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Associate Bonus Watch: Biglaw Firm Helps Associates Celebrate Love By Making It Rain

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By Staci Zaretsky on February 12, 2016 11:08 am

MORRISON & FOERSTER — 2015 BONUS MEMO — ASSOCIATES OUTSIDE NY

To All Associates on the U.S. Compensation Structure Outside of New York:

I want to thank you for your work and your contributions to the Firm’s strong performance in 2015.   The Firm’s partners truly appreciate and value your commitment to us, our clients, the Firm and each other.  I am happy to share with you today information on our 2015 bonuses and our 2016 base compensation structure.

2015 Associate Bonuses

As you know, under our 2014 bonus structure, associates were paid based on a single schedule of bonus amounts, dictated by class year.  As we considered how to structure the 2015 bonus program, we solicited a significant amount of associate feedback.  We thank those of you who shared your perspective on the program.  Based on your input, as well as industry trends, we believe that last year’s structure best allows us to meet our commitment to provide market level associate compensation in a manner consistent with Firm values.  Accordingly, the bonus structure adopted for 2015 remains based on seniority.  In addition, the Firm will pay an additional amount to those associates who had the busiest years, which we are categorizing as 2,500+ hours.  For 1st through 3rd year associates, the high hours bonus will be $5,000, and for 4th year and more senior associates, it will be $10,000.

Our 2015 bonus schedule for associates paid on the U.S. compensation scale is:

Class of 2015 $15,000 (prorated)
Class of 2014 $15,000
Class of 2013 $25,000
Class of 2012 $50,000
Class of 2011 $65,000
Class of 2010 $80,000
Class of 2009 $90,000
Class of 2008 (including prior years) $100,000

To qualify for a bonus, associates must have met their minimum 2015 legal service hours expectations1 and, if evaluated, performed at least at the level expected for their seniority level as stated in their evaluation, and progressed with their class.

As you know, timely submission of timenotes is increasingly critical to our business.  Lawyers who consistently failed to comply with our timenote submission policy are receiving a lower bonus, and have already been notified of the amount of the reduction.

2015 associate bonuses will be paid as part of the February 12 payroll.2   Note that we are not planning to provide individual bonus memos to associates paid in conformity with the aforementioned scale.

2016 Associate Base Compensation

2016 associate base compensation for those on the U.S. compensation structure will be paid by salary class year, as shown below.

2016 Associate Base Compensation

(U.S. Offices, U.S. Practice Attorneys)
2016 Year/

Seniority Level

 2016 Salary Class Base Compensation
1st 2015 $160,000
2nd 2014 $170,000
3rd 2013 $185,000
4th 2012 $210,000
5th 2011 $230,000
6th 2010 $250,000
7th 2009 $265,000
8th 2008 $280,000
9th 2007 $290,000

Questions

If you have questions after receiving your bonus, please contact Reza Ghani, Director of Benefits and Compensation, at ##### or #####. I invite you to bring more general questions about bonuses or base compensation to the associate calls scheduled for February 11, for which you will receive a separate calendar invitation.

Thank you again for everything you do for the Firm.  I look forward to another productive and successful year.

__________________________________________

1 If an associate’s hours expectation is prorated for any reason, including for those joining during the year, on reduced schedules, or on a paid or unpaid leave of absence during the year, applicable bonuses will be prorated accordingly.

2 Payment dates may vary in some offices outside the United States.

Larren

Larren M. Nashelsky
Morrison & Foerster LLP | www.mofo.com
250 West 55th Street | New York, NY  10019-9601

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