Associate Bonus Watch: Skadden Memos Are Out
Individualized memos have been issued to Skadden Arps associates to inform them of their 2008 bonuses and 2009 base salaries. The Skadden base salaries reflect the customary annual pay raises — sorry, Lathamites.
Because Skadden’s announced bonuses this year are so much higher than the Cravath-established market level, folks at other firms have wondered: Are the Skadden bonuses for real?
The short answer: yes. To quote the famous Seinfeld episode, “they’re real — and they’re spectacular.”
We’ve surveyed Skadden associates from a variety of class years, from 2008 through 2001. The scale we’ve pieced together looks like this (i.e., like last year’s year-end or regular bonus schedule, but without the “special” bonus amounts):
Class of 2008 — $35,000 (prorated)
Class of 2007 — $35,000
Class of 2006 — $40,000
Class of 2005 — $45,000
Class of 2004 — $50,000
Class of 2003 — $55,000
Class of 2002 — $60,000
Class of 2001 — $65,000
The bonus schedule is, of course, subject to the 1600-hour minimum. That’s not an onerous burden, and pro bono hours count towards the minimum, in unlimited amounts. If you fall short of the 1600-hour minimum, you may still be eligible for a 50 percent bonus — aka a “half-Skadden” bonus.
After the rest of the New York market settled around the Cravath bonus levels, some wondered: Do the Skadden partners feel like chumps?
Find out, after the jump.
According to one Skadden associate who has spoken to a few partners about the bonuses, the partnership is comfortable with its decision:
They felt it was “right” to give the associates the same bonus as the prior year, less the special bonus. I get no feeling that they regret giving this bonus whatsoever, even with the market setting itself lower. I think the partners here recognize that the bonus should be based on this year’s work, not in anticipation of what will happen next year.
We did hear — not firsthand, because none of our sources fell into this unfortunate group — that a handful of associates with poor performance reviews did not receive these amounts (and did not advance with their class years in base salary). But this happens every year at SASMF, to a small number of underperforming associates.
In other words, as one tipster told us, there was “no mass screwing” of associates on bonuses. To the vast majority of its associates, Skadden is delivering bonuses at the promised levels. The bonus memo from Bob Sheehan is the real deal, not a bait-and-switch tactic.
But since they are lawyers, generally a critical and unhappy lot, Skaddenites can still find things to complain about. From a Skadden lawyer:
After viewing Skadden’s new external website today, I think its pretty safe to say the full-bonus money cut into our marketing and technology expenses. In my years at the firm, this is one of more ridiculous blunders, and will hopefully be corrected (i.e. removed) soon.Let the Skadden haters rejoice: our client-facing and recruiting-based website appears to be designed by a summer intern. For a firm that spends an excessive amount of money cultivating its brand, I have no idea how the marketing department approved such an atrocity. I never thought I’d long for the blinding red background of yesterday.
A couple basic marketing and website principles that are clearly violated:
1) You should never scroll up/down or left/right on a homepage (clients aren’t used to hunting around briefs all day for basic info).
2) The reflective Skadden logo at the bottom was clearly borrowed from the newest version of iTunes, and looks awkward at best.
3) Pics on bottom: yeah Skadden has a “face” and isn’t its negative Death Star stereotype, but we shouldn’t be subjected to partner “glamour shots” right away.
Overall, the website unfortunately propagates the often accurate stereotype that many lawyers lack fundamental knowledge about business. But as many of our clients are businesspeople with such knowledge, I’d rather keep the secret safe. Give us our old website back.
Skadden Luddite
Skadden Luddite, quit yer whining. Given the bonus amounts being doled out to you and your colleagues, you’ll take whatever website they give you. And like it.
(101) Comments
Comments
"handful of associates who recieved poor performance reviews did not recieive these amounts"
recieved? TWICE in the same sentence?
last?
ninth
fourth bee-atches!!! SUCK IT!!!
Only a 1600 minimum? Holy crap!
1 = tool
i before e, except after c
Wachtel>Skadden> Market> TTT>Latham
Kevin - You better not be reading this. No letter for you!
see..LAT makes mistakes too in his posts "----Lathamites)" Where's the open paren?
Now..back to hating on MysTTTal
Yeah. Skadden's billable requirement is 1,600 just like Elie's daily caloric intake is 1,600.
Have to agree with the below-the-fold commentary about the new homepage. Terrible. Just terrible.
LaTTT made spelling mistakes to make MysTTTal look better.
Wachtell>Skadden>OMM>Market>Secondary market>mid-law in NYC>ID/PI law>unemployed>Elie>Latham
What that ***** want God?
Word up, look out for the cops
(Cash Rules)
Word up, two for fives over here baby
Word up, two for fives them **** got garbage down the way, word up
KnowhatI'msayin?
(Cash Rules Everything Around Me C.R.E.A.M. get-)
Yeah, check this ol' fly s*** out, Word up
(Cash Rules Everything Around Me) Take you on a natural joint
(C.R.E.A.M. get the money) Here we here we go
(dolla dolla bill y'all) Check this s***, yo!
Dolla dolla bill ya'll
What a tool. The website is huge improvement. Set your resolution higher dumbnuts. What is on 640x400?
Kevin--I kiss you!
www.ikissyou.org
11 -- You made a funny.
JT is back! What the hell is he talking about, though?
skadden bonuses were paid a week ago
SkaddenDC is spinning out of control and they're receiving bonuses? Something tells me that management may not be all there. ::taps head::
Hey there attractive, young crowd,
Back when I had a firm, we paid bonuses that would have caused Elie to call us sextuple-Skadden. Sextuple not because we paid 6-times the money, but because we got our attractive, young associates laid by 6-times the maxim models. Ask my buddy Michael Strahan, he was there.
Those were the days.
TWENTYTHIRDASAURUS REX!
1 YOU are a douche!
Lat's posts are so much better than that hack MysTTTal's.
Come back, Lat!
skaTTTen is truly a TTTop firm...it is astounding the money shat down the terlit by the idiots who jumped teh gun...
Personalized hard copy bonus memos are being handed out at S&C. Half-Skadden.
S&C Associate
skadden partners are putting on a brave face for assocs, but they are livid about paying these bonuses
Lol, I love the Douche Patrol guy!
Marc E Marc (you can do a lot with this one!) and Douche Patrol are by far my favorite charachters. I do enjoy the Glasscock too though.
Come 19, surely you are familiar with the work of U-GOD, the RZA, the GZA, Method Man, Ol' Dirty (RIP) and the rest of the Shaolin? Well, perhaps JT should elaborate.
In 1993, a group known as the Wu-Tang Clan became known to underground hip-hop fans following the release (more like hand-to-hand distribution, really) of the track "Protect Ya Neck." Subsequently signed to the RCA label, the Clan went on to release the venerable "Enter the 36 Chambers" in late 1993, which propelled the group to stardom within the Hip Hop community. However, the majority of their tracks - considered too "urban" for radio due to their tone, content, and general melancholy - were rarely played on Top 40 stations or MTV, at least not during prime time. This may be why you are not familiar with the lyrics of "C.R.E.A.M.," one of the singles from "Enter the 36 Chambers."
JT would depict the subsequent solo careers of many of the Wu-Tang's members, as well as their second album, but such an endeavor would require far too much time.
It cost Skadden and extra $20 million. than had they done 'half-Skadden." CWT could have bought a lot of porridge for kids in Uganda with that amount of change.
Put your money in your mattress. Buy gold. Trust nothing. Love the one you're with.
By taking the money, SkaddenDC is stoking the fires of inflation that will surely come to burn us all in 2009.
Be prepared to have a wheelbarrow to pay for a loaf of bread.
Weimar, here we come!
Thanks, Skadden.
The Douche Patrol gets his man again.
11 and others, you people are not human.
Latham 3L here, FUUUUCK i made a big mistake. i drank the "culture" kool-aid
now i'm just hoping my offer doesn't get rescinded
27 -- that's weird. i got a special bonus, but im in LIT. oh well. it all evens out.
36,
Not human? What do you think we are? Zombies?
On that subject, might I recommend Left 4 Dead? After being laid off, you should have plenty of time to play with your laid off friends.
Douche Patrol is the only reason I feel safe at night. Thank god he is on the job!
S&C's are out. Bad news.
Any other firms out there freezing/not freezing salaries? My guess is that a lot of firms won't make any official announcements, so it will spread by word of mouth....
S&C are freezing salaries too...
Kevin, did you get your memo?
Douche Patrol to save the day!
11, that is actually kind of a small number of calories in one day for a man.
Neel, u bum!
QUINN WHERE THE F**K ARE YOU WITH MY BONUS NEWS?
Question regarding 37's comment: In general, how common is it to have an offer rescinded after it's been made?
I just glad there are some associates in this market that are going to be able to feed their families.
Funny, I dont see any more Skadden-hater posts about "Prestige" like when Skadden first announced. Guess my prediction that $ trumps Prestige has finally sunk in.
44- Yes I did. thank you for caring.
50, most every associate can feed their family. ID associates making $36K can feed themselves... you just have to budget accordingly.
46 -- he meant per sandwich
WE SHOULD ALL VOTE IN THE VAULT SURVEY TO PUT SKADDEN ON NUMBER 1 AND KICK CRAVATH OFF THE VAULT 100 LIST ALL TOGETHER!!!
You need to diversify yo bonds, bitches.
-Wu Tang Financial
Any other firms out there freezing/not freezing salaries? My guess is that a lot of firms won't make any official announcements, so it will spread by word of mouth....
Douche Patrol you need to visit my girlfriend, and the chick I cheat on with her and my neighbor's wife (don't ask).
Any other firms out there freezing/not freezing salaries? My guess is that a lot of firms won't make any official announcements, so it will spread by word of mouth....
S&C announced...
http://amlawdaily.typepad.com/amlawdaily/2008/12/breaking-sullivan-cromwell-bonuses-cut-but-no-freeze-on-pay.html
They are market with no salary freeze
Only Latham is freezing.
50 - I hope you're being sarcastic. At my small firm I was taking in a salary of $40K, then got a bonus of $500 and a bump in salary to $41,500 as a second year. And while I was getting crapped-on with that, for sure, it's still more than school teachers make.
More accurate S&C info, please...
62--I hate to say it, but my girlfriend's starting salary as an NYC public school teacher was $49,700 (and that was a couple of years ago.) In addition, that salary comes with a real pension and free health insurance.
S&C memo also states that they're doing special bonuses in the spring and expanding to all class years rather than just 5th year+.
64 - For every second or third year Biglaw associate whining because their bonus is only $20K, there's a dozen second or third year associatttes making $45K / year after "working their way up" from $35K after being admitted. I don't know why people are complaining so much about bonuses this year.
64 - For every second or third year Biglaw associate whining because their bonus is only $20K, there's a dozen second or third year associatttes making $45K / year after "working their way up" from $35K after being admitted. I don't know why people are complaining so much about bonuses this year.
The New York City Department of Education offers extremely competitive salaries to newly hired teachers. Since 2002, starting salaries for NYC public school teachers have increased 43%.
Salaries are based on prior teaching experience as well as undergraduate and graduate degrees. As of May 2008, starting teacher salaries range from $45,530 (bachelor’s degree, no prior teaching experience) to $74,796 (master’s degree, 8 years teaching experience). Teachers who already have a master’s degree but no teaching experience will start at $51,425.
With annual increases plus increases for additional coursework, teachers' salaries will rise to the current maximum of $100,049 per year over time.
http://schools.nyc.gov/TeachNYC/SalaryBenefits/Salary/Salary.htm
64 and 66 - don't be hatin' because you didn't do well in law school. Losers!!
No Kevin did not get his memo. Kevin does not work at Skadden or S&C. Kevin must wait another day and troll ATL for a sign that the memo is coming.
Kevin did not get his memo. Kevin does not work at Skadden or S&C. Kevin will have to troll ATL for another day waiting for a sign that the memo is coming. Kevin also says he is boycotting ATL; but I do not believe him.
4TS pwns.
69 - Don't act like Biglaw associates are somehow entitled to fabulous wealth because you studied hard for a law school exam years ago. Any more than Goldman "analysts" are entitled to fabulous wealth for... whatever the hell it is they did to get their jobs. Wealth is a factor of value; if you're not making your firm enough money for them to afford your wildly optimistic bonus, don't complain when you don't get it.
There is a very basic tax reason that partnerships do not keep big retained earnings. Do a little homework.
Kevin--need to talk to you about your TPS reports...
I don't know why everyone here thinks O'MM is so great since they just laid off associates in NYC for the second time this year. Yup, second round of layoffs.
Skadden is the bee's knees.
Will someone tell me what TTT means? I guess I am either out of the loop or just not up to par on my legal tabloid vernacular.
I love you, Douche Patrol.
Love,
Your Mom
The Skad may have gone market for the associates, but they screwed their staff attorneys good and hard.
I miss the Communist/Blood red on Skadden's old website.
78- It's what people with third-tier-toilet imaginations think is a clever term for firms and law schools that wouldn't take them.
I've said this every year at New Attorney Orientation, and I'll say it again - Skadden is the best run law firm in the world. 2008 and 2009 are no exception. To the associates, enjoy your above market bonus. To all you Skadden haters, go suck an egg.
Oh, and I hire the top students from Tier 2 schools because they are better than you.
congrats to the Skadden associates, you guys deserve it!
- stb Sr.
1600 hours is ridiculously low.
Congrats Skadden Associates!
Can someone intelligent comment as to whether 1600 hours is actually an easy to meet threshold this year? I've heard of non-first years at my firm billing less than 10 hours a week for a while. I myself (first year) went two weeks without billing a single minute.
I believe at 1600 hours, the bonus is a going away present. at 1800 hours, It's a "if you give it back you can keep your job" present, and a 2100 hours you get to keep it.
Skadden requires 1600 for full bonus, 1200 for half bonus. Both are calculated on a pro-rated basis by looking at your hours from Jan 1 through Oct 31.
If you're on track for 1600 by Oct 31, but finish below 1600 for the full year, you still get your full bonus.
If you're not on track for 1600 by Oct 31, you get a half-Skadden. But you still get the other half if you bill 1600 by Dec 31.
This policy has been in place for a while. But remember that not so long ago, there weren't any year-end bonuses.
By the way, do you think that you could give me that $20,000 in cash? My concern is, and I have to, uh, check with my accountant, that this might bump me into a higher, uh, tax...
Brandt, give him the envelope.
Oh, you've already got the check made out, that's great.
When asked how Skadden was going to pay its full bonuses this year, the firm responded: "straight cash, homey."
10 - I think that has been fixed. I don't see a closed paren there.
-- Former law review editor
87: Because Skadden counts pro bono work as billable work in UNLIMITED quantities. If you only have 10hrs/week in real work, you can pick up a 1000 hours of pro bono. There is NO excuse at Skadden for not making your hours . . . and if you don't, I guarantee that you're going to get pushed out at your review this year or next.
Confirmed that Skadden DC is conducting stealth layoffs. They went from 30 Staff Attorneys to 23 a week ago.
Are there stealth layoffs at Kirkland?
to #80: word. this has been completely ignored, but the fact is that this year, staff attorneys had to bill a 2000-hour minimum (up from 1800 last year) to get "big" (haha) bonus. now, staff attorneys may have accepted the fact that they are paid half of a first year associate's salary, right? but what is the rationale for the minimum-hour disparity (2000 for staff attorneys vs. 1600 for associates? i mean, really... the money they may have saved on screwing the staff attorneys wouldn't even cover the costs of this summer's tote bag giveaway
80 and 96 are right - the firm lost some serious goodwill when it decided to shaft the staff attorneys. Before anyone mocks, these are attorneys generally on a second career, most of whom are more mature and harder working than the overpaid first years that Bob Bennett defends above. The firm calls ours a 'lifestyle' position, yet regularly has us work 60+ hours a week, including nights, weekends, holidays. The decision to cut staff attorney bonuses should be seriously reconsidered.
last!!!!!
*farts*
Skadden - Unbelievable that associates can get away with 1600 -1800 hours while staff attorneys toil away nights & weekends for that 2000, sustain abuse from dumbass d-bag first years, and get penalized for making a mere 1950 because there was no work over the summer. They're not asking for equality or security, just some sense of fairness that you try to project with that above market associate bonus. Way to go skadden partners! You have trashed the respect and goodwill of your most hardworking staff attorneys. As for dedication and loyalty, you get what you give in return.
Skadden- Just IRONIC that skadden prides itself on devoting so much resources, including staff attorney resources, for pro bono cases- helping those in need to seek justice - yet allows continued injustice to its powerless SAs!
Lawyers are not worth a bonuses that high. It's shameful.