Associate Bonus Watch: Mayer Brown (Non-New York)
Here's the memo from managing partner Ken Geller.
Like a law professor in a class full of 3Ls, we have to call on people because we’re not getting enough volunteers. We are calling upon associates at these three firms to reach out to us and tell us what’s going on with their bonuses:
- Bracewell & Giuliani
- Greenberg Traurig
- Steptoe & Johnson
Why these three firms? We have received rumblings and rumors about them, but not enough yet for a story. Please email us or text us (646-820-8477) with information and opinions, including memos if available, so we can bring some transparency to your compensation scheme. Some of your colleagues are already talking to us, so you might as well put your two cents in and make sure our coverage is accurate.
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Now, on to today’s bonus news, which comes from Mayer Brown. Back in January, the firm announced Davis Polk bonuses for qualifying associates. The news was well received in New York, but we did wonder: what would Mayer do in its other offices?
Yesterday we got some information on MB outside of NYC, courtesy of a memo from managing partner Ken Geller:
[O]ur bonus structure, unlike the bonus structures of many other firms, has two components: an hours-based bonus and a discretionary bonus. The Firm adopted this structure a few years ago, after consultation with and input from groups of Associates, to recognize the quality, efficiency and value of the work done for our clients as well as the many other contributions made by our Associates. Accordingly, individual bonus amounts may be more or less than those paid by other firms in which merit-based considerations and non-billable work are given less (or no) weight in overall bonus determinations.
As one of our Mayer sources explained, “Hours that qualify for bonus consideration are billable plus pro bono (up to 100 or 200 with practice leader approval) plus firm legal work. Firm legal consists of ‘billable’ work done for the firm, like defending a lawsuit or doing some transactional/real estate work, definitely not common.”
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Back to the Geller memo:
The Firm is committed to providing competitive compensation that reflects a philosophy of rewarding our talented Associates for their multi-faceted contributions. Therefore, and in response to both the Firm’s strong performance in 2014 and recent market changes, we have increased the discretionary component of the 2014 Associate bonus pool by 23% and the total Associate bonus pool (including the hours-based component) by 15%, in comparison with 2013 levels. Based on available market information, and putting aside outliers at the high and low end, we are confident that our 2014 Associate bonus program is competitive with the bonus programs offered by peer firms in each of our US locations.
According to the American Lawyer, Mayer grew total revenue by 6.7 percent and profits per partner by 12.8 percent in 2014. So increases of 15 and 23 percent in the two bonus pools seem generous, reflecting the firm’s financial success and then some.
But will individual Mayer associates be pleased or displeased by their individual bonuses? We’ll have to wait for that. As one MB tipster told us, “I don’t think anyone has received the actual individual bonus amounts yet, just that teaser memo.” And the money won’t show up in accounts until Friday the 13th — dum dum dum — so we may have to wait until later in the month to see if the Mayer Brown bonuses are golden.
UPDATE (3/26/2015, 3:00 p.m.): Mayer associates — at least the ones we heard from — expressed unhappiness about their bonuses.
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(Flip to the next page to read Ken Geller’s memo in full.)
