Biglaw, Bonuses, Money

Associate Bonus Watch: New York Bonuses Go To Washington

Will other Washington firms follow suit?

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New York bonuses go to Washington.

Now these are some ‘capitol’ bonuses.

I was chatting a few days ago with a D.C. lawyer who wanted to know what would be considered “market” for bonuses in Washington. I told this attorney, “Tough to say — some people like to think it’s the New York scale, but there are enough major D.C. firms that pay well below that, so I’m not sure that’s really the right answer.”

But maybe it is now? Covington & Burling — which we’ve previously described as “arguably the top dog in town (at least among full-service Biglaw firms, setting aside elite litigation boutiques and such)” — just announced bonuses for its D.C. and California associates, and it has basically moved to the New York scale.

It has also moved to a system that’s more lockstep than its prior individualized system. As noted in the memo, posted in full on the next page, Covington in D.C. and California is taking the NYC bonus scale and using it as the basis for a “unified scale” of “presumptive bonuses.” The presumption is that “all associates in a given class presumptive receive the same bonuses,” as long as they meet the firm’s “workload benchmark” (which we understand to be 1950 hours, including pro bono work). But the memo notes that associates with workloads or performances that are below or “significantly above” expectations might get bonuses below or above the unified scale.

Two questions. First, Covington bonuses in New York, announced back in December, took the NYC scale and called it a table of “maximum bonus amounts.” Does the Covington D.C. announcement mean that top performers in Washington might get more than their high-performing colleagues in New York? If so, that would be a reversal of Covington’s past practice, which treated New York associates better than their counterparts elsewhere.

Second, and more importantly from the broader Biglaw market perspective, does Covington essentially following the New York scale in Washington put pressure on other D.C. heavyweights — think Akin Gump, Arnold & Porter, Hogan Lovells, Steptoe & Johnson, and WilmerHale — to follow suit, either by matching Covington if they haven’t yet announced or retroactively enhancing bonuses if they have already announced?

(By our count, we’ve already seen 2015 bonus announcements from Arnold & Porter, Hogan Lovells, and WilmerHale. We believe that Akin and Steptoe bonuses are out, but we don’t have the memos or info — please send our way if you can.)

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We reached out to our Covington sources for their reactions. Most seemed pleased. Here’s what one said:

Now there appears to be a hard cutoff at 1950 hours, including billable and pro bono only. They still had us write bonus memos this year describing any additional factors like cancelled vacations. I was [a little under] 1950 and am not sure yet whether I should be pumped or whether I’m getting screwed. I am disappointed to still have to wait until April to find out, but I think busier colleagues should be pleased and will benefit from both higher average bonuses and certainty.

Thanks always for shining some sun on comp.

You’re most welcome. Please help us help you by sending bonus tips by email or by text (646-820-8477). Thanks again.

(Flip to the next page for the complete Covington & Burling bonus memo.)

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