Associate Bonus Watch 2009, Deferral Stipend, Start Dates

New Management at Mayer Brown Delays Start Dates, Changes Bonus Threshold

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We’ve already reported that Mayer Brown pushed back its start date for incoming first year associates to January 19, 2010.

But today, we’ve learned that Mayer Brown is also giving people the option of deferring for an entire year. A Mayer Brown spokesperson confirmed that the voluntary deferral will include a stipend of $5,000 per month:

[A]nyone in that class who voluntarily chooses to extend their deferral for any reason may do so, up to October 2010. Those who choose to take advantage of this option will receive a $5,000 monthly stipend.

The deferral option is being communicated to incoming first year associates over the phone, just in time for final exams.

Pushing back start dates is just one of many things going on a Mayer Brown right now. We have some new management details after the jump.


Last week, Mayer Brown elected a new chairman and somewhat radically changed its management structure. The firm’s press release explains:

Mayer Brown, a leading global law firm, announced today that its equity partners have ratified the nomination of Herbert W. (Bert) Krueger as Chairman. He will succeed James D. Holzhauer, who announced his resignation in March, on June 1, 2009. The partnership also approved a new governance structure for the firm and the nominations of 11 additional partners to key leadership roles in the new structure.

Under the new governance structure, two groups will replace the current 16-member Policy & Planning (P&P) Committee: a Management Committee consisting of six members plus the chairman and a Partnership Board with 12 members plus the chairman.

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James Holzhauer, Mayer Brown’s current chairman, has had an uneven tenure.

Since Holzhauer announced his pending departure, Mayer Brown has laid off 55 lawyers and staff in London, and 135 lawyers and staff in the U.S.

On Friday, the new Policy & Planning Committee announced that the bonus structure would be changing for 2009. A firm wide email explained:

In its meeting last month, the Firm’s Policy & Planning Committee reaffirmed the associate bonus structure used in this office and made two changes for 2009 designed to keep us competitive and strong.

In 2009, bonuses will again be based on achieving certain hours thresholds, but will begin at 2100 hours, rather than at the 2000 hour level used in recent years. As in past years, the actual amounts paid at each threshold will not be determined until early next year.

Raising the bonus threshold in a slow year seems like an excellent way of decreasing the amount of money the firm has to pay out in bonuses. Mayer Brown paid the Cravath rate this past bonus cycle.

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We’ll see if there is any more bad news Mayer Brown gets out of the way before Mr. Krueger takes over in June.

Earlier: Nationwide Start Date Round-up… Yup, Another One

Mayer Brown Chairman to Leave at the End of the Year

Associate Bonus Watch: Mayer Brown

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