Associate Bonus Watch: 5 Firms Foster Frustration

Many Biglaw associates are happy with their bonuses -- but not some associates at these firms.

Since our last story on firms whose bonuses disappointed significant numbers of their associates — to wit, Hogan Lovells, Sheppard Mullin, Bryan Cave, and Irell & Manella — we’ve heard from lawyers at other firms who are unhappy with their bonuses. And these folks want the world to know about their displeasure too.

Here they are. Please note that bonus information can change pretty quickly. If any of the info below is outdated, please email us or text us (646-820-8477), and we’ll update right away.

1. Baker & McKenzie. Here is what one tipster told us:

Baker & McKenzie NY has a July 1 – June 30 year end. The firm pays bonuses in September. In September 2014, the firm paid 2013 Cravath bonuses with the assurance that the amounts would be re-evaluated if market increases in December. Please reach out to management and make Davis Polk bonuses happen!

Said a second source:

I am surprised that you have not been advocating for Baker & McKenzie associates. Mid-year 2014 the firm announced that it is changing its year end from September to June and that bonuses this year would be prorated at 75% of the 2013 Cravath scale. The firm promised to re-evaluate the bonus scale if the market changed in December. The market has clearly changed, and there has been no word from management. Associates in other firms are complaining about receiving Simpson-level bonuses in non-New York offices. How about receiving 75% of a 2013 Cravath-level bonus in New York? It is going to be a helluva drop from the Vault #30 spot.

Actually, we have been advocating for Baker & McKenzie; we reached out to the firm last week, and so far we have heard nothing. Is the firm really going to roll with 2013 Cravath bonuses in a Simpson Thacher/Davis Polk world?

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UPDATE (1/9/2015): In response to the complaints, Baker & McKenzie has upgraded its bonuses — nice!

2. Cadwalader Wickersham & Taft. In early December, CWT matched the original Simpson scale. As far as we know, Cadwalader has not adopted the higher Davis/new Simpson scale. Has anything changed on this front?

Perhaps CWT associates should consider themselves lucky to be receiving the (still generous) original Simpson bonuses. As one staffer source told us, “Cadwalader has not paid staff bonuses since 2009…. last few years, all staff received $250 gift cards. This year, not even that.”

UPDATE (2/13/2015): It took a little while, but CWT has also matched DPW. Excellent!

3. Fenwick & West. The firm made the finals of our annual holiday card contest, but it’s currently in last place. Maybe associates aren’t eager to vote for an employer that they view as issuing disappointing bonuses:

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  • “Maybe Fenwick is a peer firm of Sheppard Mullin? Bonuses were pathetic this year, even though the firm bragged about having a record year. I’m a midlevel associate, I made my hours, and I got a [bonus under $5,000]. No, I didn’t leave out a zero. What a joke. When I saw the check, I wanted to burn it…. Fenwick bonuses are a complete black box. The memo says bonuses were twice as much as last year, but contains no numbers, no breakdown by year, averages, anything. From the reactions of other associates, I don’t think I was the only one screwed.”
  • “Midlevel associate. More than 2100 hours and [less than two-thirds the Davis scale]. Pretty poor showing.”
  • “Fenwick & West gives the class of 2014 $500 instead of pro-rated 1st-year bonuses (market would be several thousand) — so F&W is below market.”

UPDATE (12/31/2014, 10:00 a.m.): More on Fenwick: “The firm brags about the year’s success and passes nothing to associates. Speaking with a handful of associates, average bonus across classes is (literally) 2-10% of market bonuses. Higher percentage for juniors. Word is junior partners are also getting screwed.”

4. Locke Lord. A tipster told us:

Locke Lord fell far short (once again) of matching market bonuses. An attorney billing over 2200 received roughly half of what they would have received if they billed the minimum amount at a firm matching the DPW scale. Very disappointing! The Firm’s leadership is excited that the Firm will [enter] the Am Law 50 after the merger with Edwards Wildman is finalized next month. Hopefully they are prepared to compensate associates like an Am Law 50 firm when they announce a revised compensation structure next month.

5. Winston & Strawn. On December 17, well after the introduction and widespread adoption of the Davis Polk bonus scale, Winston announced bonuses on the original Simpson scale. Said one source, “Winston announced STB bonuses for 2K+ billers last week. Thrilled to get a nice bonus, but would like a market bonus even more. As always, payable in February, which sucks. Appears to apply everywhere geographically.”

You can flip to the next page for the full Winston memo (slightly cut off at the edges), which explicitly states that the firm “will continue to monitor the market.” The market has spoken, and for the most part it’s saying “Davis.” Will Winston do any updating?

If you have bonus news you’d like to share, whether good or bad, please email us or text us (646-820-8477). If any of the firms mentioned above have enhanced their bonuses without our hearing about it, we’d be delighted to update. Thanks.


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