Associate Bonus Watch 2009

Associate Bonus Watch: Wachtell Lipton Bonuses Go Down Again

By

2009 Associate bonus watch above the law.JPGLast year, associate bonuses at Wachtell Lipton dipped below 100 percent of base salary, for the first time since 2005. This year, they continued their downward slide.

But given the problems plaguing both the broader economy and the legal profession, bonuses didn’t go down by as much as many WLRK associates expected. The general reaction at 51 West 52nd Street was one of pleasant surprise: “Less than last year, but better than expected,” according to one source. The bonuses were announced last week, around the time of the Wachtell holiday party.

So how much are your friends and classmates at Wachtell taking home this year? Find out, after the jump.

double red triangle arrows Continue reading “Associate Bonus Watch: Wachtell Lipton Bonuses Go Down Again”

Sign up for the Above the Law newsletter

Subscribe to our free daily email and get breaking news, commentary, and opinions on law firms, lawyers, law schools, lawsuits, judges, and more.

Associate Bonus Watch: Cadwalader
(Plus news of some partner moves.)

By

2009 Associate bonus watch above the law.JPGTime for a belated bonus announcement. A few weeks ago, associate bonuses were announced at Cadwalader, Wickersham & Taft.

The bonuses were basically on the Cravath scale, provided you meet “the bonus criteria set forth in the bonus policy.” We’re advised that the bonus criteria focus for the most part on hours, with bonuses triggered at around 2000 hours (1900 billable).

In other CWT news, we hear that two real estate partners — Alan Lawrence and John Busillo — are leaving the firm for Arnold & Porter. Sources describe them as “heavy hitters” who “still have some business.”

The CWT bonus memo, after the jump.

double red triangle arrows Continue reading “Associate Bonus Watch: Cadwalader
(Plus news of some partner moves.)“

Nationwide Salary Thaw Watch: Akin Gump

By

pay freeze salary freeze pay cut law firm.jpgWe previously expressed skepticism towards the notion of a salary thaw. As Elie wrote, “Ha. Haha. Unfreezing? Yeah. Let me just ride my unicorn down the streets of El Dorado and see what there is to see.”
But perhaps the joke is on us. It seems that some firms are unfreezing salaries. On this subject, of course, we are happy to be wrong. Green shoots, an end to the recession — yay!
On Friday, we reported on Allen & Overy’s decision to unfreeze associate salaries. Today we bring you news of a similar decision by Akin Gump.
Memo after the jump.

double red triangle arrows Continue reading “Nationwide Salary Thaw Watch: Akin Gump”

Associate Bonus Watch (and Salary Thaw): Allen & Overy

By

2009 Associate bonus watch above the law.JPGCheerio, old chap! This week brings news of bonuses — and a salary “unfreeze” — in the New York office of Allen & Overy.
Allen & Overy — a global mega-firm with over $2 billion in annual revenue, headquartered in London but with a worldwide footprint — is making a go of it here in the United States. And, as reflected in this latest news, A&O intends to play with the big boys in New York. They’re paying market-level bonuses this year.
And, effective January 2010, they’re paying market-level salaries. The increase in salaries undoes the salary freeze from earlier this year. Green shoots?
But there is a catch. Read the full memo, from New York managing partner Kevin O’Shea, after the jump.

double red triangle arrows Continue reading “Associate Bonus Watch (and Salary Thaw): Allen & Overy”

Associate Bonus Watch: Gibson Dunn Open Thread

By

2009 Associate bonus watch above the law.JPGWelcome to the associate bonus post for Gibson Dunn, which has informed its associates of their 2009 bonuses.
This post is going to look a lot like the recent Sidley bonus post. Bonuses at Gibson, like those at Sidley, are individualized and individually communicated. This is especially true for the non-New York offices. (We understand that New York is a bit closer to lockstep and somewhat more hours-driven, but not completely so.)
As we understand the GDC bonus system, it’s basically run on a grid. Associates in a given class year are divided into categories, based on the usual metrics (e.g., billable hours, quality of work, etc.). Associates in the middle category receive a bonus that’s basically in line with the New York market-level bonus for their class year. Associates in higher categories get bonuses above NYC levels — sometimes as high as double the New York market, we hear. Associates in lower categories get a below-market bonus — or no bonus at all.
Some quotes from Gibson sources, after the jump.

double red triangle arrows Continue reading “Associate Bonus Watch: Gibson Dunn Open Thread”

Associate Bonus Watch: Stroock Strokes Associates With Cravath Bonus

By

2009 Associate bonus watch above the law.JPGStroock’s bonus news is out. The firm will be paying the Cravath scale, if you hit 1900 hours. If you missed that target, you’re out of luck. Here’s the statement from the firm:

2009 bonuses are consistent with the “Cravath scale” with a presumptive threshold of 1900 hours to qualify for consideration. Merit has always been a factor in our bonus program and plays a significant part in determining the level of bonus awarded. In addition, associates who have made extraordinary contributions to the firm in 2009 will be getting more than the Cravath scale.

Our tipsters seem satisfied with the bonus. They are more concerned about Stroock’s pay scale.
Details on that, after the jump.

double red triangle arrows Continue reading “Associate Bonus Watch: Stroock Strokes Associates With Cravath Bonus”

Associate Bonus Watch: Sidley Austin Open Thread

By

2009 Associate bonus watch above the law.JPGBonuses at Sidley Austin are out, and they are all individualized. Perhaps Sidley doesn’t want its associates to know what their colleagues are making.
Which might be a smart move. Above the Law sources report that there is significant variance in the Sidley bonus. We’ve heard of bonus payouts as high as $90,000 for associates. That’s the kind of payment that blows Cravath and S&C out of the water.
But we’ve also heard about associates who received nothing at all. According to our sources, some Sidley associates received a bonus of squat (though none of the people who allegedly received nothing spoke with us directly; all of our tipsters received at least something).
Still, with a big bonus disparity, you can understand why the firm might want to keep the information hidden from its own people. You don’t want these kinds of conversations at the holiday party:
SIDLEY: Look, no large purchases, okay? Don’t draw attention to yourself. Nothin’ flashy.
WINNER: Check out this new coat I bought for my girl! Ain’t it beau-ti-ful ?
SIDLEY: Whatta you, stupid? You’re gonna get us all pinched!
WINNER: I’m sorry, Sidley, I just thought ..
SIDLEY: Get it outta here, get it outta here!
LOSER: Ahh, ahh, Sidley, umm, we’ve got to talk. I ain’t got paid yet.
SIDLEY (to winner): Keep that guy away from me.
WINNER (to loser): Why are you coming in here bustin’ balls? C’mon, it’s Christmas.
LOSER: Look, I see guys with fur coats, guys with fancy Christmas trees, and I ain’t got paid yet. I want my money, I want my money.
WINNER: And you’re gonna get it. Trust me. But right now let’s relax and have a good time.
LOSER: I want my money Sidley.
After the jump, we have a couple of reports on how Sidley chose its winners and losers.

double red triangle arrows Continue reading “Associate Bonus Watch: Sidley Austin Open Thread”

Associate Bonus Watch: Simpson Shares the Wealth with Public Service Fellows

By

2009 Associate bonus watch above the law.JPGHere’s a bit of surprising good news, from a source at Simpson Thacher:

Thought that STB should get its props for the (completely unexpected) notice that those on the public service fellowships will receive a pro-rated portion of the bonus that their individual class years received. Not bad, considering that normally not being employed at the firm by bonus day means no bonus.

This does seem like a pleasant surprise — especially since we now know that Simpson initially didn’t budget for bonuses for younger classes. We looked back at the terms of the public interest fellowship program at Simpson for mention of prorated bonuses for participating associates, and we found none.

double red triangle arrows Continue reading “Associate Bonus Watch: Simpson Shares the Wealth with Public Service Fellows”

Associate Bonus Watch: Dewey & LeBoeuf Helps Me Keep My Clothes On

By

2009 Associate bonus watch above the law.JPGLast week, I wrote:

If Dewey doesn’t follow the market and instead pays what it did last year, I’ll strip naked and run through the streets screaming “I am TTT! I am so TTT!”

Happily for me — and the women and children of the New York metropolitan area — Dewey & LeBoeuf decided to match the associate bonus market. The firm will be on the Cravath scale (not the S&C scale).
Bonus news before Christmas is so much better than re-deferment news during Chanukah.
Check out the full Dewey & LeBoeuf bonus memo after the jump.

double red triangle arrows Continue reading “Associate Bonus Watch: Dewey & LeBoeuf Helps Me Keep My Clothes On”

Does Cravath Need to Match Sullivan & Cromwell?

By

2009 Associate bonus watch above the law.JPGA funny thing happened on the way to Cravath setting the 2009 Biglaw associate bonus. They didn’t. When Cleary matched Cravath’s bonus, 83% of Above the Law readers said that all other large New York firms would follow Cravath. But 83% of our readers were wrong.
Sullivan & Cromwell topped Cravath’s bonus by $5,000 for senior associates (class of 2002). Sure, it’s only $5,000. But that is $5,000 more than senior associates get for staying at Cravath. Call it a $5,000 retention bonus.
Does Cravath — and all the firms that rushed to follow Cravath — need to go back in and up the bonus payout to its senior people?
More discussion after the jump.

double red triangle arrows Continue reading “Does Cravath Need to Match Sullivan & Cromwell?”

Associate Bonus Watch: Fried Frank’s Black Box of Bonuses

By

2009 Associate bonus watch above the law.JPGThis morning brings associate bonus news from Fried Frank. The firm’s bonus announcement reflects the broader Biglaw trend of moving away from a lockstep compensation system.
Last year, Fried Frank employed a standard bonus schedule, along Cravath lines, with bonuses paid out in accordance with seniority. This year, the firm has ditched the traditional class-year bonus schedule, instead paying “year-end bonuses to New York associates in varying amounts up to $35,000.”
So the firm is doling out bonuses “in varying amounts,” up to $35,000 — the top of this year’s Sullivan & Cromwell bonus schedule. But Fried Frank provides no information as to distribution of bonuses, mean or median amounts, etc. (unlike, say, Latham, which does provide such distributional info about bonuses).
What determines the amount of your bonus at Fried Frank? Several factors, including “seniority, levels of activity, quality of and hours worked, client service and contributions to pro bono activities.” Translation: the firm reserves complete and total discretion with respect to bonuses. There isn’t even a bonus guarantee based on hitting certain billable-hours targets.
The full memo appears after the jump. If you’re at Fried Frank, feel free to compare notes about your bonuses in the comments. Is this opacity a way for Fried Frank to get away with paying out less in bonuses? Or is the firm paying out basically the same as under a lockstep system, but just rewarding the high performers and punishing the laggards?
As always, please send us law firm bonus news to us by email (subject line: “[Firm Name] Bonus News”). Thanks.
P.S. The Fried Frank bonus announcement is for New York. We don’t know what FFHSJ plans to do for its D.C. or international associates.

double red triangle arrows Continue reading “Associate Bonus Watch: Fried Frank’s Black Box of Bonuses”

Associate Bonus Watch: Boies Will Be Boies
Generous bonuses, above-market base salaries.

By

2009 Associate bonus watch above the law.JPGYear-end associate bonuses were recently announced by Boies, Schiller & Flexner, the litigation powerhouse founded by the renowned David Boies. And the Boies bonuses were good — very good.

For starters, unlike other top firms, Boies is paying bonuses to first-year associates from the class of 2009. According to Phil Korologos, a partner in the firm’s New York office:

First-year associates who started after September 1, 2009 will receive a $5,000 year-end bonus. First-year associates who started prior to September 1, 2009, will receive the greater of $5,000 or their performance-based bonus.

Performance-based bonuses at the firm can be quite high, depending on how hard you work and the types of cases you work on (contingency or non-contingency). As a result, bonuses at Boies are individualized, not lockstep; there’s no magic number for each class year. The firm provided Above the Law with the high end of its bonus ranges:

For associates after their first year, the amount of their bonus is based on performance. The performance based bonuses for rising second-year associates range as high as $70,000.

The performance based bonuses for associates beyond their second year range as high as $150,000.

Six-figure bonuses? Now we’re getting into Wachtell territory — or beyond (since we suspect Wachtell bonuses will be down quite a bit this year).

In addition, Boies Schiller pays above-market base salaries — just like Wachtell ($165,000) and Williams & Connolly ($180,000). First-year associates at BSF now start at $174,000.

Check out the complete Boies salary scale, plus learn more about how their bonuses are calculated, after the jump.

double red triangle arrows Continue reading “Associate Bonus Watch: Boies Will Be Boies
Generous bonuses, above-market base salaries.“