Associate Bonus Watch 2009, Bonuses, Texas

Associate Bonus Watch: Baker Botts - Houston(And other Baker Botts / Houston law firm news.)

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March is almost over (and tomorrow is the official start of spring), but law firm bonus news continues to trickle in. Yesterday, for example, we covered Mayer Brown. Today we bring you Baker Botts (Houston).

As far as associates were concerned, it was about time:

Baker Botts in Houston finally announced bonuses for 2009. People were getting very upset about how long it was taking, and the partners were very aware of that fact.
For the most part, bonuses were slightly higher than most people were expecting.

Perhaps Baker Botts can afford to be generous; work is definitely coming in the door these days. The firm is representing Dominion Resources, which is being acquired for $3.48 billion by Consol Energy, and Schlumberger LTD., which is merging with Smith International. And Baker Botts has been raking in big bucks from bankruptcy work too.

So, how big were the Baker Botts bonuses?


There was no memo — bonuses were communicated via individual letter — so we aren’t 100 percent certain of these numbers. But sources report these approximate figures:
Class of 2009: $0
Class of 2008: $5,000-$7,500
Class of 2007: around $12,500
Class of 2006: around $17,500
High billers (2200 hours and above) may have received larger amounts than the foregoing. For the class of 2005 and up, bonuses were more varied, ranging anywhere from $20,000 to $70,000.
The Baker Botts associates we heard from seem mostly happy with the bonuses. But there is also some less happy news to report out of the firm.
Revenue and net income at Baker Botts were down by about 6 percent last year. And there have been some notable defections, according to one Baker tipster:

Baker Botts Houston has lost 5 partners since the first of the year — 2 to Latham & Watkins, and 3 to McDermott Will & Emery. All were from key focus groups of the firm that BB prides itself on — Global Projects and IP. Many associates have gone with them. The exact number is being kept very quiet firm-wide.
There is a minimum of 15 people who have left in a two-month period of time. The Houston office never loses people, especially in these sorts of volumes….
I applied for an in-house job recently and was told that 60% of the resumes were from Baker Botts associates. Something is cooking. Is it just Houston, or are other offices have the same sorts of issues?

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If you’re from a Baker Botts office other than Houston, feel free to opine on this question in the comments.
P.S. A source at Latham & Watkins, which picked up several attorneys from Baker Botts in Houston, feels that our coverage of Latham’s Houston office launch should have been bigger and more positive:

It was unprecedented, and probably the biggest thing in the legal energy world for quite some time. Latham was able to pull market leading capital markets partners from V&E, Baker Botts and Akin Gump, something that Skadden, Weil and many many other firms have been trying to do for years. They also pulled the Head of the Oil & Gas practice from the supposedly #1 Oil & Gas firm in the world, Baker Botts.
The really unprecedented aspect was that Latham started the new office with partners from the three TOP Texas firms (VE, BB & Akin) AT THE SAME TIME! Absolutely unprecedented in Houston (maybe elsewhere too?), in one of the most provincial legal markets in the US. There are more closed door meetings (of nervous leaders) happening at VE and BB than ever before.
The Houston legal market is on its ear, and waiting (some in fear) for Phase II. To put it into perspective….. Skadden has 5 partners in Houston after 17 years in the market, Latham opened…. opened…. with 8 partners.

The Houston legal market sounds very exciting! If you’d like to vote for Houston as the best city in which to practice law, click here and scroll down. (Right now Houston is getting its clock cleaned by Atlanta.)
Wachtell, Akin, Baker Botts Score on $3.48 Billion Energy Deal [Am Law Daily]
Big Bankruptcies’ Big Fees Raising Questions [Am Law Daily]
Wachtell, Baker Botts on $11 Billion Oil Deal [Am Law Daily]
Locke Lord, Baker Botts gross revenue down in 2009 [Tex Parte Blog]

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