We’ve seen a few themes emerge from this current Biglaw bonus season. One is New York holding the line on bonuses — perhaps saving up for an increase to base salaries next year (hope springs eternal in the debt-laden associate’s breast). A second is “the year of atonement,” in terms of firms that disappointed associates in 2014 making nice in 2015. A third is “Small Is Beautiful” — litigation boutiques like Susman Godfrey, Tensegrity Law Group, and Desmarais LLP paying bonuses well above Biglaw levels.
This latest bonus story can also be filed under “Small Is Beautiful.” Back in January, we wrote about a few dozen lawyers leaving Irell & Manella to start a new litigation boutique, Hueston Hennigan, under the leadership of John Hueston and Brian Hennigan.
Hueston Hennigan, which now boasts some 40 lawyers, is about to complete its first year in operation — and as one happy tipster puts it, “This firm kicks ass.” The firm’s success is reflected in its generous bonuses:
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Our bonuses were handed out [last week]. They are excellent. Everyone who billed at least 2k hours got an above market bonus in three tiers: 10% above market, 30% above market, or 50% above market. Associates were slotted into tiers based on quantitative facts (hours billed) and qualitative assessment (efficiency of work, creativity, value to the firm). For instance, I got [an above-market bonus] despite barely hitting 2k hours.
Also, EVERYONE got bonuses. Even people who billed well below 2k (there were only [a handful]) got a bonus….
Finally, the firm also contributed 3+% of everyone’s base salary to their 401k as an added bonus.
The Cravath-scale amounts for fourth-, fifth-, and sixth-year associates are $65,000, $80,000, and $90,000, respectively. At Hueston Henigan, we’ve heard of fourth-year associates approaching or even breaking $100,000 (counting the 401k contribution), and sixth-year associates getting well over $100,000.
“The bonuses reflect a percentage of revenues of the firm,” a tipster told us. “The partners pitched the firm as ‘profit sharing’ for associates, and these bonuses certainly reflect that. It’s been an amazing first year.”
So here’s what inquiring minds want to know: what about bonuses back at Irell & Manella? Last year, some I&M associates found them disappointing. Will that hold true again this year, or is Irell also participating in the year of atonement?
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P.S. In case you’re wondering — I was, so I called up the firm and chatted about it with the receptionist — “Hueston” in “Hueston Hennigan” is pronounced like “Houston,” the city (not “Westin,” the hotel chain).
UPDATE (4:35 p.m.): One source claims that enthusiasm about the bonuses isn’t shared by all. According to this tipster, the bonuses should have been even bigger, given the risk that many associates assumed in leaving Irell and the strong year that Hueston Hennigan partners keep saying the firm enjoyed.
UPDATE (11:00 p.m.): A dissent from the dissent: “My observation is that people are thrilled with bonuses across the board — not sure the one outlier comment represents the whole.”
UPDATE (12/28/2015, 9:50 a.m.): Another tipster who’s happy about their bonus: “Everyone is very pleased and glad to see the partners stuck to their word about profit-sharing.”