Perks / Fringe Benefits

Biglaw Perk Watch: London Pay is Falling Down

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Cravath screws associates on bonus CSM.jpgLast year, we reported on a nice perk for Cravath associates abroad: a hefty cost of living allowance, which had junior associates in London making over $300,000.

It looks like the half-Skadden mentality has made its way across the Atlantic. From a tipster:

Cravath Swaine & Moore cuts its COLA in the London office from $110,000 to $60,000 as of January 1, 2009. [A]ll the associates, one after one, where called into the office of a partner, Philip Boeckman, to receive the news. The reason mentioned for the cut is the evolution of the dollar-pound exchange rate.

The COLA is the same for all associates in London regardless of the level of seniority. The COLA gets paid together with the base salary on a bi-weekly basis.

That’s a big cut for the 20 associates in the London office. Before the COLA was raised to $110,000 last year, it was at $85,000.

RollOnFriday is not overly sympathetic:

Clearly the firm’s partners have now got wise. This week associates were hauled in one by one and told that the COLA would be reduced by $50k from 1st January, in response to weakness of Sterling. One associate complained to RollOnFriday that this comes on top of bonuses being halved and the ski weekend being cancelled, and says that these measures “pretty badly affect associate morale”. OK, no one likes to get less wedge – but low morale because of only getting £40k to live in London, when everyone else is being made redundant? Bring out the violins.

The other side of the pond just got a lot less attractive.

Earlier: Biglaw Perk Watch: Working Abroad

Cravath London associates lose £34k bonus [RollOnFriday]

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Open Thread: Downsizing the Perks

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tightening the belt.jpgWhen we did our series of Vault 100 open threads in the summer, Biglaw insiders shared insights into office culture, with much touting of work perks at various firms. These days, attorneys can brag if their firms are not among those laying associates off.

Reuters reports on perk cutbacks in the finance world, such as the elimination of business-class travel and free sodas in the office fridge. On ATL, we reported in October that K&L Gates was eliminating ABA dues payments and switching to one-ply toilet paper. (This was followed by news this month of staff layoffs).

A tipster from Kirkland & Ellis tells us the New York office is downsizing breakfast:

i know this is a little obnoxious because lots of other firms don’t have breakfast at all, but we at kirkland ny are pretty proud of our breakfast spreads: tropicana if you get in early enough, bagels, fruit, yogurt, and fancy nature’s path cereals with flax and berries and stuff. so imagine our shock and horror when we saw this hidden away in the weekly memo:

NEW BREAKFAST MENU

Beginning November 17, the breakfast menu will be changed to fresh fruit and bagels. In order to make sure there is enough for all, additional numbers of each item will be provided. We may find that the ratio of bagels to fruit needs to be adjusted to best meet preferences. Please let Pam Grazia at extension 3179 know if that is the case in the pantry on your floor.

its not the loss of the yogurt and cereal, although that does hurt. its more the sneaky way it was hidden in the memo that nobody reads!

While firms are unlikely to cut back on big perks like parental leave, this is a time for tightening the belt in other areas. We say: Better the loss of the granola than the loss of the librarian.

Are you seeing perk erosion at your firm? What is being cut back? What should be cut back? (Our Kirkland tipster tells us NY associates still get the $350 office art budget.)

Unsold Ferraris, no free drinks as crisis spikes [Reuters]

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Associate Life Survey: Summer Escapes

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funny-pictures-pawshank-redemption.jpgIn last Monday’s ATL / Lateral Link survey, we asked you whether you were taking any vacations this summer.
We received just under 900 responses, and the overwhelming majority of you reported that you will be escaping the office for at least a little while this summer.
Overall, 86% of you have taken, or will take, a vacation, or at least a vacation day:
  * About 24% of respondents are taking a quick break of 1 to 3 days.
  * Another 18% of respondents reported summer vacations of 4 or 5 days.
  * 16% are taking between 6 and 8 days, and 13% are going for two weeks.
  * About 5% of respondents are taking 3 or more weeks.
Among the attorneys who aren’t taking vacation this summer, 46% said that they just have too much work to get done. But 35% have the opposite problem: they need the hours. A surprisingly high number of respondents, 28%, said that they just don’t feel comfortable taking vacations. Only 7%, however, said that a partner told them not to take a vacation this summer. Another 7% are sticking around because they want to impress people, which will perhaps cause their peers to want to take more vacations themselves.
Of course, whether in the office or out, not all attorneys can completely escape their responsibilities. An unlucky 13% of respondents have had to cancel vacation plans this summer, and 55% of respondents with uncancelled summer plans either did work or expect to work during their vacations.
But hey, a busy summer is much better than the alternative, right?
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Justin Bernold is a Director at Lateral Link, the sponsor of this Associate Life Survey.

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Associate Life Survey: Summer Vacation?

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dont-go-pleez.jpgIn today’s ATL / Lateral Link survey, it’s time to focus on time off.
ATL has previously reported on firms trimming the length of their summer programs, in part because of economic doldrums, but also at least purportedly in part because of vacation cycles.
As one firm’s managing partner put it: “We believe that the August vacation season for our attorneys is simply not a period that is conducive to a positive Summer Associate experience.”
So, it being “vacation season,” are you taking any?
Update: This survey is now closed. Click here for the results.
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Justin Bernold is a Director at Lateral Link, the sponsor of this Associate Life Survey.

57 Comments

Associate Life Survey: The Care And Feeding Of Summer Associates

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funny-pictures-cat-loves-food.jpgLast week’s ATL / Lateral Link survey on trimming summer associate programs is still open, but we’ve already been getting some interesting debate in the comments.
For law students, trimming the summer programs — or at least the summer salaries — would be a critical financial blow:

[L]aw School tuition is fucking EXPENSIVE. I take out 55k per year in loans here at CLS (45k of which goes to tuition + fees). Luckily, I have no undergrad debt. The financial aid office suggests that the average student take out 64k per year in loans. In sum, you misers need to talk to school adminstrations before cutting pay.

But once they’ve achieved permanent (or not so permanent) employment status, some associates would prefer to see a slimmer summer experience:

It’s not right that in a market where good associates are being kicked to the curb for economic reasons we’re throwing buckets of money at a bunch of kids who don’t know anything and just teaching them how to be (more) entitled. Shorten the summer and pay them a salary that has some correlation to what they’re worth – they are mere interns.

Other associates, however, are still in favor of lunch:

I thought ATL was on our side. The open budgets and free lunches are a perk to associates too.

And one tipster wonders just how free those lunches are from firm to firm:

Might be a good time next week or two weeks from now to do a post about summer lunch budgets. I just heard on the grapevine that we’re having $25/person limits, with anything over it coming out of the associate’s pockets. I know some other firms have a $30 or $50 limit.

So, today’s ATL / Lateral Link survey focuses on both lunch and morale. How much can you spend on lunch with the summer associates, how often do you do lunch, and would associates at your firm be upset if the summer program went away?
Update: This survey is now closed. Click here for the results.
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Justin Bernold is a Director at Lateral Link, the sponsor of this survey.

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Associate Life Survey: Everything (Else) You Always Wanted To Know About Starting Bonuses But Were Afraid To Ask

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funny-pictures-cat-furniture.jpgWhile responses to last week’s ATL / Lateral Link survey on summer associate programs continue to flow in (add your 2 cents here), let’s pause to consider what last year’s summer associates are going to experience over the next few months: bar exams (sorry), relocations, and sweet, sweet signing bonuses (or not).
We’ve received about a hundred comments and tips since we posted our “Everything You Always Wanted To Know About Starting Bonuses But Were Afraid To Ask” table, which aggregated the results from our ATL / Lateral Link surveys on bar stipends and reimbursements, salary advances, and signing bonuses, relocation benefits and whether you have to pay it all back when you leave.
So today, we’re updating the table to fill in some more blanks.
The table below now shows six things for each firm:
  * which bar exam expenses the firm will reimburse (send us tips to fill in the blanks),
  * whether the firm pays new associates a summer stipend or a signing bonus or graduation bonus (not counting clerkship bonuses, which are discussed elsewhere),
  * whether the firm provides salary advances (i.e., loans) in any particular amounts,
  * whether the firm provides any particular relocation benefits,
  * whether the firm provides a pro-rated bonus (a “stub bonus”) for the period between your start date and the end of the year first year, and
  * whether the firm will make you pay it all back if you leave. As a general rule, payback requirements will apply to everything but a stub bonus, and will include clerkship bonuses.
And now, that introduction aside, read on to see the aggregated table of bar reimbursements, stipends and bonuses, salary advances, moving expenses, stub bonuses, and payback requirements. Check it out, after the jump.

double red triangle arrows Continue reading “Associate Life Survey: Everything (Else) You Always Wanted To Know About Starting Bonuses But Were Afraid To Ask”

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Featured Job Survey: Everything You Always Wanted To Know About Starting Bonuses But Were Afraid To Ask

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money cash ATL Above the Law blog.jpgLast week, we posted Part Four of the results from our ATL / Lateral Link survey on bar stipends and reimbursements, salary advances, and signing bonuses, covering the range of firms from Akin Gump to Young Conaway. We’ve also posted results from our surveys on relocation benefits and whether you have to pay it all back when you leave. And between survey responses, comments, and tips, we have a few thousand data points.

Today, we’re consolidating the three tables in one place, so that we can start filling in more blanks and squeezing out some nuances.

The table below now shows six things for each firm:

  * which bar exam expenses the firm will reimburse (send us tips to fill in the blanks),

  * whether the firm pays new associates a summer stipend or a signing bonus or graduation bonus (not counting clerkship bonuses, which are discussed elsewhere),

  * whether the firm provides salary advances (i.e., loans) in any particular amounts,

  * whether the firm provides any particular relocation benefits,

  * whether the firm provides a pro-rated bonus (a “stub bonus”) for the period between your start date and the end of the year first year, and

  * whether the firm will make you pay it all back if you leave. As a general rule, payback requirements will apply to everything but a stub bonus, and will include clerkship bonuses.

And now, that introduction aside, read on to see the aggregated table of bar reimbursements, stipends and bonuses, salary advances, moving expenses, stub bonuses, and payback requirements. Check it out, after the jump.

double red triangle arrows Continue reading “Featured Job Survey: Everything You Always Wanted To Know About Starting Bonuses But Were Afraid To Ask”

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Featured Job Survey: Bar Stipend Studies

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Over the past few months, we’ve devoted several of our ATL / Lateral Link survey posts to compensation issues like base salaries, bonus amounts, and clerkship bonuses. But we’ve received quite a few requests to do another survey or open thread on another compensation issue: starting bonuses and stipends.
Associates at four New York firms (anonymized) have recently e-mailed the same general question:

Next year top law firms in New York, as well as those around the country (Chicago, Los Angeles, etc.), will pay their incoming associates $160,000 plus a $10,000 STARTING BONUS. [My v5 firm], on the other hand, will pay incoming associates $160,000 with a $10,000 SALARY ADVANCE. Simply put, I will be going on a bar trip this summer with money I loaned myself from my first year salary! I find this very strange considering that [my firm] considers itself to be the cream of the crop in New York in terms of pay.

i’m wondering if you can post a thread on firms giving incoming associates stipends for the summer. i’m at a v5 nyc firm and just learned that they don’t offer a summer stipend but do allow an advance (up to 12k, i believe). some friends i know at peer firms mentioned that they’ll be receiving stipends (10k from what i hear) as opposed to advances. any assistance in shedding some light on this would be greatly appreciated. thanks.

I read your blog and I have a suggestion for a thread – the types of loan/stipend firms give to cover studying for the bar. I’ve heard that some firms give out-right cash bonuses, whereas others (including my Vault Top 5 firm) give a no-interest loan that you must then repay over your first year. Since these amounts are usually around $10,000, it can make a not insignificant difference in first year compensation.

Thought you might want to run a story on advances/stipends offered by law firms for incoming associates. I’m an incoming associate at [big prestigious firm], and was frustrated when I heard that most other top law firms pay a stipend of $10,000 to their associates for the summer of the bar, while [big prestigious firm] is offering only a “$3,000 signing bonus” and a 7k loan, which will be deducted from our first 6 months of salary.
I know several other incoming associates who are surprised to see [big prestigious firm] below market, but are afraid to communicate this to the firm.

About a year ago, when ATL previously posted an open thread on the subject, commenters suggested that firms in New York were more likely than non-NY firms to pay stub bonuses (first year bonuses pro-rated for the number of months worked), which made up for the lack of a signing bonus. But is that true today?
Today’s ATL / Lateral Link survey will probe your firm’s policy on signing bonuses and salary advances. Feel free to speak up in the comments, too. Or send us information by email. If we get enough responses, we’ll put together a table like the clerkship, maternity, and paternity leave tables (each of which will be updated this weekend, by the way, so feel free to send tips about those as well).
Update: This survey is now closed. Click here for the results.
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Justin Bernold is a Director at Lateral Link, the sponsor of this survey.

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What’s Up at Milbank Tweed?
(Parental leave, for one thing.)

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Milbank Tweed Hadley McCloy AboveTheLaw Above the Law blog.jpgDespite the recent turmoil in the economy and the stock market, all appears to be well at Milbank Tweed Hadley McCloy. A tipster provided us with the highlights of chairman Mel Immergut’s “State of the Firm” address from last week:

1. Primary caregiver leave is now 18 weeks paid.

2. Blackberries will get replaced every two years instead of three.

3. “We’re not getting fired.”

It appears that Milbank has effectively made a “no layoffs” promise. It learned that lesson the hard way:

Mel stressed that in the last downturn, they had slowed hiring, and then found themselves at a loss for mid-level associates when things picked up later. So the plan is to continue to hire new people (our summer program is the largest to date at 100+) and retain, but not really hire laterals.

Will other firms make a similar pledge? We’ll see.

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Biglaw Perk Watch: Open Thread on Car and Dinner Policies

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lincoln town car dewey leboeuf above the law blog.jpgLast week, our colleagues over at Dealbreaker reported on changes to the “Evening Meals and Taxis” policy of Goldman Sachs in London. The upshot: the firm’s dining@mydesk service — okay, that doesn’t sound fun, but it’s still a perk of sorts — and a GS-covered taxi home will kick in at 10 PM instead of 9 PM, the old cutoff. Memo here.
Similar changes to car and dinner policies appear to be happening on this side of the pond. For example, we hear through the grapevine that Mayer Brown’s New York office recently pushed the free-car cutoff back to 9:30 PM.
At your law firm, when do you get a free dinner and / or transportation home? Has the firm changed its policy recently? Any thoughts on what the cutoff ought to be? Some firms have deadlines that vary by season. E.g., Debevoise (9 p.m. during the summer).
Please weigh in, on these and related matters — e.g., stories about crazy and/or incompetent car service drivers — in the comments.
Update: According to this comment, “MBRM has always moved cars back to 9:30 once the clocks change.”
Unacceptable [Dealbreaker]

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