Our last few bonus stories have been on the negative side, concerning bonuses deemed “cheap” or “very disappointing” or “substantially below market.” So today we’re pleased to bring you some happy bonus news.
We’ve discussed this latest bonus cycle as the “year of atonement,” in which firms with previously disappointing bonuses upped their game. But the firm we’re about to discuss has nothing to apologize for.
In the prior bonus cycle, Goodwin Procter announced bonuses that even my curmudgeonly colleague Joe Patrice deemed “generous.” And this time around, Goodwin even sweetened the pot (slightly).
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To refresh your memory, here’s what Goodwin did with 2014 bonuses (the “class amounts” are basically the NYC market amounts, last year set by Davis Polk):
[O]ver 69% of associates are receiving bonuses. Of those receiving bonuses, 36% will receive an amount greater than the amount listed below for their class, 32% will receive their class amount and 32% will receive less than their class amount.
And here’s what the firm is doing for 2015 bonuses (with “class amount” a reference to the Cravath scale).
[O]ver 70% of associates are receiving bonuses. Of those receiving bonuses, 42% will receive an amount greater than the amount listed below for their class, 27% will receive their class amount and 30% will receive less than their class amount.
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So that looks like improvement (even if not huge). And the news is being received well by associates. Here’s what one tipster told us:
Actual bonus amounts won’t be disclosed until Friday, but as an associate with a distinguished rating, I’m happy that I’ll be making more money than my counterparts at lockstep firms, even though my hours aren’t wildly high (sub-2400). Based on previous years’ rubrics, I expect to receive 20% above market.
I’m not hung up on potentially missing out on the additional 10% of the market amount, granted in the past to distinguished associates with higher hours – it’s still a ton of money overall, which I’m able to make without slaving away in misery trying to reach 3000 hours, like I’d have to in order to receive a similar payout from other firms that pay on a “merit-based” system.
So that’s good news from Goodwin. You can check out the full memo, from partner William J. Weiss, on the next page.