Biglaw, Bonuses, Money

Associate Bonus Watch: Orrick Opens Up The Coffers

Good news for associates at Orrick -- and firms that consider themselves Orrick's peers.

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We’ve flipped the calendar into 2015, but we have not turned the final page of bonus news. We’re working on an update for tomorrow about recent developments at Hogan Lovells, Baker & McKenzie, and perhaps some other firms. If you have news to share, please email us or text us (646-840-8477).

Now, on to today’s announcement. Ever since those depressing Sheppard Mullin bonuses, people have been wondering what California-based or West-Coast-focused firms would do in terms of bonuses. Would they use the generous Davis Polk scale as their bonus benchmark, as the New York market has been doing, or would they go with something lower?

One major firm with a hefty California presence just announced, and it’s going with the DPW scale. As a tipster excitedly told us, “Orrick, a California-based firm, is matching the Davis Polk scale! Granted, it hasn’t sent out individualized memos yet, but this is reassuring. Baker & McKenzie should step up!” (Actually, we hear that it has; more on Baker tomorrow.)

As noted, individualized bonuses haven’t been communicated yet; they’re not coming until February. But here’s the relevant language from the general memo sent out by partner turned chief talent officer Siobhan Handley (by the way, kudos to Orrick for naming the high-powered Handley to a full-time CTO post; attracting, training, and retaining talent is what a law firm’s all about):

As I know you are aware, there has been significant movement in the bonus market in the US this year. As [chairman and CEO] Mitch [Zuklie] will share with you in more detail, we just completed a tremendous year for the firm as measured by both client results and advancing our strategic objectives, including achieving financial results that enable us to reinvest in our people and our firm. Our Leadership Team believes strongly that our associates contributed to those results and should share in our success. Therefore, we are very pleased to confirm that we will use as “market” the scale that has come to be known as the Davis Polk scale in determining our individualized bonus awards in NY, DC, SF, SV, LA and OC this year. Consistent with our traditional approach, the market scale in SC, PO and SE offices will be slightly lower, reflecting costs of living and pay practices in those locations.

In case you’re wondering, the SC, PO, and SE offices are, respectively, Sacramento, Portland, and Seattle.

Congrats to Orrick associates on the good bonus news. Orrick bonuses are individualized and won’t be announced until next month, so it’s certainly possible that they might not live up to at least some people’s expectations. But Orrick’s acknowledgment and declared intention to match the Davis Polk scale is a very good sign indeed.

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Will other firms with major West Coast presences follow suit? Stay tuned — and keep us posted, by email or by text message (646-820-8477).

(Flip to the next page to read the complete Orrick bonus memo.)

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