Associate Bonus Watch: A Former Bonus Leader Takes A Tumble

A market match would be good news at many firms, but this firm's associates are used to much better.

sad-Biglaw-associate-low-bonus-no-moneyWhat a difference a few months can make. In July, Cahill Gordon announced summer bonuses — pretty much the only Biglaw firm to do so. Commenting on the news, my colleague Staci Zaretsky noted that “Cahill’s comp is consistently above market…. This firm doesn’t make it rain, it makes it pour.”

But the rain hitting Cahill right now seems to be a mere drizzle. Earlier this week, Cahill announced its 2015 year-end bonuses. The firm matched the market, defined in 2015 by the Cravath scale.

At many firms, a market match would be good news. But Cahill associates have gotten used to much, much more. In recent years, the firm has paid out (1) midyear bonuses in the summer, (2) “special” bonuses in December, and (3) Cravath or NYC market-level bonuses in January. So getting nothing in December and a mere market match in January is something of a letdown to Cahill associates, given the high standards Cahill has set for itself.

Here are some reactions from disappointed or irate Cahill associates:

  • “They did match Cravath. People are annoyed that they waited this long just to do that with no more. They also passed over the entire litigation partnership class. People are pissed about that and think there’s no future in litigation. They made the two corp guys and made one corp guy early.”
  • “[Associates were already upset at the firm] taking so long to announce because it left some people in limbo in the job search…. They definitely didn’t have a good year in corporate compared to years past and a lot of their huge litigation (S&P) settled at the beginning of last year so it was slow in litigation as well. Sounds like morale is pretty low right now.”
  • “Word is that they’re hoarding cash in case they have to settle the DNJ asbestos/document destruction litigation.”

In addition, a Cahill tipster tells us that “some mid-level and junior associates were let go yesterday…. I don’t have concrete numbers yet, but it’s being termed performance-related. Very weird and tense vibe right now, especially in litigation.” Another source at the firm, however, denied awareness of any unusual cuts, adding that “it might just be the typical Cahill ‘you have six months to get out.’ They’re usually really lax about outright firing.”

We reached out to the firm about this report of reductions, but have not heard back yet. Last night the firm declined to comment on its bonuses.

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Headcount reductions would not be shocking if true; Cahill can be a “boom or bust” kind of place. In the past few years, it has blown standard Biglaw bonuses out of the water and boasted some of the highest profits per partner in all of the Am Law 100 ($3.6 million in the most recent rankings, a #5 finish). But before its recent prosperity, during the depths of the Great Recession, the firm conducted multiple rounds of reductions, in January 2009 and January 2010. Forget about April; at Cahill, January is the cruelest month.

If you have information about goings-on at Cahill that you’d like to share, related to bonuses or layoffs or anything else, please email us or text us (646-820-8477).

Earlier: Associate Bonus Watch: Biglaw Summer Bonuses!
Nationwide Layoff Watch: Cahill Gordon Resolves To Lose Some Weight
Nationwide Layoff Watch: Cahill Gordon

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