Bigger Bonuses? Lower Hours Requirements? Is This 2017?
Surprising windfall for these associates.
When the firms fell all over themselves handing out $180K-scale salaries all across the country, most observers expected static (or lower) bonuses and heightened billable expectations to follow not long behind. Which is why it’s so surprising to see a firm that historically lags a little behind the market on bonuses announce that they’re doing the exact opposite of everyone’s expectations.
Last year, we received a lot of angry tips from Baker Botts associates lamenting that the firm’s “levels” system — which replaces the industry-standard class years — systematically left associates behind their counterparts at the major Biglaw firms. A big contingency win resulted in some additional bonus cash in their pockets, but that was a unique event.
This year, things are different. From managing partner Andrew Baker’s memo this week:
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In prior years, associates were generally required to record 2,300 credit hours (including chargeable, pro bono and MANB hours), in tandem with a number of subjective factors, to receive so-called “NY market scale” bonuses….
Beginning in 2017, the hours threshold for paying U.S. associate bonuses at the NY market scale will be reduced to 2,000 credit hours.
Wha? That’s not what we expected to hear in 2017, with demand still so sluggish.
Moreover:
In addition, to reward truly exceptional performance, enhancements to the NY market scale ranging from 10% to 50% of these amounts will be made to associates with substantially higher levels of credit hours. A minimum of 2,150 credit hours will be required for consideration of bonus enhancements.
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So an associate who expected to grind for 2300 hours to get New York market can now do the same work and expect 1.1x to 1.5x market? That’s a tremendous development.
Baker Botts isn’t eliminating its “levels” system that groups multiple class years together, and that means Baker Botts associates may lag behind from time to time, but it all works out over the course of a whole career. One helpful tipster created a chart to show what the Baker Botts compensation scheme looks like at this point:
Needless to say, the tipster feedback we’ve gotten is positive.
Congratulations to Baker Botts associates!
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Remember, we need you to help us help you when it comes to bonus news at other firms. As soon as your firm’s bonus memo comes out, please email it to us (subject line: “[Firm Name] Bonus”) or text us (646-820-8477). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.
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(The full memo is available on the next page…)
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Joe Patrice is an editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.
