Associate Bonus Watch: Which Biglaw Firm Is Shortchanging Its Associates?

Which firm is acting the Scrooge this year?

How quickly times can change. A matter of weeks ago, Simpson Thacher looked like law firm Santa Claus, announcing early bonuses that beat the paltry scale we’ve learned to expect over the last few years. But after Davis Polk came over the top, the Simpson scale ain’t nothing. Even Simpson gave up on the Simpson scale.

So a firm that hands out Simpson bonuses to many of its lawyers this week, fully aware that the rest of Biglaw moved on to bigger and better things… well, that’s like giving out GoBots when you know Transformers exist.

And yet that’s exactly what Gibson Dunn appears to be doing. We’ve received multiple tips from concerned West Coasters telling us that Gibson Dunn is handing out lots of Simpson bonuses in a Davis Polk world. As one tipster put it:

Received confirmation that mid-level associates in multiple West Coast offices who exceeded the billable minimum and received glowing reviews were paid $10k below the DPW scale — i.e., according the old STB scale. This is an odd move for a firm that prides itself on matching or exceeding the market. Needless to say, associates are pissed. This has been a blockbuster year for the firm and mid-levels are crazy busy.

I don’t know about “prides itself on matching or exceeding the market.” Those of us with long memories recall when Gibson Dunn tried desperately to short its associates out of the spring bonuses that the market dictated. Looks like times haven’t changed all that much.

And as for a blockbuster year, that’s par for the course at Gibson. As another tipster notes, Gibson Dunn is a PPP monster, ranking 10th in that category in the 2014 Am Law 100. Higher than more than a few firms offering the Davis Polk scale. Like, for instance, Davis Polk.

They’re trying to pay the old STB scale in California offices, even for people billing well over 2100 hours. As you can imagine, the midlevel associates are frustrated, shocked, and disappointed that a firm with a HIGHER PPP than Davis Polk (and numerous other firms) is trying to pay below market.

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We must caution readers that while we have multiple tips, we don’t have a memo, and bonuses can vary amongst Gibson associates. Remember, Gibson eschews the genteel practice of announcing lockstep bonuses, and instead hands out individualized bonuses with bumps up or down based on performance. However, the revelation that even attorneys north of 2100 hours are getting the shaft should, if true, put to rest any contrarian claim suggesting that Gibson is giving out Davis Polk money for its top performers.

So if we’ve already crowned out law firm Santas, we may now have our law firm Scrooge.

If you have more intel for us, we’d love to hear it. Be sure to email us or text us (646-820-8477).

UPDATE (4:35 p.m.): So Gibson in New York has matched the Davis scale. Could the decision to use the Simpson scale outside of New York be… intentional?

UPDATE (12/18/2014, 11:55 a.m.): “Mid-level Gibson Dunn associate from a West Coast office here. Just wanted to let you know that it isn’t 100% accurate that Gibson’s non-NYC offices are matching the Simpson bonus scale in lockstep. Admittedly, most non-NYC associates do seem to be getting Simpson bonuses, but some associates are getting DPW bonuses or even higher. I, for one, got a DPW+ bonus. Take it for what’s its worth.”

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Earlier: Bonus Season Comes Early! (And It’s Not Cravath)
Associate Bonus Watch: Davis Polk Beats Simpson!
Associate Bonus Watch: Simpson And Cravath Follow Davis
Associate Bonus Watch: Gibson Dunn Finally Pays Up
The 2014 Am Law 100: ‘The Super Rich Get Richer’


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