Biglaw

Bigger Bonuses? Lower Hours Requirements? Is This 2017?

Surprising windfall for these associates.

By Joe Patrice on March 10, 2017 12:24 pm

BAKER BOTTS — MEMORANDUM — ASSOCIATE BONUSES

From: Baker, Andrew
Sent: Wednesday, March 08, 2017
To: Baker, Andrew
Subject: U.S. Associate Bonus Policy
Sensitivity: Confidential

The Firm is committed to attracting and retaining the finest talent so that we may best serve our clients. Today we are announcing a new bonus structure for U.S. associates to ensure that the Firm’s compensation system remains competitive given changing market dynamics.

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.  The amounts of these bonuses have changed from time to time over the years and, at current NY market scale rates adjusted to reflect our “levels system,” are as follows:

Level 1 $15,000
Level 2(first year) $20,000
Level 2 $50,000
Level 3(first year) $50,000
Level 3 $100,000
Level 4 $100,000

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.  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.

On behalf of the Partners, I would like to again thank you for your continued hard work and dedication to the highest levels of professional excellence.

Andrew M. Baker
Managing Partner

BAKER BOTTS L.L.P.
One Shell Plaza
910 Louisiana
Houston, Texas 77002-4995

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