Associate Bonus Watch: To Play In The Big Leagues, Pay Like The Big Leagues
Associates at this firm are "ecstatic" about their bonuses.
Last year, we posed the following question about Vinson & Elkins: “The real issue for V&E going forward is how it can convert itself from a Texas market leader into a national or even international firm, along the lines of a Kirkland & Ellis or a Latham & Watkins. Will Vinson & Elkins succeed in that transformation?”
One must give V&E credit: if it doesn’t enter the Kirkland/Latham tier, it won’t be for lack of trying. If you want to play with the big boys (and girls), you must pay like the big boys — and that’s what Vinson & Elkins appears to be doing.
The firm recently announced bonuses, and associates are, as one tipster told us, “ecstatic.” It had a record year, and V&E partners decided to share the wealth — across all offices, employing a national bonus scale. Here is one source’s concise explanation:
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Vinson & Elkins announced associate bonuses [last] Friday. Cravath match at 2,000 hours across all offices, with supplemental bonuses of 1.10x – 1.35x for high billers (2,150+). In addition, all first-years – regardless of hours – received the standard $15,000 market bonus (again, with supplemental bonuses for higher billers).
The Management Committee should be lauded for this change to the bonus structure. In previous years, market bonuses were paid only to associates with 2,300+ hours – a high bar particularly given the number of national firms that have opened offices in Texas in recent years and pay market bonuses at 1,850-2,000 hours. This was the primary complaint of associates, and now it has been addressed. Associate morale is very high.
The firm’s tremendous year was probably the main motivator behind the strong bonuses, but as suggested above, the role of competition in the Texas markets can’t be overlooked. As a second source said, “There is obviously significant pressure from the New York carpetbagger firms, and so the firm has stepped up to meet what the market has demanded.”
Here are a few more reactions:
- “Big bonus news at Vinson and Elkins. Moved to a national scale, as opposed to having to bill 2300 hours to get market bonus. Now paying like Latham or Kirkland, where associates can earn anywhere from 1.1 to 1.35 times market. Very fundamental shift for the firm.”
- “Lots of very happy people at Vinson & Elkins today…. Most people I’ve talked to received well more than the Cravath scale, with most productive earning more than the highest earners at Latham, Kirkland and elsewhere.”
- “Midlevel corporate associate with high hours – [over $80,000] bonus. Very excited about bumping the max bonus to 1.35x.”
- “Received a full market bonus in D.C. at 2,000 hours for the first time. According to the memo, high billers could have beat market. In the past, the D.C. office was treated differently than New York and San Francisco for bonuses, which caused some hurt feelings. Management stepping up this year shows that the associates have been heard and management finally made it right.”
- “Vinson & Elkins announced bonuses today, and the firm went all out! We were extremely busy in 2016 and appear to be on pace for an even hotter 2017, so the firm showed that when the associates help with a record year, they get record bonuses…. Although pro bono was not counted toward the supplemental [as opposed to first-level] bonus, people seem extremely happy. Up to 35% above the NY bonus in Texas? No complaints here. Big thanks to the partners at V&E.
- “V&E bonus information is currently being delivered to all associates, and the universal consensus is that associates are ecstatic…. V&E leadership continually expresses its gratitude to its associates. Thankful that compensation and bonuses remain consistent with this message.”
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And wait, that’s not all! V&E also paid a “special bonus” to staff — a bonus on top of the normal annual bonuses awarded to staffers. It’s great to see the firm recognizing the contributions of all its employees, across all departments.
Vinson & Elkins was founded in Houston in 1917, which means that this year, the firm will celebrate its 100th anniversary. Based on its 2016 performance, its 2017 outlook, and the generosity it has shown to associates and staff, it looks like V&E’s birthday will be very happy indeed. Congratulations to the firm on reaching this milestone, and best wishes as it enters its second century.
(Flip to the next page to read the V&E associate and staff bonus memos, sent out by chairman Mark Kelly and managing partner Scott Wulfe.)
Earlier: A Lateral-Partner Mess Down In Texas
Staff Bonus Watch: Open Thread (Kicked Off By Orrick And Vinson & Elkins)
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David Lat is the founder and managing editor of Above the Law and the author of Supreme Ambitions: A Novel. He previously worked as a federal prosecutor in Newark, New Jersey; a litigation associate at Wachtell, Lipton, Rosen & Katz; and a law clerk to Judge Diarmuid F. O’Scannlain of the U.S. Court of Appeals for the Ninth Circuit. You can connect with David on Twitter (@DavidLat), LinkedIn, and Facebook, and you can reach him by email at dlat@abovethelaw.com.
