Associate Bonus Watch: Firm Angers Associates With Low Bonuses (Outside New York)

When the word associates use most often to describe how they felt after receiving bonuses from your firm is "livid," you know you've got some changes to make.

It’s almost February, and while it’s pretty late in the game, Biglaw bonus season continues to roll on. You’d figure that by now, law firm management committees would have figured out that the generous Davis Polk scale is controlling the market — and not just in New York.

Take, for example, the case of Gibson Dunn. When associates outside of New York received below-market bonuses, they were left feeling like second-class citizens. The firm eventually relented and matched the DPW scale in their offices across the country.

The firm we’re writing about today, however, decided not only to pay lower bonuses to associates outside of New York, but announced these lesser bonuses in the same memo alongside a Davis Polk match for its New York associates. Which law firm are we talking about?

It’s none other than Arnold & Porter, whose non-New York bonuses have been described as “horrendous.” But just how horrendous are they? Here are some instant reactions from associates that we’ve received after A&P announced bonuses yesterday:

• Arnold & Porter just announced horrendous bonuses for non-NY offices — less than half market for over 2k hours. West Coast associates are livid and talking about leaving. Plus the announcement was one month late.

• Arnold & Porter non-market bonuses announced. 2000 hour bonuses same as last year.

• Associates in the non-NY offices are livid and (I realize this may be something that is said when most bonuses are announced) but a large number of associates are discussing leaving the firm. Last year, the firm made no distinction between 2000 and 2200 hours. This year, the difference is more than double! It doesn’t make any sense (from a PR standpoint or an incentive for your supposedly valued associates).

So not only did Arnold & Porter have the gall to do its non-NYC associates dirty, but the firm apparently didn’t even tell them that this year, there would be a distinction made between 2000 and 2200 hours that would result in the receipt of last year’s bonus scale for the unlucky associates who weren’t high billers. Only those who worked their butts off were rewarded with bonuses on the DPW scale. That’s ice cold.

Here are the relevant bonus scales for Arnold & Porter associates outside New York:

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Now you can see what these associates are losing their minds about. Some midlevel associates are receiving less than half of market bonus compensation for billing between 2000 and 2200 hours, and they’re prepared to exit en masse.

For what it’s worth, this isn’t the first time associates at A&P have been pissed off about their bonuses. In the past, bonus payouts from this firm have been similarly miserly, and associates have seemingly been unhappy for years. When the word associates use most often to describe how they felt after receiving bonuses from your firm is “livid,” you know you’ve got some changes to make.

If you have more intel for us, we’d love to hear it. Be sure to email us or text us (646-820-8477). Our condolences to Arnold & Porter’s unhappy non-NYC associates.

(Flip to the next page to see Arnold & Porter’s anger-inducing bonus memo in full.)

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