Associate Bonus Watch: Still More Boutique Bonus Bounty
This firm's approach to calculating bonuses is a bit different, but the end result is still bonuses well above market.
Pop quiz, hotshot: which law firm was the first to follow the new Cravath pay scale announced in June of this year?
If you guessed Milbank Tweed or Paul, Weiss — firms committed to matching the market, but unlikely to beat it — that’s not a bad guess. But the correct answer to this question is a boutique: specifically, Hueston Hennigan, the California litigation powerhouse that matched Cravath later that same day.
Given Hueston Hennigan’s commitment to compensating its associates well, reflected also in its spring bonuses announced in April, it should come as no surprise that the firm’s year-end bonuses are very nice indeed. The firm takes a somewhat different approach to setting bonuses — it calculates them as a percentage of an associate’s base salary — but the end result is still what we’ve seen at a number of other top boutiques: market-beating bonuses.
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Based on what we’ve heard from our sources, it appears that Hueston Hennigan bonuses range from 30 to 50 percent of an associate’s base salary, with the average around 40 percent. So if you take the firm’s base salary scale, which starts at $180,000 and goes up to $315,000, you’re looking at second-year bonuses averaging around $76,000 and third-year bonuses averaging around $84,000. Those amounts compare very favorably to the Cravath-scale bonus amounts of $25,000 and $30,000, respectively, for second- and third-year bonuses.
These year-end bonuses come on top of Hueston Hennigan’s spring bonuses, which were $10,000 for each associate. And they also come on top of the firm’s contributions to associate 401(k) accounts, which start at around 3 percent of the associate’s gross pay and do not require any contribution by the associate (so it’s even better than an employer match — which, sadly, few law firms still offer).
(After a quick story we did on Biglaw 401(k) plans got a surprising amount of reader feedback, we’ve decided to delve more deeply into the topic. Our research team here at Above the Law is working on something; if you have information you’d like to share, please email research@abovethelaw.com, subject line “401(k) info.”)
The firm makes 401(k) contributions for staff as well as associates. And it also pays generous year-end bonuses to staff, which is a sadly uncommon practice these days.
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Here are reactions from some happy Hueston Hennigan associates:
- “Once again, Hueston Hennigan beat Cravath by a long shot. The firm ensured it would remain a compensation leader along the lines of Wachtell — you’ll recall the firm also gave $10k spring bonuses.”
- “Firm announced individualized bonuses earlier today. Everyone is pleased and the firm continues to beat market. Bonus formula was based on a percentage of your salary. Junior associates got over 3x market.”
- “Way above market. As was done last year, I understand they were based on individual qualitative and quantitative factors, but were relatively close within each class…. People are very happy. Lots of positive energy around the office. This is seen as an expression of appreciation for the work we do. It’s probably a strong recruiting move as well.”
Indeed. While law firm life isn’t all about money, generous compensation often goes hand in hand with cutting-edge work, satisfied clients, high morale, and other attributes you want to see in a legal employer.
Congratulations to the Hueston Hennigan associates on their great bonuses, and congrats to the firm on its continuing success.
UPDATE (12/13/2016, 2:40 p.m.): In other Hueston Hennigan news, the firm recently announced that Alex G. Romain, previously a partner at Williams & Connolly, has joined Hueston Hennigan as a partner. For more, see the Daily Journal.
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David Lat is the founder and managing editor of Above the Law and the author of Supreme Ambitions: A Novel. He previously worked as a federal prosecutor in Newark, New Jersey; a litigation associate at Wachtell, Lipton, Rosen & Katz; and a law clerk to Judge Diarmuid F. O’Scannlain of the U.S. Court of Appeals for the Ninth Circuit. You can connect with David on Twitter (@DavidLat), LinkedIn, and Facebook, and you can reach him by email at dlat@abovethelaw.com.
