We’re still catching up on bonus news that broke over the holidays. Remember, if we missed your firm, please let us know at [email protected].
Just after Christmas, Dechert announced its 2011 end-of-year bonuses. I guess you’d call it a “match” of the Cleary Gottlieb scale. Dechert is paying a pro-rated bonus to first-year associates and has a top payment of $42,500 for very senior associates.
But Dechert isn’t a lockstep firm. You have to meet a requirement in order to get the bonus. That requirement looks very much like an hours requirement, but Dechert doesn’t want you (or its clients) to think that they have an hours requirement — so they have some kind of nebulous performance requirement that can most easily be defined with reference to hours.
Oh, and they’ll dock you if you didn’t input your time, on time, throughout the year….
As we recently mentioned, our view is “better late than never” when it comes to bonus news. With this in mind, we are pleased to bring you the bonus announcement of Willkie Farr — which came out in December.
Given Willkie Farr’s status as a top New York law firm, you can probably guess what they did in terms of bonuses….
The pace of announcements may have slowed down a bit, but make no mistake: we’re still in associate bonus season. If you have bonus news that we haven’t covered, even announcements dating back to last month, please email us (subject line: “[Firm Name] Bonus Memo”). We’re trying to keep as accurate a record as we can of Biglawbonuses, but we can’t do it without your help. Please don’t assume that someone else will send in the memo; that’s not always the case.
Now, on to today’s bonus news, which comes to us from Kasowitz Benson. The litigation powerhouse, which describes itself as “a national law firm primarily focusing on complex and sophisticated commercial litigation, numbering 375 lawyers,” announced its bonuses last Thursday, January 5.
As we get back to our regularly scheduled programming, it’s pretty obvious that bonus season has gotten a little bit ragged. This is what happens when the overdog, Cravath, fails to set bonuses at reasonable levels: firms get confused and try to do things to make it look like they’re clearing the ridiculously low bar Cravath has set. There are so many firms now with some kind of performance or hours mark that will allow at least one of their associates to say, “I made more this year than if I was working at Cravath.”
And that’s just the firms that have announced already. Other firms seem to be waiting to make their “year-end” bonus announcement because they don’t want to have to go back and dole out more money once somebody gets around to announcing spring bonuses. While it might be fun for Cravath and Sullivan & Cromwell to play chicken over who will announce spring bonuses first, there are a whole bunch of firms that are just sitting around waiting to find out how much they are going to have to pay.
And there are a bunch of associates who are starting to wonder if they’ll be getting any kind of bonus at all.
So who did we miss? Who still owes you a bonus announcement?
In our recent post on the top 10 most generous large law firms — based on analysis by ATL’s new director of research, Brian Dalton — the firm of Hogan Lovells placed second. Under the rankings, this meant that Hogan partners are taking the second-biggest hit to their own bottom lines in order to keep their associates happy and well-compensated.
But is this still the case today? Based on what we’re hearing about the most recent Hogan bonuses, announced shortly before Christmas, one wonders whether the Ho-Love partners have turned from Santas into Scrooges….
Earlier this week, Kirkland & Ellis associates started receiving phone calls about their bonuses. Many associates are reporting that their bonuses “shattered the market.” In the words of one K&E source, “It is mad money. Huge year for everyone here.”
It’s important to note that Kirkland has a “black box” bonus structure, in which the payouts are highly individualized and based on performance and hours. Every year, there are some winners and losers.
Right now we’re hearing a lot of chatter from K&E winners. Many are reporting bonuses that are significantly higher than Cravath — which really isn’t hard to do, given how terribly low the Cravath bonuses are this year (so low that partners at other firms are thanking their Cravath counterparts). More to the point, we’ve got K&E people saying they made more than they would have at Quinn Emanuel (which is impressive!).
But, there’s a catch. While some firms like Sullivan & Cromwell anticipate paying spring bonuses, some of our Kirkland friends are telling us that this bonus is inclusive of a spring payout. So K&E might not pay a spring bonus, even if other firms do…
In the world of Biglaw, the subject of bonuses is a hot-button issue. People will disagree, often vehemently, on whether the bonuses paid by a particular firm are generous or cheap. To paraphrase an old joke, if you ask two people about bonuses, you’ll get three opinions.
Given these frequent differences of opinion, whenever we publish an Associate Bonus Watch post, we’re eager to get opinions and additional information from you, our readers. As you can see from looking back at our prior bonus coverage, we often update our bonus posts to add new information or another point of view. You can send us reactions to your firm’s bonuses — or news of bonuses we have not yet covered — by email or by text message (646-820-8477 / 646-820-TIPS).
The evolution of relationships between the genders continues. Currently, in law firms, there is an interesting conundrum; balancing the desire for a gender-blind workplace where “the best lawyer gets the work and advances” and the reality of navigating the complicated maze created by the fact that, in general, men and women do possess differences in their work styles. These variations impact who they work with, how they work, how they build professional connections and how organizations ultimately leverage, reward and recognize the talents of all.
Henry Ford sat on his workbench and sighed. A year earlier, he had personally built 13,000 Model Ts with his own hands. Fashioning lugnuts and tie rods by hand, Ford was loath to ask for help. Sure, there were things about the car that he didn’t quite understand. This explains the lack of reliable navigation systems in the Model T. But Ford persevered because he knew that unless he did everything, he could not reliably call these cars his own.
“Unless my own personal toil is responsible for it, it may as well be called a Hyundai,” Ford remarked at the time.
The preceding may sound unfamiliar because it is categorically untrue. And also monumentally stupid. Henry Ford didn’t build all those cars by hand. He had help and plenty of it. Almost exactly one hundred years ago, Henry Ford opened up the most technologically advanced assembly line the world had ever seen. Built on the premise that work can be chopped up into digestible pieces and completed by many men better than one, the line ushered in an age of unparalleled productivity.
Today, an attorney refers business because he can’t do everything the client asks of him.
There are three reasons why this is way dumber than a made-up Henry Ford story…
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months, and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.