Associate Bonus Watch 2008, Bonuses, Money, Skaddenfreude

Associate Bonus Watch: Simpson Announces Bonuses ... And You're Not Going To Be Happy

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“Not God Bless America, God-damn America.”

We are now able to report that Simpson Thacher & Bartlett has matched bonuses with Half-Skadden:

On behalf of the partners of the Firm, I would like to announce that year-end bonuses for associates in good standing will be as follows:

Class of 2008: $17,500 (pro-rated)

Class of 2007: $17,500

Class of 2006: $20,000

Class of 2005: $22,500

Class of 2004: $25,000

Class of 2003: $27,500

Class of 2002: $30,000

Class of 2001: $32,500

Class of 2000: $32,500

Cravath has doomed us all.

After the jump, more analysis and the full STB memo.


In a time where the market could go either way, we must now fear that top firms will race to the floor set by Cravath. While this will be great for Skadden associates and Skadden recruiters, the rest of the cream must be crestfallen.

Simpson, you’ll notice, didn’t even bother to explain themselves like Cravath did:

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Bonuses for counsel and other attorneys will be determined on an individual basis and communicated separately. Bonuses will be paid on December 30, 2008. Associates and counsel who were on leave or worked part-time during any part of this year will be eligible for a pro-rated bonus. These bonuses are less than the amounts paid in 2007, reflecting the current challenging business environment.

On behalf of the Firm, thank you for your dedication and professionalism.

Pete Ruegger

“Dedication.” They can’t be serious. The vast majority of associates are “dedicated” to making as much money as possible. I can’t imagine that this is the “thanks” they were looking for.

This is going to get worse before it gets better.

Update (6:11 PM): A couple of things are worth pointing out as we all digest this terrible news.

First of all, not too long ago many were singing Simpson’s praises as they were chosen as lead counsel on the $700 billion bailout plan. Now they’re paying below-market bonuses, and the bailout is being viewed as a massive failure. Not good times over at Skadden-Mart (f/k/a STB).

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But you should also remember that just last month Simpson sent around a glowing letter to their 2009 summer associate class:

There have been many exciting recent developments here since you left and I wanted to send news of what is going on. The firm is at the very center of the developments that are reshaping the financial world and when you return there should be some fascinating work awaiting.

Prestigious name? Check. Fascinating work? Check. Associate pay commensurate with other top firms? Not so much.

Shouldn’t NALP authorize any Half-Skadden or Skadden-Mart summer to go to Skadden instead if the one true elite law firm (at this point) will take them back? Seems only fair.

Read the full Simpson memo below.

SIMPSON THACHER BARTLETT — MEMO — ASSOCIATE BONUSES

MEMORANDUM TO ALL ASSOCIATES AND COUNSEL

On behalf of the partners of the Firm, I would like to announce that year-end bonuses for associates in good standing will be as follows:

Class of 2008: $17,500 (pro-rated)

Class of 2007: $17,500

Class of 2006: $20,000

Class of 2005: $22,500

Class of 2004: $25,000

Class of 2003: $27,500

Class of 2002: $30,000

Class of 2001: $32,500

Class of 2000: $32,500

Bonuses for counsel and other attorneys will be determined on an individual basis and communicated separately. Bonuses will be paid on December 30, 2008. Associates and counsel who were on leave or worked part-time during any part of this year will be eligible for a pro-rated bonus. These bonuses are less than the amounts paid in 2007, reflecting the current challenging business environment.

On behalf of the Firm, thank you for your dedication and professionalism.

Pete Ruegger

Earlier: Associate Bonus Watch: Here Comes Skadden

Associate Bonus Watch: Cravath Offers Less Than Skadden

A Happy Letter From Simpson Thacher

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