Alas, some claim that Goodwin isn’t letting that extra gravy trickle down to its associates….
A memo from Goodwin Procter, spelling out the 2010 bonus scheme and 2011 base salary levels, appears below. We could offer detailed commentary, but it was summarized concisely by the tipster who sent it to us (capitalization in the original):
GP SCREWS OVER SENIOR ASSOCIATES IN UNSUCCESSFUL BID TO APPEAR TO MATCH MARKET – CREATES NEW SALARY SCALE.
Of course, feel free to offer your own observations, in the comments. And please send us any bonus memos we might have missed, by email. Thanks.
UPDATE: Is there really cause for complaint? As noted in the comments, the new salary scale appears to be an improvement over the current one.
GOODWIN PROCTER — MEMORANDUM — 2010 BONUS PROGRAM AND 2011 COMPENSATION
On behalf of the partners, I would like to thank you for your contributions to the firm over the past year. Together, we accomplished an enormous amount in 2010, notwithstanding the challenges that continue to be presented by the economy. This was due in no small part to your hard work and dedication.
This memo details the 2010 bonus determinations, describes the firm’s plans for 2011 base salaries, and provides an overview of bonus eligibility for 2011.
For calendar year 2010, we continued our practice of awarding bonuses based on a combination of factors – legal excellence; the amount of time spent on billable, pro bono and legal advice to the firm; overall productivity and efficiency; the nature of investment time; and commitment to professional development.
As you know, attorneys who met the 1,950 hour threshold through billable work, pro bono work (up to 150 hours) and legal advice to the firm were eligible to be considered for bonuses, although whether a bonus was actually awarded and at what level was dependent on the factors cited above.
The 2010 bonuses are determined by reference to the bonus scale listed below. Individual bonus awards in each class may be above or below these amounts based on an evaluation by ARC of the factors described above. As has been the case in the past, bonuses will be pro-rated for leaves of absence and part-time schedules. Bonuses will not be pro-rated for associates who joined us on January 11, 2010.
* Includes associates who joined the firm on January 11, 2010.
Bonuses for professional track attorneys will be determined on an individual basis, rather than by reference to the bonus scale listed above. Bonus determinations will be delivered individually to each associate and professional track attorney on January 21. Bonuses will be paid by direct deposit on January 25.
2011 Associate Base Compensation Levels
Effective January 1, 2011, we will recognize and reward our associates for their contributions this year through the base salary increases listed below. In accordance with market standards, senior associates in our New York office will be paid on a different scale than in our other offices.
Compensation for more senior associates and professional track attorneys will be determined on an individual basis. Base salary adjustments will be communicated to each associate and professional track attorney on January 21. Salary adjustments will be reflected in the January 25 monthly paycheck.
Bonus Eligibility for 2011
As always, quantitative and qualitative components will form the basis for bonus eligibility and awards. The 2011 bonus eligibility threshold will continue to be 1,950 hours. ARC will consider the following when determining whether an attorney has met the threshold:
· Billable hours (annualized)
· Pro bono hours (of which up to 150 hours will count toward reaching the threshold)
· Legal services on behalf of the firm (annualized)
The financial performance of the firm will also continue to be a factor in bonus determinations.
Pro Bono and Investment (“91”) Time
The firm remains committed to the Pro Bono Institute Pledge of dedicating 3% to 5% of its annual billable hours to legal matters on behalf of people in poverty or to advance civil rights. Goodwin Procter believes that pro bono service is a shared contribution on the part of the firm and each individual attorney. As in 2010, the firm will credit up to 150 pro bono hours towards the 1,950 bonus eligibility threshold. Pro bono work in excess of 150 hours will continue to be considered by ARC when reviewing the quality of an attorney’s work.
The firm strongly encourages attorneys to expand their professional development through investment or “91” time, which includes involvement in marketing activities, knowledge management, practice area initiatives, training and firm committees. In 2011, ARC will continue to focus on the quality, not the quantity, of these efforts, although each associate should aim for at least 100 hours as a guideline. All attorneys are expected to invest their time in a way that challenges them professionally and contributes both to the firm and to their development.
ARC will assess the quality of attorneys’ investment hours on that basis, but as in 2010, investment hours will not count toward the 1,950 bonus eligibility threshold or the quantitative part of the bonus.
We recognize that you may have questions about the 2010 bonus program and/or the 2011 base salaries and bonus eligibility. We will convene two meetings (one for associates at 3:00 pm ET/12:00 pm PT and one for professional track attorneys at 4:00 pm ET/1:00 pm PT) on Thursday, January 20 to discuss these plans and answer any questions you may have. A calendar request will follow shortly.