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Associate Bonus Watch: Quinn Emanuel Rewards Busy Bees

law firm associate bonus watch 2008 biglaw bonuses.jpgAssociate bonuses have been announced by Quinn Emanuel. The scale, which applies to all offices, is driven by a combination of seniority and hours. The full memo and bonus schedule appear after the jump (along with an interesting email that John Quinn sent back in October about the state of the firm).

Reactions to the Quinn bonuses are varied. From a happy QE associate:

I’m in the top tranche! Good for Quinn for compensating the hardworking fairly!

I like it. It’s basically a totally fair structure in keeping with the general Quinn Emanuel expectations. As with prior years, 2100 or so gets you a New York bonus, regardless of office; I’m happy as a California associate to take New York-scale compensation, in good years and (unfortunately) in bad.

It also is the first time the firm has multiple hours kickups; in prior years, it was only for 2500. This makes it much more fair for extremely high billers (such as myself), while also penalizing people who don’t pull their weight — with the amount of work the firm had this past year, coming in under 2100 means you actively had to avoid work (or did a bad job and had partners avoiding you).

All in all, I like it: it really scales compensation to how much you work; I can keep dreaming of an Boies Schiller “percentage of billables” system, but this is pretty close.

More reactions, plus the full memo, after the jump.

From a less thrilled Quinn tipster:

[The bonuses] are disappointing. First, this is below market as 2100 hours were required to receive the half-Skadden bonus. The whole point of the half-Skadden structure was, I thought, to account for the fact that many associates were really slow. The numbers are fine for the really high billers I suppose, but word on the street is that Quinn’s PPP numbers will actually exceed last year’s remarkable $3M figure. I guess partners at Quinn can have their cake and eat it too. None of this is surprising though, as Quinn will pay the least amount that they can get away with. And they will get away with this.

And from a third Quinn source, who falls somewhere in between:

[The bonuses are] sort of appropriate. A number of New York associates had the option of hitting the 2400 hour mark. Many hit 2100 over the summer because of the huge trials, and I know of at least one person that got supra-Skadden.

But class of 2008 gets [screwed] — $2,500 is $10,000 prorated.

Okay, readers, that’s enough opinion; you can judge for yourselves. Here’s the Quinn Emanuel memo and full bonus schedule.

QUINN EMANUEL — MEMORANDUM — 2008 ASSOCIATE BONUS STRUCTURE

From: Richard Schirtzer
Sent: Friday, December 19, 2008 12:17 PM
To: Attorneys
Subject: RE: 2008 Associate Bonus Structure

The firm will be paying bonuses pursuant to the following schedule on December 23rd.

We greatly appreciate all your hard work this past year and wish you all very happy holidays.

Should you have any questions about bonus calculations, please feel free to call or email me.

Quinn Emanuel associate bonus schedule 2008.jpg

* Up to 100 hours of credit on pro bono/AAIT matters
Full billable hour credit given for non-billable time spent on collection and E&O matters

** Attorneys who were near a bonus level cut-off were rounded up to the next level

*** Lateral attorneys who were here only part of the year were given pro-rated bonuses based on the level they would have reached on an annualized basis. However, if actual hours met one of the above milestones, you will receive the higher of the full bonus for that milestone or the pro-rated bonus for the milestone you would reach on an annualized basis

Richard A. Schirtzer, Esq.
______________________________________

From: John Quinn
Sent: Thursday, October 09, 2008 2:10 PM
To: Attorneys
Subject: things are slow right now

more so in some offices than others. lawyers are funny. in april, may and june we averaged over 200 hours per attorney—an unbelieveable, perhaps unparalleled work pace for a firm as large as ours. many wondered how we could possibly keep that up. now we’re averaging 150 plus per month and people are worried. so one point to be made here is that “slowness” is relative.

the pace is down significantly because of the coincidence that a number of major matters, on which scores of attys were working full time, went away—trial ended, the case settled, etc—at the same time. it is an amazing fact that of the 10 largest billing matters in 2008 thru the end of sept, 9 have finished or nearly so. these are the kinds of cases that you do not replace immediately.

this really shouldn’t be a cause for concern tho. our basic practice strategy—focusing on high end ip and financial litigation, trial work, being able to be adverse to financial institutions, etc—is clearly sound. in fact, in this business environment, we’re better situated than any firm i know. there will be lots of claims to be brought arising out of the financial mess and they will require firms that can be adverse to banks. we are at the top of that list. and we do not have a corporate dept with deal lawyers with nothing to do. many law firms will suffer. i don’t think we will.

it is to be expected that it would take some time to spool up again after so many large matters went away. there is no cause for nail biting tho.

there are lots of business development things and nonbillable things to be done. we expect that everyone will pitch in on such projects when asked to do so.

John B. Quinn
Quinn Emanuel Urquhart Oliver & Hedges, LLP

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