GOODWIN PROCTER — MEMORANDUM — 2011 BONUS PROGRAM AND 2012 COMPENSATION
On behalf of the firm and its partners, I would like to thank each of you for your contributions to the firm over the past year. Together, the firm had a hallmark year in 2011, notwithstanding the challenges that continue to be presented by the economy and today’s unpredictable business environment. This was due in no small part to your hard work and commitment.
This memo details the 2011 bonus determinations, describes the firm’s plans for 2012 base salaries, and provides an overview of bonus eligibility for 2012.
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2011 Bonus
For calendar year 2011, we continued our practice of awarding bonuses based on a combination of factors – legal excellence; the amount of time spent on billable, pro bono and legal advice to the firm; overall productivity and efficiency; and the nature of investment time.
Associates in good standing who met the 1,950 hour threshold during the fiscal year ending September 30, 2011 through billable work, pro bono work (up to 150 hours) and legal advice to the firm will receive bonuses.
The 2011 bonuses are determined by reference to the bonus scale listed below. Individual bonus awards in each class may be above or below these amounts based on an evaluation by ARC of the factors described above. About 37 percent of associates receiving bonuses will receive the amount listed below for their class, and about 33 percent will receive more than the amount listed below. As has been the case in the past, bonuses will be pro-rated for recent hires, leaves of absence and part-time schedules during calendar year 2011.
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Bonuses for professional track attorneys will be determined on an individual basis, rather than by reference to the bonus scale listed above.
Bonus determinations will be delivered individually to each associate and professional track attorney on January 20th. Bonuses will be paid by direct deposit on January 25th.
2012 U.S. Associate Base Compensation Levels
Our base salary scale for U.S.-based associates will remain the same as previously announced last summer. We will recognize and reward our salaried associates for their contributions through the class year bumps in base salary as listed below. The class year bumps will be effective January 1, 2012.
Base compensation for professional track attorneys will be determined on an individual basis.
Base salary adjustments will be communicated to each associate and professional track attorney on January 20th. Salary adjustments will be reflected in the January 25th monthly paycheck.
Bonus Eligibility for 2012
As always, quantitative and qualitative components will form the basis for bonus eligibility and awards. The 2012 bonus eligibility threshold for associates will continue to be 1,950 hours during the fiscal year. ARC will consider the following when determining whether an attorney has met the threshold.
· Billable hours (annualized)
· Pro bono hours (of which up to 150 unannualized hours will count toward reaching the threshold)
· Legal services on behalf of the firm (annualized)
As has been the case in the past, bonuses for associates and professional track attorneys will continue to be pro-rated for recent hires, leaves of absence and part-time schedules based on the calendar year.
Pro Bono and Investment (“91”) Time
The firm remains committed to the Pro Bono Institute Pledge of dedicating 3% to 5% of its annual billable hours to legal matters on behalf of people in poverty or to advance civil rights. Goodwin Procter believes that pro bono service is a shared contribution on the part of the firm and each individual attorney. As in 2011, the firm will credit up to 150 pro bono hours towards the 1,950 bonus eligibility threshold. Pro bono work in excess of 150 hours will continue to be considered by ARC when reviewing the quality of an attorney’s work.
The firm strongly encourages attorneys to expand their professional development through investment or “91” time, which includes involvement in marketing activities, knowledge management, practice area initiatives, training and firm committees. In 2012, ARC will continue to focus on the quality, not the quantity, of these efforts, although each associate should aim for at least 100 hours as a guideline. All attorneys are expected to invest their time in a way that challenges them professionally and contributes both to the firm and to their own development.
ARC will assess the quality of attorneys’ investment hours on that basis, but as in 2011, investment hours will not count toward the 1,950 bonus eligibility threshold or the quantitative aspect of the bonus.
Meetings
We recognize that you may have questions about the 2011 bonus program and/or the 2012 base salaries and bonus eligibility. We will convene two meetings (one for associates at 2:00 p.m. ET/11:00 a.m. PT and one for professional track attorneys at 3:00 p.m. ET/12:00 p.m. PT) on Thursday, January 19th to discuss these plans and answer any questions you may have. A calendar request will follow shortly.
If you would like to submit questions anonymously in advance of the meeting, please use our online survey by Wednesday, January 18th at midnight ET/9:00 p.m. PT. We will make every effort to address your questions. In the meantime, please do not hesitate to call me, Heidi Goldstein Shepherd, any ARC member or your Office, Department or Practice leaders, with any questions or comments.
Again, thank you for your hard work and many contributions to the firm.
— Scott A. Webster, chair, attorney review committee (ARC)