Year-end associate bonuses were recently announced by Boies, Schiller & Flexner, the litigation powerhouse founded by the renowned David Boies. And the Boies bonuses were good — very good.
For starters, unlike other top firms, Boies is paying bonuses to first-year associates from the class of 2009. According to Phil Korologos, a partner in the firm’s New York office:
First-year associates who started after September 1, 2009 will receive a $5,000 year-end bonus. First-year associates who started prior to September 1, 2009, will receive the greater of $5,000 or their performance-based bonus.
Performance-based bonuses at the firm can be quite high, depending on how hard you work and the types of cases you work on (contingency or non-contingency). As a result, bonuses at Boies are individualized, not lockstep; there’s no magic number for each class year. The firm provided Above the Law with the high end of its bonus ranges:
For associates after their first year, the amount of their bonus is based on performance. The performance based bonuses for rising second-year associates range as high as $70,000.
The performance based bonuses for associates beyond their second year range as high as $150,000.
Six-figure bonuses? Now we’re getting into Wachtell territory — or beyond (since we suspect Wachtell bonuses will be down quite a bit this year).
In addition, Boies Schiller pays above-market base salaries — just like Wachtell ($165,000) and Williams & Connolly ($180,000). First-year associates at BSF now start at $174,000.
Check out the complete Boies salary scale, plus learn more about how their bonuses are calculated, after the jump.
Partner Phil Korologos provided us with the following information about associate base salaries for 2010:
The firm has increased its starting salary for first-year associates to $174,000. The firm’s base salaries for classes higher than first-year associates are as follows:
Class of 2008: $192,000
Class of 2007: $210,000
Class of 2006: $228,000
Class of 2005: $246,000
Class of 2004: $264,000
For classes higher than the class of 2003, increases above $264,000 is determined individually.
Compare this to the standard NYC market scale (assuming no salary freeze): 160-170-185-210-230-250.
One thing to keep in mind: the Boies Schiller compensation system is non-lockstep, and therefore carries with it some degree of risk. Firm founder David Boies likes to gamble — he just bought a new condo in Las Vegas, which he visits regularly — and presumably his acolytes should like risk too.
There’s a concise explanation of the BSF comp model over at Chambers Associate:
Associates were proud of BSF’s compensation structure: they love the slightly above-market pay scale… and the bonus system in which the amount you get “ultimately flows from how many hours you’re billing.” Total compensation is roughly 30% of what is billed (adjusted to eliminate variations in associate compensation that would result from alternative fee arrangements or other factors such as premiums or discounts): subtract the base salary from that amount and you have your bonus for the year.
It lacks the guarantee that comes with a lockstep system and it comes with inherent risk, but our interviewees preferred an arrangement where someone billing 3,000 hours is more generously rewarded than someone billing 2,100. “You have the opportunity to make a lot more money than first-year associates at other firms,” said one. “From a morale perspective, if you’re here at 2am and at the weekend you know that’s making you more money. That has a positive effect.”
Here’s a simple example. Take a class of 2007 member earning a base salary of $210,000 (per the table above). Let’s say this associate generates $1 million in revenue for the firm over the course of the year. At year end, this associate would be entitled to $300,000 in total compensation (30 percent of $1 million). Since the associate received $210,000 in base compensation over the course of the year, he’d be entitled to a $90,000 bonus — three times the top bonus on the Cravath scale (paid to class of 2002 associates).
We’re guessing that BSF, which moved up 16 spots in the most recent Vault rankings, will continue its rapid ascent. In a difficult economy, it apparently pays to litigate (and to do a mix of plaintiffs’ and defense work, as Boies does).
Congratulations to Boies Schiller associates on their fabulous compensation. It’s nice to be able to report happy news in sad times.
First McFirst
Hasn’t Boies been doing layoffs? Didn’t they no offer like 50% of their summers?
Beats
Orrick
In
Evaluating
Success
Can you hear me now, John Quinn?
QUINN REMAINS undercompensated
way to go, Booyyyeeeeee!
Is this firm hiring?
Fake firm. Don’t care.
SMU2L
Boies is definitely on my short list.
- Western New England School of Law Secure
‘Tis the season to be ENVIOUS.
That’s nice. A 2008 associate will probably make more than me, a senior associate at DLA Piper.
Boies is a fantastic firm. They will be Vault 10 in the next 10 years.
How does this compensation structure compare to associates who have had offers revoked at, say, Arent Fox?
HA! Law students, choose wisely!
BOIES TO 1!!!!!!!!!!!
Anyone here from Irell yet? I imagine they will be quite high. I wonder if they’ll raise their starting salaries to compete with Boies and W&C.
Me: How has this thread not exploded in comments?
Friend: Associates too busy killing selves.
BOISENFREUDE!
Boies no offered a bunch of summers?
Anyone know anything about their corporate group? I’d like to send my resume to them, but I imagine they’re about to get flooded.
Still too risk-averse to be really jealous.
This story hits me right in the pocket, so I’m interested.
I always thought that Boies was incredibly selective. A quick run through the DC associates, however, dispels this notion. I found several people who didn’t have the kinds of backgrounds I expected (e.g. a non top 10% JD from Catholic, among others).
So now I’m thinking . . . why the HELL didn’t I apply there during OCI?!?!?
Lat -
Due to the fact that Boise does a fair amount of plaintiff’s work, do you know how they compensate huge pay outs. For example, if there is a 9 figure win and/or settlement , the firm will bring in around 40 MM. Does that number factor into an associate’s compensation? If so, that would be great.
21 here. I want to clarify my comment. Are the alternative fee arrangement all adjusted to reflect billable hours or can you share some of the risk (and the possible reward)?
@11, FYI – I work at a firm with less than 20 lawyers and, based on the figure in this post and your comment, I will make more than you – and don’t work weekends.
BIG LAW IS OVERRATED SECURE
21, the short answer is yes, at least historically (maybe still true). Associates had the option of allowing hours they worked on contingent-fee cases NOT to count toward their hours-based bonus, but if they were still around when the judgement/settlement came in (a big if, because it can be a few years), then there was a formula to determine their share of the attorney fees (could hit low six-figures).
This really seems to be a good model (notwithstanding a lack of information about actual salary ranges within each class).
However, it makes sense that total compensation is tied to how much you actually bill. I think one has to be wary with over billing with this model, however, I am assuming that the final numbers are tied to actual realization rate.
I’m jealous indeed…
@21 The short answer is yes. Associates apparently have some control over how much contingency work they do. If they win, that money is part of their bonus calculation. But if they lose, they may have a dramatically smaller bonus than someone who billed the same 3000 hours on hourly-rate cases.
And don’t skip over that 3000 hours bit. So far as I can tell from friends, the 2100 hour comparison in the post is theoretical.
Litigation has always been the way to make the most money. The great credit bubble helped the deal boys get close such that Wachtel partners could make as much as mid-range Texas plaintiff lawyers but that bubble burst and so far Obama can’t find a way to inflate another one. Due Diligence / Copy Review / Word Processor deal monkeys take note.
21 / 22- Yes. Some associates get million-dollar bonuses for contingency case work:
http://abovethelaw.com/2008/01/a_sevenfigure_payday_for_boies.php
My patient, Partner Emeritus, just came out of his coma for a brief moment, in which he said “this is disasterous to the peer firm hybrid tough love model”. He then shat himself and went back into his coma.
That is all.
I think they also allow associates to opt out of a bonus based on revenue and get on based on a cut of contingency fees if they work on those cases. Those pieces of the contingency fee pie can be substantial, especially for associates.
West Coast boutiques who have yet to announce – Irell, Munger, Quinn – TAKE NOTE! You’re not going to let this announcement go unanswered, are ya??
Wonder if Boies will be able to compete for talented associates now that the new Orrick and DLA compensations structures have hit.
@21- yes- and that’s why slaving in biglaw is not too smart…
They no offered several summer associates (almost half) in litigation in the NYC office this summer.
All corporate summer associates received offers. Yes, they have a corporate group. Yes, the compensation structure is the same (sans contingent fee option for cases).
Has Altman Weil signed off on this?
It’s cool, and not annoying or pretentious at all, to say “sans” instead of “without.”
24, 26, and 28:
Thanks for the quick and helpful responses.
I was dinged by Boise back in ‘04/’05, but they seemed like a decent bunch of people.
– 21
PS Its amazing what can be accomplished in the comments when there aren’t 40 schticks posting over each other.
Boies, FTW.
The thing about Boies, is that unlike certain other successful boutiques (eg, Irell, W&C, Wachtell), they probably won’t survive the death of the founder(s) (ditto for Quinn and maybe even for Susman).
36,
Like how your sarcastic attempt at humor is like a successful joke, “sans” the success?
FML.
V10 Underpaid
Wow! I’ll be sure to send over my resume in the near future. Boies is going to get a ton of top notch talent quick paying those kind of salaries.
30 – Yup, see 28.
I asked before: Does anyone know anything about the corporate group?
44, see 34 and STFU
Nice to see the litigation folks killing it as usual. Not surprised that they hired a non-top 10% from Catholic. Remember, most of these attorneys have to litigate matters. You know, actually talking with clients and going to court from time to time. Can’t just grab the top 5% from every top school and shove them in a closet sized office for seven years before you tell them they won’t make partner.
Supposedly 2009 has been Irell’s best billable year so far (not counting contingency fees). Wonder how they plan to answer…
Let’s see — informative, news-worthy, free of obvious bias, grammatically correct. This must be a Lat post.
It really _is_ a great system if you love nothing more than practicing law round the clock.
But folks, saying that BSF “gives” these bonuses is really a misnomer–people kill themselves to earn them. I’m serious: you really have no choice but to literally allow little parts of yourself to wither and die in order to achieve these sums (save those who, like Boies, are nearly as happy litigating as doing anything else).
Do the math and you’ll see what I mean. (And bear in mind that the “salary” from which the 30+% of the billed sum is deducted is reduced by a little over 8% prior to the deduction, making the hill a little steeper.) A fat bonus ($65k+) requires, on average, about a 2400+ hour year. For big money, i.e. *partnership* money, the pricetag is more on the order of 2650+ hours. Maybe that seems normal to folks, but if you’re out there feeling envious, it seems to mean all the bonus sweat can buy comes with a big ol’ grain of salt.
Of course, if you worked that hard last year anyways, well . . . uh . . . yeah, that sucks.
@ 48 — *ghasp* You mean, you actually have to WORK to earn an obscene amount of money? Wow…what a shocker.
Tell that to the tools at CravaTTTh who bill that much and will be making less than BSF’s BASE salary next year, even after their pathetic bonuses.
48,
As opposed to DLA Piper associates who will now see little parts of them die so that they can recoup that 15% of their salary that has been withheld?
Cravath sux balls
Nice report!
Led the separation between firms that cut it and those that cannot begin . . .
Great work if you can get it.
50…you missed the part where those DLA people aren’t billing 2700+ hours for that 15%. if little parts of you are withering and dying b/c you billed 1900 hours, other careers beckon.
It’s interesting how people always toss around hypothetical bonus figures for Boies that are very high — yet virtually no associates at the firm actually get those amounts. The math is much trickier than what is being presented here.
These guys are off to the Ritz-Carlton Jamaica this month for their over-the-top annual firm retreat…ergh, just another thing for everyone else to be jealous about. Guess they’re trying to bring back 80’s excess.
We actually leave tomorrow or Friday depending on what you chose for the Ritz in Jamaica. It’s a great trip and its nice to meet all the people you work with in other offices. Boies pays airfare and hotel for spouses and children too, plus a stipend for food.
I can only speak for myself, but I was very near the top number for bonus- so people do actually get that much.
Any info on Kasowitz’s bonuses and/or salaries?
@55 how do you feel about their *base* salaries now being higher. In an era of slashed salaries and BS bonuses ($35K at top end?), having a base salary of 228 for a fourth year isn’t too bad. Second year’s at 192?
No hypotheticals there.
Note also that the firm pays Boies bears all the cost for single health coverage. As compared to firms like Davis Polk that make associates eat another $300+ every month out of their paycheck.
Not to mention the fact that Boies actually contributes the firm’s own money toward your 401(k). Unlike certain “white shoe” firms in New York. All told, the Boies benefit package is worth another 5-10 grand.
Yeah, but we have more fun at Latham.
I read the title and knew that MysTTTal did not write it
57: hours billed? Are you litigation and, if so, did you roll the contingency dice? Congrats, btw.
Compare BSF to sullcrummy, where Rodge just stepped down as chair, the events have been cut way back purely for appearances’ sake, and everyone is getting slammed for shitty “bonuses” while the partners look forward to another year of near-2007 level profits.
At least CSM has the excuse of actually having a tough couple years.
Why do Irell people think this will impact them at all? Even with their “special bonus” last year, they’ve not played at the BSF level. They’ll be tops in LA (of course, not actually because Susman LA likely pays more). I don’t know how people can want much more than being top of their market. It would be irresponsible for them to grossly overpay.
I’d expect them to do whatever OMM does, and match that, or if OMM cheaps out, to match CSM. They don’t have any overlap in markets with BSF, so there’s no reason to pay any attention to them. Similarly, there’s no overlap with W&C, especially for talent.
Lets say you’re given the choice between BSF and W&C for employment (you want to litigate), which do you choose?
Boies first year associates are making more than MoFo (and other firms that froze) fourth year associates?! What cases have they had this year that has made the firm so profitable? You’re not getting those salaries on hourly billing; you’re getting them from big plaintiff-side wins, right?
Um, 54, I know plenty of BigLaw folks who are billing 2300+. Maybe not at DLA, but other firms. And they’re not seeing bonuses like this. So yeah, people are going to be a bit envious.
66- to answer your question, Irell associates expect to be compensated better than other LA firms because the firm is significantly more selective in their hiring. Almost everybody with an offer at Irell could chose to go to the very top NYC/DC firms. If you look at the average OMM, Skadden, Latham (LA) bios, there’s really no comparison. The expectation isn’t so much that I&M will match Boies– which has its own model and culture, but that year end compensation (which is not lockstep like many of the nyc V10) will reward those who billed 2000+ hours and reflect the fact that the firm is having its most successful year ever.
Any firm that gives Cravath the finger and marches to its own tune deserves to be #1 on the (irrelevant) vault list.
Wow, I didn’t know that ATL readers were such idiots.
Everyone is gloating about BSF and wanting to work there because they pay higher bonuses. This is exactly the reason that the legal market inflated and popped last year. People chasing the (maybe illusory) money. Have you sat to think about the firm’s profit model? The risks it is taking? The people who are in charge? The future of the market? Just because they pay high bonuses now doesn’t mean they are necessarily a solid firm or a good place to work. You can rush toward it like Lemmings because you saw dollar signs but there are a lot of ways of measuring a firm’s future profitability, and current bonuses is one of the crappier ways.
67 — easy. W&C. Boies is a one-man show, has had no-offers (according to the rumor mill), and simply doesn’t have near the prestige or exit options as w&c. If all you’re looking for is a quick-buck firm led by someone with a powerful personality who gets lots of headlines, you might as well as go for the BIG money and work at a local pure plaintiffs’ firm. W&C is also much, much more selective, at least at my top5.
BSF doesn’t contribute to associates’ 401k’s
That’s one reason for the salary raise
And they did have signficant no offers for summers
And remember that at BS, associates bear the risk, just like partners, of non-payment from a client or of a contingency case not paying or working out. So some associates get hammered even when they bill biglaw hours
Any idea how they would go for lateral associates who are not top tier material, but have brought in several big ticket verdicts? I was born to litigate, but do not have the credentials in education to otherwise qualify as a class of 2005 associate. I haven’t seen enough of the pie that I have brought in for my firm . . .
Actually BSF contributes 3% up to the ceiling to 401(k)s, no matching required.
They no offered about half of their summers, after not telling a number of people for over a month whether or not they’d have a job (almost october). They handled it incredibly poorly.
Irell survived the death of its founders, but it won’t survive the death of Morgan Chu.
74: Not correct on 401(k) contributions. The firm has for many years done a “safe harbor” contribution for all employees. I think it’s 3% of salary up to the legal max.
72, 99% of associates won’t make partner at any big law firm. So if their interest is in making big $ for the few years that they can be leveraged, why is it unwise to go for Boies rather than OMM, Latham, O’Melveny, Gibson at all? They’ll make more as a first year at Boies than fifth (or maybe even sixth) years at these other places–and its not like litigation associates at OMM et al are billing a lot less.
73-I don’t think your response is fair in that it assumes lawyers who want to work in DC–given that W&C only operates from the nation’s capital. So clearly, as between W&C and BSF-DC, a law student would probably choose W&C. But BSF is a NYC firm, and therefore the best cases and top talent it attracts all come through New York. So you’d really have to compare BSF-NYC to W&C, in which case, I think you have a very difficult decision. At my top 3 law school, there has been a recent surge in students choosing BSF-NYC over the usual suspects, Cravath, Davis etc.
75: Incorrect. See, e.g., http://www.law.com/jsp/llf/PubArticleLLF.jsp?id=1199986621331&hbxlogin=1 and http://www.chambers-associate.com/hours.aspx?fid=66
This article and the posted comments, not to mention the American Lawyer article linked above, have so much fantasy that I was expecting to see references to “golden snitches” and “muggles.” The Boies compensation system has 3 components, 1) a base salary, 2) a fixed percentage of your overall billing at the rate it was billed, and 3) (assuming #2 exceeds #1) your bonus, which is the difference between the two. In other words, you get to keep a fixed percentage of your gross billings, and to the extent that sum exceeds your bonus, that becomes your bonus. Therefore, an increase in the base salary of a Boies associate has no practical effect whatsoever as it will just come out of the overage that is your bonus. The only people who will see a pay increase are those who fail to bill enough to cover your base, which has become increasingly common in the past few years, and guess what happens to people who are actually COSTING the firm money by not covering their salaries?? Considering that the work flow started to dry up well long before the economic collapse, hours have been down and the bonuses, if any, have been minimal, and certainly not the windfalls speculated above. As far as the associates who got million dollar bonuses from the antitrust settlement, it is simply fiction for reasons too numerous and complex to waste an explanation on but lets just say the number of people who got rich off that deal could fit in a summer associate’s office.