'The Jig Is Up' -- Opening Up Jones Day's Black Box

This is why there are so many disappointed associates at Jones Day.

bonus-money-unhappy-sad-associate-300x199-2Last week we asked you for more information about Jones Day’s compensation system, and boy, did you respond. See, JD doesn’t make it easy for associates to know how well they are being compensated, comparatively. The firm gives first year associates standard base salaries, dependent on their office, and after that, predictability goes out the window.

There is no official scale for older associates as the system is “closed comp” or “black box,” meaning that nobody knows what anyone else makes. Attorneys, both at the associate and partner level, are just supposed to live with the secrecy. Talking about your comp with colleagues is a violation of firm policy, the firm claims this promotes collegiality and teamwork by eliminating complaints over pay so lawyers can focus on their work and client service. Which sounds nice in theory, but, as we’ve seen, also breeds a lot of frustration.

Another key difference to the JD model: The firm doesn’t pay year-end or midyear bonuses; you get just your base salary. Mid-year, you’re notified of what your base salary will be for the coming year, which, allegedly should be above market to reflect the lack of bonuses, but not so much the reality for associates on the ground. The new salary goes into effect on July 1 and then the following June you get your next pay raise letter, starting the cycle anew.

Our call to open up JD’s black box was taken very well by associates, and we learned some interesting things in the process. First of all, associates at JD are desperate for information. The number and enthusiasm of responses we received was beyond compare. We also learned that no one is happy with compensation. Not a single associate wrote to us to tell us they thought the unique compensation structure at JD was beneficial in any way, and all of our tipsters are uniform in feeling they are getting less than the going market rate, once typical bonuses were factored in.

Between the black box, the confidentiality mandate, the “bonuses folded into the base salary” structure, and the midyear pay increases, the JD system seems to have been designed to avoid all transparency or scrutiny — which is obviously convenient for the firm, less convenient for the associates that work there. Also, a mantra of the firm has consistently been that some poorly performing associates make below market, some all-stars make above market, but that on average, JD pays market…. I am not sure how that could possibly be true.

Also, no one joins a firm thinking they’ll be the low performing associate. Most Biglaw types head into work assuming they’ll be the associate to make top dollar, but that is simply not the case for the majority of associates.

My comp for the year is the same as the new base cravath scale (not including the bonus), so I’m earning roughly 65k under market. [With] very strong performance reviews.

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See, even with great reviews, chances are still pretty good you’ll be making below market.

Every associate that I have spoken with or heard about is incredibly frustrated and upset. Because the salary gap is now so large, associates have already indicated that they were going to put out feelers for other jobs. If management does not act or at least address the situation soon, I am concerned that there may be an exodus of associates in the coming months, which would be incredibly demoralizing and hurt future recruiting.

When folks are working hours that would net them significantly more money at another firm, it is hard to disagree with associates looking for new opportunities.

[W]hen I joined Jones Day, I had no idea I would be so undercompensated and, more importantly, so unappreciated by the firm. We also have no great options for voicing our concerns. We have no associates committee, and the salary letter directs us to the Partner in Charge of the office.

And I’ll note again like other tipsters that Jones Day seems to be trying to peg salaries to the July 1 class year, thinking we will forget in 6 months that everyone else in our class year gets another bump PLUS a bonus. Finally, I note that some outliers are getting above this, sometimes equalling or surpassing those in the previous year (e.g., a class of 2014 grad getting near 210k), or even some way below this (e.g., class of 2012 grad getting near 210k). But even those high-end salaries are below market, and only happen to 1-2 people per class year.

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The pay is honestly very low for most people and the way the firm has handled the Cravath bump is embarrassing. Many of us feel like the recruiting line about bonuses being folded in is not at all reflective of reality, which is completely unfair to recruits and us. Some people are well compensated, but even people who are ok with their bump are usually well below actual market.

I can confirm that we are essentially paid a salary-at best-slightly above base market in any given year, but not inclusive of any market bonus. I have consistently hit hours levels that at any “peer” firm would have earned me top market bonus, and have consistently earned approximately $15,000-50,000 less in any calendar year than I would have if I worked elsewhere.

See, I told you that the associates we heard from were not happy with the recent raises. Without getting bonuses, because they are supposed to be folded into the base number, they wind up well below their Biglaw peers.

JD has tried its best to trick associates into thinking we are being paid by market by (1) giving raises in July instead of in January, and (2) allegedly rolling bonuses into base compensation, but the jig is up.

I was reluctant to write in because who wants to discourage good people from coming to your firm, but enough is enough. Please warn recruits, if you come to Jones Day, DO NOT expect to be paid a market salary when bonuses are factored in. If you bill over 2000 and you have good reviews, your base pay will likely be at or above market, but NO ONE I have talked to is getting paid enough to compensate them for the market bonuses.

That’s the other disturbing trend we are hearing from tipsters, they feel their compensation reality is very different than what they were promised when they interviewed. As with other firms that try to hide the ball regarding mid-level and senior associate compensation, it is incredibly important for potential hires (in law school or as laterals) to do as much due diligence as possible so they don’t wind up with an unhappy surprise a few years down the road.

Towards that end, we have compiled the compensation data we have received. In order to protect the identity of the tipsters, we’ve omitted the specific office location, but included whether first year associates were on the $180,000 or $160,000 base. We’ve also included a general description of the hours these associates worked, where we have the information, to provide more context for the salary numbers. Remember, these are the “all in” numbers, supposedly designed to fold in the market bonuses associates at other firms will receive come the end of the year.

As you can see, very few of these numbers outright break the Cravath scale for a given year, and when you factor in bonus season, well, you start to understand why there are so many disappointed associates at Jones Day.

If you’d like another opportunity to sound off, feel free to email us (subject line: “Jones Day”) or text us (646-820-8477) with any and all information — or complaints — you have about your compensation.


Kathryn Rubino is an editor at Above the Law. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).


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