We’re past Columbus Day, or as Daniel Snyder calls it, “Redskin Extermination Appreciation Day.” That means Biglaw bonus season is just around the corner.
Last year, Cravath kicked off bonus season late. They didn’t make an announcement until around Thanksgiving, the last Monday in November. But in the past few years, Cravath has announced as early as the first Monday in November. So bonuses should be here soon and might be here in a couple of weeks.
Will they be good? The difference between a good bonus and a crappy bonus has a lot to do with your expectations. What are yours?
As we recently mentioned, 2012 was a banner year for O’Melveny & Myers, in terms of legal work performed and the resulting financial rewards. According to Am Law, “the firm set new records in profits per partner and revenue per lawyer, with the former surging 19.4 percent, to $2.06 million, and the latter rising nearly 10 percent, to $1.1 million.”
O’Melveny’s gross revenue grew by 5.1 percent, to $818.5 million. It’s great to see a law firm with top-line growth. Many firms these days can’t grow total revenue or revenue per lawyer; they just try to cut expenses, resorting to layoffs and similar tactics, to improve profits per partner.
Did OMM’s improved PPP trickle down to associates, in the form of bonuses? Here’s what sources report….
We’re in the middle of what we previously referred to as the second wave of law firm bonus announcements. Later today, for example, we’ll write about the Latham & Watkins announcement from yesterday. (So far we’re hearing mixed things; if you’re at Latham and would like to opine on the bonuses, feel free to email us or text us (646-820-8477).)
Right now we’re going to discuss the bonuses announced at Goodwin Procter (which actually just hired a partner, Brynn Peltz, away from Latham). The Goodwin bonus announcement came out on Tuesday of this week.
So what do 2012 bonuses at Goodwin Procter look like?
Law firm bonus announcements come in two waves. In November and December, the New York-centric firms announce their bonuses (after taking their cue from Cravath). In January and February, the West Coast and also nationally oriented firms announce their bonuses for the prior year.
So the 2012 bonus season isn’t over, even though we’re now two weeks into 2013. Yesterday, for example, brought bonus news from Orrick, Herrington & Sutcliffe.
Orrick is a leader is the brave new world of “merit-based compensation.” What are they up to now?
Yesterday, we talked about the Quinn Emanuel bonuses. Many associates were angry, especially those who had billed a lot of hours in 2012. For some of those top billers, their bonuses were smaller than the same amount of work was worth last year.
Well, advocate and thou shalt receive. Quinn Emanuel just sent around a memo announcing that it will be increasing the top-end payments, to bring them in line with last year…
Partners: Alright you associates, ready to get happy about bonuses?
Quinn Associate: I’d say we are.
Cravath Associate: Yeah, let’s sing it now!
Partners: Okay, Kirkland?
Kirkland Associate: Okay!
Partners: Okay, Cravath?
Cravath Associate: Okay!
Partners: Okay Quinn? … Quinn? … QUINN EMANUEL!!!
Quinn Associate: OKAY!!
Yes, the Chipmunk Christmas Song is the perfect holiday analogy for Biglaw bonus season this year. And not just because Biglaw associates do work that talking chipmunks could accomplish [zing]. I’m looking at associate reactions from all these firms, and it just seems like expectations are playing a much larger role than the actual dollar amounts.
And then you have Quinn associates, playing Alvin, the diva. Their bonuses came out just before Christmas, and they seem really angry about this situation. Even though most of them are making more than Cravath.
We’re tempted to do what we proposed last year regarding Sidley Austin bonuses, by simply writing: “Sidley bonuses are out. The scale is not transparent, so some people may be happy with their bonuses and others may be unhappy. Here is an open thread for you to discuss. Thank you.”
That would at least spare us from some of the criticism we’ve received for our coverage of the Sidley bonuses in recent years. In 2010, we initially wrote a very positive post, which we got criticized for by people who saw it as too positive. In 2011, we went in the other direction, reporting that Sidley’s bonuses drew yawns from associates — an assessment that drew flak for us from happy campers at Sidley (and there are many happy campers at the firm; it enjoys an A- rating from ATL readers who work there).
So we realize that covering the sensitive subject of Sidley bonuses is a bit like trying to reach a budget deal: you can’t make everyone happy, just varying degrees of unhappy. But we’ll give it our best shot….
Let’s not play around this year. Let’s not play the cute little game of waiting for Cravath to set the bonus market and then waiting for everybody to inevitably follow Cravath. Let’s not wait for a few outliers to “beat” Cravath while Cravath thinks about maybe doing spring bonuses.
Lower Manhattan is trying to dry off. New Jersey seemingly washed away. If Biglaw wants to help its own people, it’ll get money into their hands as quickly as possible. That’s what will help people in the Tri-State area recover as they clean up from the storm. Biglaw firms should announce (and pay) their bonuses, as soon as possible, so their associates can have some income certainty (and extra income) as they recover.
And Biglaw should end the miserly, recession-era trend of cutting or canceling staff bonuses. This year all the secretaries and paralegals who are being asked to come in and work under unreasonable circumstances should share in the massive profits generated by their firms.
Let’s not mess around. Get the bonuses, whatever they’re going to be, into the hands of the people who have earned them, so they can more easily manage their own personal disasters…
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.
We at Kinney Asia have made a number of FCPA / White Collar US associate placements in Hong Kong / China thus far in 2014. Most of such placements have been commercial litigation associates from major US markets, fluent in Mandarin, switching to FCPA / White Collar litigation. Some have already had FCPA experience, but those are difficult candidates for firms to find (this will change in coming years as US firms are now promoting FCPA / White Collar to their 2L summers who are fluent in Mandarin and have an interest in transferring to China at some point).
Legal Week quoted Kinney’s Head of Asia, Evan Jowers, extensively in the following relevant article here.
There is a new trend in the market, though, where mid-level transactional US associates, fluent in spoken Mandarin and written Chinese, are interviewing for and in some cases landing junior FCPA / White Collar spots in Hong Kong / China at very top tier US firms.
Ms. JD is hosting their 2nd annual cocktail benefit to raise money for the Global Education Fund. The event will be held on August 21, 2014 at 111 Minna in San Francisco. Our goal is to raise $20,000 to fund the legal educations of four dedicated law students in Uganda who count on our support to continue their studies at Makerere University during the 2014-15 academic year.
The Global Education Fund enable womens in developing countries to pursue legal educations who otherwise would not have access to further education. According to the World Bank, investment in education for girls has one of the highest rates of return to promote development. In Uganda, more than 45% of women over the age of 25 have no schooling at all, and men are more than twice as likely as women to have access to higher education. Together, we can work to end educational inequality. For more information about the program, please visit http://ms-jd.org/programs/global-education-fund/
When the LexisNexis Cloud Technology Survey results were reported earlier this year, it showed that attorneys were starting to peer less skeptically into the future, and slowly but surely leaning more toward all the benefits the law cloud has to offer.
Because let’s face it, plenty of attorneys are perhaps a bit too comfortable with their “system” of practice management, which may or may not include neon highlighters, sticky notes, dog-eared file folders, and a word processing program that was last updated when the term “raise the roof” was still de rigueur.