Are we breaking the back of the recession? Today, we have news that Hughes Hubbard is making raises that put will put its associates back to pre-salary freeze levels. Here’s the salary information from the firm-wide memo:
ANNUAL SALARIES
In recognition of those efforts, we will be implementing raises in annual salaries in all offices retroactive to January 1, 2010. For all associates who perform up to expectations, the salaries in the New York, New Jersey and Washington, D.C. offices will be set at the levels listed below; salaries in our Los Angeles and Miami offices will be adjusted on a case-by-case basis.
Class Year Salary
2009 $160,000
2008 $170,000
2007 $185,000
2006 $210,000
2005 $230,000
2004 $240,000
2003 $250,000
2002 $265,000
2001 $275,000
2000 and above $280,000
If you check out our salary thaw chart, you’ll see that this is a true-up raise. Hughes Hubbard is back to paying associate salaries at the top of the market.
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CORRECTION: HHR is at market for the first five years, but senior associates should be earning more, as noted by this commenter: “Market salaries should be: 2004 = $250K (not $240K); 2003 = $265K (not $250K); 2002 = $280K (not $265).”
After the jump, there’s good news — plus a CORRECTION — on bonuses.
Hughes Hubbard has historically had a complicated, multi-tier structure for its year end bonus. The minimum hours requirement for bonus eligibility is 1950 hours. But Hughes Hubbard associates who were high on hours had the opportunity to beat the market bonus.
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CORRECTION: Bonuses for this year are above-market, perhaps reflecting a return of salary that Hughes Hubbard associates lost while the firm’s compensation scale was frozen in place:
for bonuses being paid now for 2009, 1950 for a first year gets 17,500, 2100 gets 35k etc.
over 50% of associates are getting bonuses, and i know several who are getting big ones.
For next year — i.e., bonuses for the 2010 year performance — the bonus levels are lowered to what was market for 2009:
for this coming year (bonuses paid January 2011), they’ve lowered the bonus numbers in accordance with the market, so they don’t “overpay” associates.
essentially they follow the cravath scale at Tier 1 (need 1950 hours including pro bono), then add a little for more hours (2100, 2300, and 2500). for example, a 2009 class associate can make $7,500 for 1950, $15,000 for 2100, $30k for 2300 and $45k for 2500.
It’s early, but 2010 is shaping up to be a very interesting year. While some Biglaw firms are still laying people off, others — like Hughes Hubbard — are staging comebacks.
Stay tuned, we aren’t even finished with January.
Earlier: Associate Bonus Watch: ‘Mother (Hughes) Hubbard’ Does Better Than Last Year