The powers-that-be at Mayer Brown have made their decisions on bonus and salary adjustments, as announced in an email last night. And it appears that they've taken a page from the Dechert playbook, according to one associate:

"The second paragraph [of the memo] is a shock. We were never informed of financial ramifications for failing to enter our time."

It might be slightly annoying, but it's the growing trend. Expect more firms to adopt policies that tie compensation to timely time entry. Email exhortations without financial consequences don't seem to be very effective.

(And it's arguably not that big an imposition. You already slave away at the firm for ten or twelve hours a day -- so what's another five minutes at the end, to enter your time before heading home? It's just a matter of getting into the habit of doing it, instead of letting a backlog build up.)

The Mayer Brown memo, after the jump.

We previously reported on bonuses in the New York office of Winston & Strawn. Now it's Washington's turn:

Winston & Strawn's DC associates recently received their bonuses. Associates received individualized bonus memos, so there is nothing that can be posted (this has been firm policy for years).

Bonuses were up significantly over previous years, and every associate seemed to be very happy with what they received. The general feeling is that the firm stepped up to the plate and is committed to paying market bonuses.

We do have one data point to pass along. One source (whose class year we won't reveal) received a bonus that was higher than the NYC market year-end bonus, but lower than the NYC market-plus-special bonus, for someone of their seniority. Pretty good (although this person did bill north of 2400 hours).

Speaking of Winston & Strawn in D.C., we hear that a very interesting meeting took place on Monday morning, concerning controversial remarks made by managing partner Tom Mills to the Wall Street Journal. We're working on a post. If you can enlighten us about what transpired, please drop us a line. Thanks.

We were surprised by the strong, almost vitriolic commenter response to our recent post about Dechert LLP. The firm announced that it was reducing bonus amounts for associates who failed to enter their time in timely fashion.

We weren't the only ones who were taken aback by reader reaction. From a source at the firm:

[See this memo] concerning Dechert's bonuses, which increased substantially from the prior year. It looks like some of the criticism in the comments to [your recent] post are a little overzealous.

I don't know how any associates are claiming that they were surprised by the announcement regarding time entry. The firm has been gradually tightening its policies on this over the last year, and there has been ample notice that there would eventually be a little financial pain for people who didn't get with the program.

In light of the abuse we've been taking in the comments, it would be great if you could do a post pointing out the increase in bonuses from last year.

We're happy to. Check out said memo, after the jump.

How can law firm administrators get associates to enter their time on time? Here's one idea: link time entry to those beloved bonuses.

From a source at Dechert:

Attached is an email that all the attorneys at Dechert LLP received today regarding associate bonuses and potential penalties. According to the policy outlined below, an associate's bonus may be reduced by up to 10% due to the late submission of billable time over the past year. I thought this might be of some interest to your readers.

We agree. Might this become a Biglaw trend? Nagging emails about timely time entry are easily ignored. Slashing bonuses, on the other hand, tends to grab associates' attention.

In fairness to the firm, it's worth noting that the policy is not super-draconian. Most of the bonus reductions were under 5 percent, and delinquent associates have the opportunity to redeem themselves: "[E]very associate whose 2007 bonus is reduced will have the opportunity to earn the amount of bonus reduction back, if he or she remains in good standing and complies fully with our time-recording policy in 2008."

Check out the full memo, after the jump.

We've spent a ridiculous amount of time and energy trying to get to the bottom of the bonus situation at Cadwalader, Wickersham & Taft. We've heard all sorts of conflicting rumors, but we think we've finally figured things out -- to the extent that they can be figured out. This post supersedes all prior coverage of CWT bonuses.

In Litigation, we think that bonuses were fairly straightforward. This is our understanding, on very good authority:

1. 1900 hours and above = full, market-level, year-end and special bonus.

2. Between 1850 and 1900 = 75 percent of the regular year-end bonus, but NO special bonus.

3. Below 1850 = nothing, nada, zilch. Unless you were a first-year from the class of 2006 (first full year at CWT), in which case you got 50 percent of a year-end bonus.

4. For purposes of calculating hours, only client billable, pro bono, and "pre-approved" marketing hours counted. Other marketing hours, and recruiting hours, were NOT counted.

Read more -- including a dramatic epic narrative from a CWT associate, describing how the firm epically mishandled the bonus situation -- after the jump.

Today brings us bonus and salary news from DLA Piper, the biggest of all Biglaws. Back in November, the firm was crowned by the National Law Journal as the nation's largest law firm (with a whopping 3,623 attorneys).

DLA Piper may be the biggest -- but not when it comes to bonuses. From a disgruntled tipster:

It's official: no special bonuses for DLA Piper's New York office. But first year associates in our secondary offices got raise to a $160,000 start. I attach the chart. [Ed. note: It's after the jump.]

The firm did it in a very slimy way with no official announcement, just individual notices of bonuses. Pretty funny after last year's heralded promises to stay with the New York market... I guess Frank and Lee thought: "never mind."

So was DLA Piper managing expectations when it issued a somewhat gloomy email earlier in the month? From a few weeks ago (around January 8):

I'm an associate at DLA Piper and we got a firmwide email discussing the firm's 2007 finances and applauding us all on a job well done. They exceeded expectations and last year's totals. However, the email closes with this paragraph:

"While we are pleased with the results for 2007, we approach 2008 with caution, given the uncertain economic outlook. We intend to be conservative in both our budgeting for 2008 and in our financial management."

It may be nothing... but I feel like they are bracing us for something, whether it's crappy bonuses or no pay increase. Good times!

Today's bonus and salary memo, plus the firm-wide salary chart, after the jump.

A little follow-up on Kaye Scholer, whose bonus memo we posted back in November. From a source at the firm:

Just found out that despite the memo sent to associates last year, Kaye Scholer has decided to tie the special bonus to hours. Requiring 2200 hours to receive the special bonus.

There was no mention of this hours requirement in the original memo. Of course, it was designed to appear that Kaye Scholer was paying market when they had no intention of doing so.

But in fairness to the firm, they did leave themselves with some wiggle room, stating that special bonuses would be paid on a "discretionary" basis. It just seems that 2200 was the magic number required to trigger the exercise of said discretion.

Some associates aren't happy about how that requirement was communicated (or not communicated, as the case may be). One associate claims that managing partner Barry Wilner, at a meeting held last year to discuss the bonus situation, did not disclose that 2200 hours would be the cutoff. As a result, "[a]ll the associates had to go on were rumors, which caused many associates to scramble at the last minute to achieve what they thought would be a sufficient amount of hours.... I'm not so much concerned about the amounts involved as much as I am concerned about the lack of information that floats through this firm."

Two other bizarre bits of news about Kaye Scholer -- involving "a giant Care Bear" and a roller derby queen named "She Raw," which would seem to take the firm to Venable-level heights of weirdness -- after the jump.

Here are a few quick updates on the associate bonus front:

1. Wilson Sonsini: On Monday night, the firm issued a long and complicated memo, which we've posted in all its glory after the jump. Since we haven't taken math since high school calculus, it went a bit over our head.

General reaction to the WSGR bonus news was less than positive. From one tipster: "My friends there are pretty pissed in light of Latham's bonuses." From another:

"Some constituent groups (those with low hours) are happy. Other groups (people who work for a living) are less happy. All associates outside of New York are upset that New York special bonuses were paid without a minimum hours requirement."

Under the WSGR bonus system, in certain class years, a lawyer in New York who billed 500 hours less than her counterpart outside New York could wind up with a bigger bonus.

2. Akin Gump (Washington, DC): On rather short notice -- the email went out at around 1 p.m., announcing a meeting at 5 p.m. -- a meeting to talk about bonuses was held on Monday in the D.C. office of Akin Gump. Here's the bottom line:

[T]he gist was that bonuses "ranged from $1,000 to 75,000," which basically means that if you are a first year (or any associate who started in the fall) you got $1,000, and the most senior associates who are most valued got $75,000. Associates were also told that the average was $25,000. This was not broken down by class year, hours, or any other details that may tell you whether you'll be compensated well or terribly.

Lovely. Guess they think transparency is overrated

3. Quinn Emanuel: At Quinn Emanuel, in contrast, management is fairly transparent, and communication is relatively open (at least by Biglaw standards). How many senior partners of major law firms write open letters to ATL, as John Quinn did recently?

Anyway, two pieces of news. First, yesterday QE gave supplemental bonuses today to laterals, recalculating how they pro-rated (a subject of prior controversy). Second, they provided some information -- albeit not terribly specific information -- about billable hours and 2008 bonuses. Memo after the jump.

Before the New Year, associates in the New York office of Morrison & Foerster received their bonus news. Now it's time for their colleagues outside of NYC to collect their cash.

In addition to the firm's "standard productivity bonuses under the published 2007 compensation program," MoFo is paying out (1) "a one-time bonus" (it sounds "special" to us), ranging from $10,000 - $20,000, to associates and certain of counsel who met or exceeded their hours requirements, and (2) merit bonuses, for "exemplary lawyering and exceptional teamwork," ranging from $15,000 - $30,000.

Full memo, after the jump.

We don't really have any major bonus news to pass along. Here are a few items following up on previously reported developments:

1. Latham & Watkins: On Friday we reported on the LW bonuses, which were well-received by associates. We now have more detailed information, which appears after the jump.

2. McDermott Will & Emery: We wrote here about their decision to issue supplemental bonuses. Those bonuses have now been paid, and people are happy. More details after the jump.

3. Cadwalader, Wickersham & Taft: As previously reported, the bonus situation over there is rather vague. An addendum, also after the jump.

We've been hearing a bit about the bonuses paid out by Latham & Watkins. It seems that LW associates are quite pleased.

Going back to our post from earlier today, it seems that one tipster's speculation about a meeting to spin bad news was off the mark. A second LW source had this rebuttal:

Sometimes our offices have meetings to discuss bonuses. I am aware of one office that had a similar meeting last year, on the day in which bonuses were given. I think it's more to go through the bonus memo and answer any questions, rather than to break any bad news.

And apparently there was no bad news to break. If this chart (posted at AutoAdmit) is correct, Latham associates did pretty well for themselves.

We haven't received confirmation of the chart (yet -- we're working on it). And the chart also doesn't reflect unspecified additional amounts paid out in New York. But LW sources did write in to say they're pleased with their hauls:

"I think people are pretty happy with what they received."

"Overall, bonuses are better than ever. They matched or more than matched in every market, for people who hit 1900 billable hours (a goal that is very clear -- there was no doubt from the day I was hired that I needed 1900 to get a bonus). Bonuses in non-NY offices are far higher than they were last year (minimum - $35,000) and New York seems to have matched and/or exceeded the Cravath model. Overall, I am very happy!"

Update: The accuracy of the chart has been confirmed for us by multiple sources at Latham.

Latham bonus memo for 2007 [AutoAdmit.com]

Earlier: Associate Bonus Watch: Reading the Latham Tea Leaves

Yesterday the D.C. office of WilmerHale made its bonus announcement. Here's a summary from a source at the firm:

The bonus memo came out today. Yay! Salaries are the same. For the class of 2006, the hours guideline for bonuses is:

Hours Bonus
1,850 $15,000
2,000 $35,000
2,200 $40,000
2,400 $45,000

Management gave the caveat that bonuses were awarded for 1,850 hours only in some cases, basically for practices that were slow in which 2,000 hours could not be billed. The firm repeated that it expects lawyers to bill 2,000 hours per year (including pro bono).

If you have info on other classes, feel free to send it our way by email.

Update: A second source confirms the numbers above for first-year associates, and adds: "This was conveyed in personal letters stating our salary and bonus levels. New associates who started in the fall received prorated bonuses."

Expect bonus news in a matter of hours from Latham & Watkins. An LW source writes:

Some are speculating Latham will try to cheap out on bonuses because [last night] we received an e-mail to all associates that there will be a meeting Monday to discuss bonuses. I don't remember them doing this last year, and some people think they may issue low bonuses Friday, then do damage control Monday.

Of course it may also not mean anything too.

In other words, nobody knows anything. And we'll know the real answer very soon anyway.

But if you can't engage in time-wasting speculation on a blog, where can you do it? Read and parse the email for yourself, after the jump.

As you may recall, back in November, Weil, Gotshal & Manges announced special bonuses, at market levels. In its memo, the firm explained that year-end bonuses would be announced at a later point:

As is customary, 2007 year-end bonuses will be paid at market to associates receiving an “Overall Strong” rating and will be above market for associates receiving a “Distinguished” rating in class years 2003 and above. Year-end bonuses will be paid on January 25, 2008.

That point has come. Weil just announced its year-end bonuses -- and for top performers at more senior levels, i.e., "Distinguished" associates in the class of 2003 and above, the bonuses are above market.

For details, check out the memo, after the jump.

Back in November, Cadwalader, Wickersham & Taft issued a bonus memo that was devoid of numbers. Today, the CWT associates who survived the recent layoffs -- which, to be fair, is most of them -- learned how much they'd be getting.

But since there was no firm-wide memo, there's still a lack of total transparency about how much people are getting. Associated were notified individually:

"CWT announced its bonuses today in individual letters to the remaining associates. Some people got full market bonuses and others got letters that merely told them what 2008 salaries are, with no mention of a bonus."

If you can shed more light on the situation, feel free to post in the comments, or email us. Thanks.

Sorry it's been a little slow around here for the past few hours. In the morning, we had some technical difficulties. For most of this afternoon, we've been offline, speaking at this D.C. bar panel.

Anyway, now we're back. And we have a fair amount of bonus information to pass along.

The New York office of Winston & Strawn has announced year-end and special bonuses. Memo after the jump.

A report on bonuses (such as they are) at K&L Gates in New York:

No notice -- not even an email. Apparently, the "highly confidential" memo appearing on ATL last year less than 24 hours after its release wasn't appreciated.

We were told that we would find out what the bonus was when it hit our bank accounts. The money hit our accounts this past Saturday, and it was a friggin' joke. Since our handlers are doing their best to hamper communication, we've been forced to piece together an unofficial chart. Here's the sad tale, by class year:

2007: Zero
2006: 0 -- $15,000
2005: $20,000 -- $30,000
2004: $30,000
2003: $35,000
2002: $35,000
2001: $35,000 -- $40,000
2000: $40,000 -- $50,000

The high end of each class's range was obtained by one, maybe two associates.

And that's in New York; we'd expect other offices to be lower. If you have info on them, feel free to email us.

Last week, a Boston tipster told us:

As you probably know, the rest of the Boston firms will begin announcing bonuses next week (finally). Anyway, just thought I'd let you know that associates at Goodwin Procter received a very short email yesterday that there would be a meeting on Tuesday at 1pm to discuss "this year's attorney review process, review delivery and total compensation determinations." We'll be crossing our fingers that the firm will match NYC and the bigger Boston firms (Ropes, Proskauer, Weil) with the special bonuses.

Goodwin is on a 9/31 fiscal year and 2007 was their best year in the firm's history. If they cheap out, there will be a LOT of complaining.

It looks like they didn't "cheap out." From a different source, who was at this afternoon's meeting:

Goodwin Procter matched regular and special bonus - 1850 billables (I know not a true match from you perspective, but in reality there are very few firms in the city who do not have some hours requirement; all things considered, theirs is low). No memo, had an all associate meeting. All other offices on the NY scale w/o special bonus.

P.S. Completely unrelated to law firm life, Heath Ledger has been found dead in New York. He was a talented young actor. May he rest in peace.

As we mentioned last week, McDermott Will & Emery was planning to hold a meeting with associates today about compensation matters. The meeting is over; here's a brief report:

The MWE associate compensation committee had a videoconference with all associates this morning, where they ate crow about their bonus structure for 2007. They basically said, "we missed the market, we're sorry, and we're fixing it."

They are meeting on January 23rd to set the rate for supplemental bonuses, which will be announced at the end of this month. Apparently the risk of losing all their top billers and having it smeared all over ATL was more than our delicate leadership could handle.

So no numbers yet; expect them near the end of this month. We'll keep you posted.

Some associates at Quinn Emanuel are a tad grumpy these days. But here are three items to cheer them up:

1. Profits per partner clear $3 million. As we previously reported in these pages, some QE associates were rather unhappy with their bonuses. But look on the bright side: stingy bonuses mean more money once you make partner.

As reported by Zusha Elinson in the Recorder:

Quinn Emanuel Urquhart Oliver & Hedges continued its screaming ascent in 2007 with financial results that should put a scare into the most profitable New York firms.

The Los Angeles-based litigation shop reported that profits per partner hit the $3 million mark last year -- a height surpassed by only three firms on the Am Law 100 list for 2006.

"That's Wachtell country," said Ronald Beard, a law firm consultant with the Zeughauser Group, referring to the highly profitable New York deal shop Wachtell, Lipton, Rosen & Katz.

Managing partner John Quinn offered a rebuttal to the bonus complaints:

The financial results didn't prevent some associates from complaining about their bonuses. Legal blog Above the Law reported griping that the firm unexpectedly drew the line for full year-end bonuses at 2,100 hours, 100 hours more than the previous year.

Quinn said that decisions about bonuses are made at the end of the year, not beforehand, and that 2,100 was "not necessarily" a bright line. He added that Quinn associates were given a special bonus this year on top of the normal ones, matching a move made by only a few elite New York firms.

"If [Quinn associates] are not the most highly paid, they're among the most highly paid in the country," Quinn said. "Any suggestion that the firm has done really, really well and the associates haven't shared is false."

We have a rebuttal to the rebuttal from a disgruntled associate. Check it out -- but caveat lector, this tipster may have an ax to grind -- after the jump.

Update: Note the many defenders of the firm in the comments. Not all associates are whiny bee-atches!

2. Susan Estrich is in da house. Quinn seems to have a weakness for high-powered litigatrices. Already home to former Stanford Law dean Kathleen Sullivan, the firm just added Susan Estrich, who joins as Of Counsel in the Los Angeles office. From one associate:

Susan Estrich just joined our firm. Classic.

Now when I watch Fox News at home, I'll hear plugs of work.

3. Retention bonuses: We're looking into reports of retention bonuses in the high five-figures, which vest in 18 months. In light of the dissatisfaction in the ranks, retention bonuses may be just what the doctor ordered.

Quinn Partner Profits Clear $3 Million [The Recorder via Law.com]

Earlier: Associate Bonus Watch: A Few More Updates