HOGAN LOVELLS — ADDITIONAL REACTIONS TO 2014 BONUSES IN NEW YORK
Hogan Lovells NY announced bonuses. No official letter on the breakdown but it looks like if you billed between 2000 and 2099 you got last year’s market bonus. If you billed 2100 and up, you got this year’s bonus. And I believe if you hit 2400 or 2500 you got an additional sum above the market. A lot of people are angry and very disappointed as you can imagine.
AI Is Reshaping Legal Practice—But Tools Aren’t The Real Differentiator.
Explore the mindset, cultural shifts, and training strategies that define the AI‑savvy lawyer, revealing why human judgment, standardized competence, and integrated learning—not technology alone—will shape the future of the profession.
The bonus memo that went out at the end of last year indicated that in order to qualify for a bonus, associates had to bill 2,000 hours (standard). When bonuses were announced on Friday (in the later part of the afternoon, at least in New York) via individualized memos, several associates noticed that their 2,000 hours did in fact entitle them to a bonus … LAST YEAR’S!!!! What has been deduced (by associates speaking with each other and occasional nugget of information from partners who were actually around on Friday and willing to discuss this) is that 2,000 hours certainly entitles one to a bonus (see, they didn’t lie!), but it is actually 2,100 hours that is required for a market bonus. It is unclear whether their estimation of a market bonus is Simpson or DPW scale. As a small consolation, it has been determined that associates who bill over 2,400 get above-market bonuses. There are a number of associates who fall into this 2,000-2,100 band, including several laterals who were promised that the firm pays market bonuses with a 2,000-hour requirement and who are probably regretting their life decisions right about now.
The aggravation (believe it or not, there is aggravation!) is really more directed at the lack of openness about the policy and that the rules were changed without any notice. If you want to set the number at 2,100 hours, or 2,500 hours or any number of hours, then set it and let the associates know. The actions of the partnership seem very cowardly and disrespectful to associates.
Can you imagine the fury? Can you imagine the damage this will do to (the already anemic) summer associate and lateral recruiting? Can you imagine the defections? Well, if you can’t, don’t worry about it because you’ll probably see it all in 2015.
Opus 2 Steps Up Its AI Game With Acquisition Of A Legal Tech Startup
With the addition of Uncover’s technology, the litigation software is delivering rapid innovation.
I know Hogan Lovells isn’t comparable with the Davis Polks and Simpsons of Biglaw, but potential laterals and law students should know that the party line — which has always been that HL pays market for NY associates who meet the firm’s billable hour requirement — is simply not true. HL associates who met the firm’s billable hour requirement of 2,000 hours and who were in more than good standing with the firm received less that half of market this year.
SHEPPARD MULLIN RICHTER & HAMPTON LLP — MEMORANDUM — 2014 BONUSES
SHEPPARD MULLIN RICHTER & HAMPTON LLP — ADDITIONAL REACTIONS TO 2014 BONUSES
Bonus news: Sheppard Mullin has confirmed that they will be paying out sh**ty bonuses because the “market has yet to fully develop among west coast firms.” Top bonus of $37,500 for your most-senior associate with over 2100 hours for the year. Needless to say, what a joke! We wish we had Sidley bonuses. LOL.
Apparently, because SMRH does not consider any of the firms already announced as “peer” firms, it is simply sticking with last year’s bonus schedule. Any California firms coming out of the block with announcements?
Sheppard Mullin will continue following the 2011 Cravath bonus scale in 2014. Associates are particularly disappointed in this development in light of consistently increasing billing rates for Associates at each level of seniority and, as Associates speculate to be the case, a naturally accompanying rise in per-partner profits.
Attached is the firm’s 2014 bonus memo, which was apparently posted on the firm Intranet without an announcement some months ago. Today, the partnership confirmed that it would not be following the recent bonus increases this year, but would be willing to hear Associates out in January on how the firm’s non-NY “peer firms” on the West Coast compensated their Associates. The firm has never identified a group of so-called peer firms, even though Associates have been asking it to do that for years, so this promise is wrapped in a black box that perhaps only the likes of Above the Law can unwrap.
Sheppard Mullin Associates feel fortunate to be gainfully employed this holiday season, but many are disappointed that the firm has chosen for several years not to let any improved financial performance trickle down the ranks.
Sheppard Mullin bonuses. Terrible. By class year (keep in mind a significant chunk of people don’t get promoted every year): 7500, 10k, 15k, 20k, 25k, 30k, 37500, 37500. That’s for 2100 hours. If you only hit 1950 (the official hours target) you only get 2/3 of that scale. Some merit bonuses, but historically trivial. The firm says it may revisit the bonus amount in the coming months.
Sheppard Mullin has announced its bonus structure for 2014. The firm is substantially under market…. [Inserts memo.]
These pitiful amounts aren’t even lockstep. You get 2/3 of the amount for 1,950 hours and the full amount at 2,100 hours. Everyone is very, very upset. We feel undervalued and many of my colleagues will be looking to leave in the New Year. This is a system where, simply stated, the partners have completely ignored the prevailing market forces. Our bonuses aren’t even in the same league as Gibson and Kirkland. What a shame.
BRYAN CAVE — MEMORANDUM — 2014 BONUSES
IRELL & MANELLA — ANALYSIS OF BONUSES BY AN ASSOCIATE
I think there is a larger issue going on very similar to what is happening at Kirkland & Ellis. Irell used to pay a multiple of Cravath, but that has been in consistent decline for the past 3 or so years. Meanwhile, PPP is off-the-charts and revenue per lawyer as well (according to our managing partner, RPL was just shy of $1.5M this year, up from last year’s paltry $1.4M). We have some of the highest rates in the country and don’t even have firm-issued phones!
All things considered, Irell isn’t a bad place to work for Biglaw. But they sell themselves as paying above market and consider themselves piers with other smaller lit firms – Boies, Susman, etc. But we don’t pay anywhere close to that. Like K&E, we’re becoming a “Cravath+.” My feeling from the bonuses this year is that it gives the partnership room to just match market when we don’t have a “good year,” now that the good year bonus has been introduced. No more multiple of market. It’s insulting and reflects the partnership’s increasing greediness over the last several years.
As usual, no memo – just a meeting with the managing partner where he gets to tell us how we are the best in the country while insulting our intelligence with these bonuses.
SCHULTE ROTH & ZABEL — MEMORANDUM — 2014 BONUSES
PROSKAUER ROSE — MEMORANDUM — UPDATED 2014 BONUSES
SHEARMAN & STERLING — MEMORANDUM — UPDATED 2014 BONUSES
Further to the bonus announcement of November 25th, I am pleased to announce that we will be increasing the standard bonus for U.S. Track associates in the class years of 2011, 2010, 2009 and 2008 as set forth below:
Class of 2011 – $50,000
Class of 2010 – $65,000
Class of 2009 – $80,000
Class of 2008 – $90,000
As in prior years, individual bonus amounts will be discretionary, based on performance. Associates will be notified by their Practice Group of their individual bonus payments.
Bonuses will be paid on January 15, 2015 to U.S. Track associates who are actively employed at the firm on that date, and in good standing. For those associates who were on leaves of absence or reduced work schedules in 2014 or who joined the firm after January 1, 2014, bonuses will be prorated.
If you have any questions about the bonus, please contact Gus Atiyah, Jessica Delbaum or Marcus Franks.
Dave
David J. Beveridge
____________________________________
Shearman & Sterling LLP
599 Lexington Avenue
New York, NY 10022