350

2006 £12,150

2005 £13,500

2004 £14,850

2003 £16,650

2002 £18,000

2001 £19,575

Tier 2:

2008 £11,500 (pro rata)

2007 £11,500

2006 £13,500

2005 £15,000

2004 £16,500

2003 £18,500

2002 £20,000

2001 £21,750

While you pray that S&C comes in and sets things right, here’s some food for thought. There are a couple of important nuggets that make Dewey’s bonus not quite as onerous as those given by Half-Skadden and similar firms. First of all, Dewey is at least acknowledging that work for junior associates is hard to come by:

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To be eligible for a bonus, full-time associates must have billed at least 2,000 hours in 2008. This total may include a combination of fee-earning, pro bono and partner-approved and other accountable hours. We realize that it is often difficult for new associates to reach this target. Therefore, all associates in their first full year with the firm (Class of 2007) will be eligible for a bonus irrespective of their actual hours billed.

That’s nice. All dogs go to heaven.

Meanwhile, there is still the possibility that high billers will get more money:

Associates in the Class of 2006 and more senior will be eligible for an additional discretionary bonus if they have billed 2,200 hours (including a minimum of 2,000 client billable hours) in 2008. This additional bonus will take into account both seniority and total hours billed.

Dewey doesn’t say how much discretionary money is available, but this might be a way to avoid punishing people who have work for the fact that others are slow.

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It seems as if Dewey is the first firm to make Half-Skadden bonuses slightly less unfair to hardworking associates. Hopefully, other top firms that are unwilling or unable to match Skadden will follow Dewey’s lead instead of Half-Skadden’s example.

DEWEY & LEBOEUF — MEMORANDUM — ASSOCIATE BONUSES

Dewey & LeBoeuf’s counsel and associates have made significant contributions to our strong performance in 2008, our first full year as a combined firm, and a year marked by great economic uncertainties across the globe and unprecedented turmoil in worldwide financial markets.

It is important to look back and appreciate the outstanding work of our counsel and associates in 2008. In recognition of their individual efforts and the overall performance of our firm, we have determined that eligible associates in our U.S. offices will receive the following bonus amounts for their contributions in 2008:

Class of 2008 — $17,500 (pro-rated)

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

To be eligible for a bonus, full-time associates must have billed at least 2,000 hours in 2008. This total may include a combination of fee-earning, pro bono and partner-approved and other accountable hours. We realize that it is often difficult for new associates to reach this target. Therefore, all associates in their first full year with the firm (Class of 2007) will be eligible for a bonus irrespective of their actual hours billed.

To receive a bonus, attorneys must also be considered by the firm to be in good standing. Bonuses for counsel and associates in the Class of 2000 and more senior will be determined on an individual basis. Associates in the Class of 2006 and more senior will be eligible for an additional discretionary bonus if they have billed 2,200 hours (including a minimum of 2,000 client billable hours) in 2008. This additional bonus will take into account both seniority and total hours billed.

As we look ahead to the difficult business conditions in 2009, we will once again rely heavily on the hard work and steadfast commitment of our associates to provide world-class service for our clients and instill our firm’s culture and values throughout our organization.

On behalf of the partners, I would like to thank all of our counsel and associates for helping to drive the continued success of our business in today’s tough economic environment. By working together and maintaining our intense focus on providing exceptional service to our clients, I am confident that our firm will overcome whatever challenges lie ahead in 2009 and beyond.

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