Biglaw, Bonuses, Fenwick & West, Money

Associate Bonus Watch: Mixed Reactions At A Silicon Valley Powerhouse

Some junior associates fared well, but midlevel and senior associates seem unhappy.

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With Cravath and the other Fab Five firms paying the same bonuses this year as last year — which I view as good news, and others do not — the most interesting stories of the 2015 Biglaw bonus season arguably have nothing to do with the major New York lockstep firms. For example, we’ve seen great bonuses out of some smaller and highly focused firms, like litigation powerhouse Susman Godfrey and tech-centric Gunderson Dettmer. (And we’re working on a few more stories about bonuses at boutiques; drop us a line if we haven’t covered your firm yet.)

Here’s another noteworthy theme: 2015 as the year of atonement. A few firms whose 2014 bonuses disappointed their associates, like Jenner & Block and Sidley Austin, are paying generous bonuses this year to compensate for last year.

But not every firm with weak 2014 bonuses is making it rain this year — which brings us to the bonus news we’re hearing out of Fenwick & West. The firm is once again in the finals of our law firm holiday card contest, but some associates complain of coal in their stockings.

Last year, we covered Fenwick bonuses in a story entitled Associate Bonus Watch: 5 Firms Foster Frustration. Associates complained of “pretty poor,” even “pathetic” bonuses, “even though the firm bragged about having a record year” in 2014.

This year, things seem better, but not universally so. It sounds like some junior associates, especially those with high hours or powerful partners in their corner, did fairly well. We received reports of some class of 2014 associates getting $25,000 bonuses (Cravath scale: $15,000) and some class of 2013 associates getting bonuses of $40,000 or more (Cravath scale: $25,000).

But not all junior associates beat the market. “The first years I’ve spoken to have received market or below market,” one tipster told us. “Very few of them are happy. But a few who barely made their minimum hours are happy because they weren’t expecting a bonus at all.”

And it sounds like discontent grew as one climbed the seniority ladder — where, of course, paying market bonuses gets more expensive (at least on a per-associate basis). Here’s what one midlevel told us (hours and bonus amounts made a bit fuzzy to preserve anonymity):

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Billed [more than 2100 hours]. Received below-market bonus despite good performance reviews. No reason given as to why I was not given a market bonus even though I billed above the minimum (1950). Not happy and I’m considering exit options now to leave this s**thole.

Everyone is miserable. We only seem to attract bad press these days (bad fish odors and all). Most people are pretty upset about their bonuses.

And here’s what a midlevel to senior associate shared:

Billed [more than 2300 hours] and received [roughly $10K less than market]. When I saw that, I thought about giving notice right then and there, with the partner sitting in my office. I am sick and tired of [slaving away] and being rewarded with less than market bonuses. Partners tell us every month about how well the firm is doing (aka how much money the partners are raking in) but that has not trickled down to associates, especially midlevels who are supposed to be the core of the firm.

Rumor has it many other high billers have received below-market bonuses, with a few select partner favorites receiving above-market bonuses. A number of departure emails are expected in January and I know of at least four midlevel and senior associates who are leaving. I am working on my résumé as we speak.

Even some of the contented junior associates got wind of their more-senior colleagues’ discontent. “I’m happy and pleased [with my own bonus],” one junior associate told us, but “I have heard grumblings that more senior folks were shafted.”

If your own firm’s bonuses are stinking up the office — or if, on the other hand, your bonuses smell as sweet as roses — please email us or text us (646-820-8477). Thanks.

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UPDATE (12/28/2015, 9:52 a.m.): In a black-box bonus system, reactions will inevitably vary. Here’s a satisfied Fenwick source, dissenting from the negativity: “I’m a junior associate at Fenwick and happy with my bonus. My sense is that people were generally happy this year.”

Earlier: Associate Bonus Watch: 5 Firms Foster Frustration
Biglaw Firm Reminds Lawyers Not To Stink Up The Office In Multicolored, Pictorial Guide

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