Associate Bonus Watch 2010, Biglaw, Bonuses, Money

Associate Bonus Watch: Paul Hastings Consolidates Regular and Spring Bonus News Into One Money Orgy Announcement

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PAUL HASTINGS JANOFSKY & WALKER — MEMORANDUM — 2010 ASSOCIATE BONUSES

We are pleased to announce associate bonuses for 2010.

This year’s associate bonus pool awards a bonus to approximately 70
percent of the associates participating in the program. As always,
performance expectations are steep. Receipt of a top level bonus is an
exception and these are awarded to associates distinguishing
themselves by consistently demonstrating exceptional performance that
surpasses the Firm’s high standards. Approximately 10 percent of all
bonus recipients distinguished themselves at this level and were
awarded the top bonuses. In addition to the three standard levels of
awards, as has occurred in past years, discretionary bonuses were
awarded on a limited basis to certain associates who demonstrated
excellence and made significant contributions but fell just short of
the Firm’s hours threshold.

The Performance Management Committee once again applied the following
standard approach to the allocation of year-end bonuses:
As in past years, bonus allocations were determined based on associate
performance according to the following performance criteria: quality
and efficiency of legal work, including achieving favorable legal
results for clients; level of developmental proficiency related to the
competencies; economic contribution; client service excellence;
business and practice development; Firm committee and community
involvement, including pro bono activities; and training and mentoring
of more junior associates.

Bonuses were determined using the calendar-year measurement period
from January 1, 2010 through December 31, 2010. Productivity is one component of our bonus allocations. For 2010, we again opted to set the bonus-eligibility “hours threshold” at 97.5 percent of an associate’s qualifying hours budget given relative productivity of associates in all offices. For example, full-time associates with a 2000 hour budget who worked at least 1950 qualifying hours (client billable, Firm special projects and pro bono) between January 1, 2010 and December 31, 2010 were bonus-eligible. Associates with an adjusted budget of less than 2000 hours due to part-time work, etc., were measured against an adjusted threshold taking into account their adjusted budget.

Timesheet compliance was closely reviewed and an eligible associate
receiving a bonus earned less in the event of material non-compliance
with timesheet deadlines.

All associates other than the class of 2010 were eligible to participate in the bonus pool. Bonuses were prorated for those associates who worked at the Firm less than full-time for the entire 2010 calendar year. Notwithstanding the foregoing, we did not prorate bonuses for our entering associates in the class of 2009 who started with us in January of 2010.

Sponsored

As with preceding years, the Firm strives to pay bonus levels
competitive with market conditions. Although this year there was a
greater disparity among what our peer firms paid, we have adopted a
bonus scale that matches or exceeds the majority of our competitors.
The following table provides an overview of our 2010 bonuses for
full-time, full-year associates in U.S., Frankfurt and Asia offices.

Class of 2003+: $35,000
Class of 2004: $30,000
Class of 2005: $25,000
Class of 2006: $20,000
Class of 2007: $15,000
Class of 2008: $10,000
Class of 2009: $7,500

U.S. associates receiving year-end bonuses will receive payment,
either through direct deposit or checks delivered to their office on
March 25, 2011, net of taxes where applicable. Associates wishing to
elect 401K deferrals must submit appropriate paperwork by close of
business by March 17, 2011. The Non-partner Attorney Bonus Deferral
Form and instructions for preparing and submitting this paperwork are
located on the Portal [Redacted].

In addition to our regular year-end bonus program, we are also pleased
to announce that the Firm will be awarding a spring bonus to
associates in our U.S. and international offices. The amount of the
spring bonus is the same for each class, notwithstanding the level of
regular bonus (A, AA, AAA) that is awarded. Associates in all global
offices who were awarded a meets expectations bonus or higher and are
in good standing and employed with the Firm on the date the bonus is
paid will receive this additional recognition. Associates in global
offices who were awarded a discretionary level bonus and are in good
standing and employed with the Firm on the date the bonus is paid will
receive an amount equal to 50 percent of the applicable spring bonus
amount. Any prorations applied to the annual bonus will also be
applied to the spring bonus. Spring bonus awards will be communicated
outside of the performance evaluation conference and paid on May 6,
2011. As noted above, associates wishing to elect 401K deferrals must
submit appropriate paperwork by close of business by April 28, 2011.
The following table provides an overview of our 2010 bonuses for
full-time, full-year associates in U.S., Frankfurt and Asia offices.

Meets Expectations

Sponsored

Class of 2006+: $20,000
Class of 2007: $15,000
Class of 2008: $10,000
Class of 2009: $7,500

The partner or of counsel who completed your lead performance
evaluation has received your bonus information. If not already
scheduled, your lead evaluator will contact you soon to schedule your
performance review conference to provide your performance feedback,
address any performance-related questions you may have, and provide
your bonus information.

Any questions you have related to the evaluation and bonus process,
specific hours, proration calculations, bonus-eligibility, and bonus
calculations should be directed to your evaluator or your Local
Department Chair.

Thank you for your contributions to the Firm and we look forward to
your continued dedication to making Paul Hastings one of the world’s
leading law firms. It is your commitment to service and excellence
that advances the Firm’s strategy and enhances our competitive
advantage in the market. We appreciate your superb collaborative
performance and loyalty to the Firm.

Earlier: Prior ATL coverage of associate bonuses

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