Bonus Season Comes Early! (And It's Not Cravath -- It's Simpson)
We have our first Biglaw bonus announcement, courtesy of Simpson Thacher. Let the games begin!
This is a nice little pre-Thanksgiving gift. Simpson Thacher shocked its associates this morning by announcing this year’s bonuses. Typically, bonus season kicks off in the first week of December when Cravath announces its bonuses and every other firm dutifully matches its CSM overlords. Not this year. Perhaps STB read Elie’s post last year lamenting the fact that Simpson had become a Cravath lemming (after being a compensation leader a few years before). Whatever happened, STB decided to jump the gun and become a leader in associate compensation again.
If the rest of the market follows Simpson Thacher, then associates are going to be very happy. Here are the 2014 year-end bonuses!
Class of 2014 $15,000 (prorated)
Class of 2013 $15,000
Class of 2012 $25,000
Class of 2011 $40,000
Class of 2010 $55,000
Class of 2009 $70,000
Class of 2008 $85,000
Class of 2007 $100,000
Class of 2006 $100,000
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That’s not bad at all. By way of comparison, the bonus schedule is up significantly over what it was last year.
Class of 2013 $10,000 (pro-rated)
Class of 2012 $10,000
Class of 2011 $14,000
Class of 2010 $20,000
Class of 2009 $27,000
Class of 2008 $34,000
Class of 2007 $40,000
Class of 2006 $50,000
Class of 2005 $60,000
Can’t complain about bonuses like these. And, indeed, no one seems to be. Here’s a sampling of tips we’ve gotten this morning:
Bonuses just announced–essentially double what they were last year!! Excited to see Simpson taking the lead, and am very happy with this significant step up!
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And most succinctly:
I am shocked.
We’ve also been informed that the bonuses will be paid December 30th and only good standing is required to qualify. In other words, Simpson still hasn’t introduced any billable requirement.
Now we enter a dicey week where everyone (except Simpson associates) sweats out whether or not their firm will match (or exceed) Simpson. That’s not an idle concern either. Back in 2008, Skadden bucked tradition and announced big bonuses before Cravath and raised everyone’s expectations. Then Cravath revealed itself as the the Biglaw equivalent of Keyser Söze and looked over the faces of its associates and showed these men of will what will really was, boldly ignoring Skadden’s effort to dictate the market and giving its associates much lower bonuses. And, of course, everyone followed Cravath and gave out “half-Skadden” bonuses.
What do you think we’ll see this year?
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What will happen now that Simpson announced bonuses?
Loading ...Elie offers his thoughts on this news over at Redline.
Oh and if you’re interested in the full memo, it’s on the next page….
