Associate Bonus Watch: Moving The Goalposts?

PAUL HASTINGS LLP — MEMORANDUM — 2015 ASSOCIATE BONUSES

to: All U.S., Frankfurt, London, and Asia Office Associates
copy: Partners, Talent Development
from: Teri O’Brien & Melanie Rupert, Global Talent Development Co‐Chairs
subject: 2015 Associate Bonuses

We are pleased to report that the majority of our associates met the bonus‐eligible criteria during 2015 and will receive a bonus this month.

The Firm strives to pay bonus levels competitive with market conditions. In addition, supplemental bonuses in varying amounts have also been awarded to select associates in recognition of their exceptional contributions to the Firm over the past year. These supplemental bonus amounts will result in bonuses that exceed the baseline set by our competitors.

Baseline Bonus Amounts for Associates for FY 2015

The table below shows the baseline bonus figures by class year for bonus‐eligible associates in our U.S., Frankfurt and Asia offices, where we continue to match our peer firms.

Class Year Bonus

2008+ $100,000
2009 $90,000
2010 $80,000
2011 $65,000
2012 $50,000
2013 $25,000
2014 $15,000
2015 $15,000

The table below shows the baseline bonus figures by class year for bonus‐eligible associates in our London office, where we also continue to match our peer firms.

Class Year Bonus
2008+ £66,000
2009 £59,500
2010 £53,000
2011 £43,000
2012 £33,000
2013 £16,500
2014 £10,000
2015 £10,000

Criteria for Baseline and Supplemental Bonus Eligibility for 2015

Bonuses are awarded based on both productivity and merit:

• For the productivity component, the hours threshold was set at 99.5% of an associate’s qualifying hours budget in 2015. For example, full‐time associates with a 2000 hour budget who worked at least 1990 qualifying hours (which consisted of client billable, Firm special projects, and pro bono hours) between January 1, 2015 and December 31, 2015 met the hours threshold. Associates with an adjusted budget of less than 2000 hours (e.g., due to part‐time work) were measured against an adjusted threshold which took into account their adjusted budget.
• For the merit component, associate performance was evaluated in view of the following performance criteria: quality and efficiency of legal work, including achieving favorable legal results for clients; consistently demonstrating performance of core competencies; economic contribution; client service excellence; business and practice development; Firm committee and community involvement, including pro bono activities; and training and coaching of more junior associates.

All associates other than the class of 2015 were eligible to participate in the bonus pool if hired prior to October 1, 2015 and actively employed on the bonus payment date. Bonuses were prorated for associates who worked at the Firm less than full‐time at any time during the 2015 calendar year.

Bonuses were supplemented for truly outstanding associates who distinguished themselves by consistently demonstrating exceptional performance that surpassed the Firm’s high standards. The Firm’s performance expectations are substantial, and receipt of a bonus that exceeds the baseline bonus is a significant achievement.

Schedule for Associate Bonus Payments

If you are a U.S. associate scheduled to receive a bonus and are actively employed by the Firm on February 26, 2016, you will receive your bonus on February 26.

If you are an international associate receiving a bonus, you can expect to receive your bonus in your February paycheck.

The partner or of counsel who is responsible for your performance review has received your bonus information and will provide it to you during your performance review conference. Any questions you have regarding your bonus should be directed to your reviewer or your Local Department Chair.

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We appreciate your ongoing contributions and dedication to the Firm, and we look forward to your continued support in making Paul Hastings one of the world’s leading law firms. It is your commitment to service excellence that advances the Firm’s strategy and enhances our competitive advantage in the market. Thank you all, and keep up the good work.

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