On Friday we noted that Gibson Dunn associates can read. Today it looks like management at Gibson Dunn finally acknowledged the writing on the wall. After a year of record-setting profits, Gibson Dunn finally decided to match the spring bonus market. The firm will be paying Cravath-level spring bonuses to eligible associates, on April 29.
Welcome to the club, Gibson Dunn. Just think, Sidley Austin, this is going to be you in a couple of weeks, when you finally realize that the cost of being viewed as a cheap firm that doesn’t pay market compensation to its associates far outweighs whatever profits you’re hoarding by hanging on to the extra money it would cost to award spring bonuses.
Obviously, our Gibson tipsters feel vindicated, now that GDC finally matched the market…
Should they have been even better, though? Not everyone at 51 West 52nd Street was thrilled about the 2010 payouts (even though Wachtell associate bonuses still exceed those at almost every other firm).
Let’s take a look at what WLRK doled out last year….
Every day that major law firms do not announce spring bonuses makes them look like below-market, “non-peer” institutions. It has become very clear that firms claiming to pay market compensation need to be providing spring bonuses.
The latest firm to yield to market realities is Hogan Lovells. The relatively new Ho-Love, formed by the merger of Hogan & Hartson and Lovells, showed love to its hos on Friday. The firm matched the Cravath scale for spring bonuses.
You can read the full memo below. But you should also listen to how surprised and happy Ho-Love associates are about the bonuses. Hogan associates are like bizzaro Sidley associates….
Well, Gibson Dunn, it’s come to this. You’ve made your associates so desperate and confused that they don’t know where the sun even rises anymore.
They want a spring bonus. They’ve read about spring bonuses at Latham and O’Melveny and think that they should be making as much as their colleagues at peer firms. Gibson Dunn may not like it, but their associates can read. They can read not just about the bonuses at peer firms, they can also read about Gibson Dunn’s record-setting profits for 2010.
And you know how it goes: “Record setting profits with below market bonuses makes Jack a dull boy.”
Well, now news is trickling out that Gibson will finally be getting into the spring bonus market. Except even if that’s true, it could be that GDC associates in California are left out in the cold. Some of our tipsters report that only New York associates will get a spring bonus.
In its recent obituary for Warren Christopher, former U.S. Secretary of State and former senior partner at O’Melveny & Myers, the New York Times referred to O’Melveny as “the most traditional and prestigious of Los Angeles law firms.”
Well, if you want to be one of the “most prestigious” Los Angeles law firms — or national or global law firms, to the extent that O’Melveny has outgrown L.A. — then you need to pay your people appropriately. So perhaps it shouldn’t come as a shock to learn that OMM has announced spring bonuses.
We received confirmation and details of the O’Melveny spring bonuses from multiple sources. Amusingly enough, about half of our sources on this story are anxious associates at Gibson Dunn….
It’s nice when law firms listen. Last week we highlighted a few firms that had been slow to pull the spring bonus trigger. It would seem that these firms have received the message that their own people were paying attention to spring bonuses at peer firms.
On Friday, Latham & Watkins announced that it would be paying spring bonuses. Later in the day, Ropes & Gray followed suit.
Today, Kirkland & Ellis announced that it also will be making spring bonus payments. Welcome, K&E associates; there is pie and punch in the corner.
We’ll let you know if Quinn Emanuel comes to the party, but let’s first check out what Kirkland is rolling in with…
The latest firm to share the wealth with its associates is Ropes & Gray. The spring bonus news is much cheerier than the Ropes news from earlier today (although note the updates appended to that post, highlighting comments skeptical of plaintiff Patricia Martone’s claims).
So, yes, the Ropes springtime bonuses. The scale being used has the Cravath numbers on it, but there are some caveats and qualifiers.
In terms of overall bonus compensation, some R&G associates will do better than their Cravath counterparts, and some will do worse….
I’ve been trying to be nice. I’ve been trying to be positive. I’ve been trying to adopt a new, sunny, smoke-free attitude that assumes certain top firms will do the right thing by their associates and announce spring bonuses along the lines of Cravath, Sullivan & Cromwell, and a bunch of other top-tier firms.
Just last week, we reminded firms that it’s not too late to announce “spring” bonuses. Dewey & LeBoeuf announced spring bonuses that it will pay in the summer. And that’s okay, nobody is really complaining, associates just want their money. If top firms are paying out spring bonuses, associates who have been told they are working at a top firm want to see their cut.
But there are a number of firms that haven’t gotten the message. Did they think their own people wouldn’t notice that they are getting shortchanged compared to the market? Is this a way for those firms to force some attrition? Surprisingly, some of the firms that are being cheap with spring bonuses were lauded for being generous around Christmastime.
Those firms know how the internet works, don’t they? Information can be updated around these parts….
This week, Seyfarth Shaw announced the arrival of two construction litigators from Howrey, David Mancini and James Newland Jr. The two partners have been on the Seyfarth website for a while, as we noted last week, but Seyfarth made it official on Monday with a press release.
The other big news this week at Seyfarth: payment of bonuses. Alas, this news isn’t being as warmly received as the Howrey partners.
“Very individualized and below market as usual,” said one source. “No mention of spring bonuses either.”
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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 seven years. You can reach them by email: email@example.com.
Please note that Evan Jowers and Robert Kinney are still in Hong Kong and will stay FOR THE REMAINDER OF THIS WEEK. We still have a handful of available slots for meetings with our Asia Chronicles fans. If we have not been in touch lately, reach out and let us know when we could meet! There is no need for an agenda at all. Most of our in-person meetings on these trips are with folks who understand that improving a legal practice through lateral hiring is an information-driven process that takes time to handle correctly.
Regarding trends in lateral US associate hiring in Hong Kong, we of course keep much of what we know off of this blog. Based on placement revenue, though, Kinney is having one of our most successful years ever in Asia. We are helping a number of our law firm clients with M&A, fund formation, cap markets, project finance, FCPA and disputes openings. These are very specific needs in many cases, so a conversation with us before jumping in may be helpful. As always, we like to be sure to get the maximum number of interviews per submission, using a well-informed, highly targeted, and selective approach, taking into account short, medium and long-term career aims.
Making a well informed decision during a job search is easier said than done – the information we provide comes from 10 years of being the market leader in US attorney placements at the top tier firms in Asia. There is no substitute for having known a hiring partner since he/she was an associate or for having helped a partner grow his or her practice from zip to zooming, and this is happily where we stand today – with years of background information on just about every relevant person in all the markets we serve, and most especially in Hong Kong/China/Greater Asia. So get in touch and get a download from us this week if we can fit it in, or soon in any case!