Associate Bonus Watch: The Good News Keeps On Coming

2017 BONUS PROGRAM AND 2018 COMPENSATION

On behalf of the firm and its partners, I would like to thank each of you for your hard work and commitment to the firm over the past year.

This memo outlines the 2017 bonus determinations, 2018 base salaries, and bonus eligibility considerations for 2018.

2017 Bonus

Associates in good standing who met the 1,950-hour threshold during our fiscal year ending September 30, 2017 are eligible to receive bonuses.  Because bonuses are based on performance during our fiscal year ending September 30, 2017, associates hired after August 31, 2017 (including the Class of 2017) are not eligible to receive bonuses.

The 2017 U.S. associate bonuses are determined by reference to the bonus scale set forth below and the ratings.  As in past years, individual bonus awards may be above or below these “class” amounts based on an evaluation by ARC.  Evaluations are based on reviews written by supervising partners and associates and on the attorney frameworks for each level of seniority.

All associates who received a Successfully Achieves Frameworks rating will receive the full class amount starting at the lowest hour range.  In addition, associates who record ARC hours materially higher than 1,950 hours and associates who received a Distinctive rating will receive bonuses above their class amounts.  Only associates receiving a Below Frameworks rating will receive less than the full class amount. 

This year, 77% of associates are eligible to receive bonuses.  Of those receiving bonuses, 35% will receive an amount greater than the amount listed for their class, 60% will receive their class amount, and 5% will receive less than their class amount. 

Bonuses will be pro-rated for recent hires and part-time schedules during calendar year 2017. Consistent with the firm’s recently revised policy for leaves of absence and flex time arrangements, bonuses will be pro-rated for fiscal year 2017 (and not the calendar year) where relevant for the associate. 

Bonus determinations will be delivered by interoffice mail to each associate on January 24, 2018.   Bonuses will be paid by direct deposit on January 25.

2018 U.S. Associate Base Compensation Levels

Our base salary scale for U.S.-based associates will remain the same in 2018.  We will recognize and reward our salaried associates for their contributions through the class year bumps to the applicable base salary listed below.  The class year bumps will be effective January 1, 2018, and base salary adjustments will be reflected in the January 25 monthly paycheck.

Base salary adjustments will be set forth in memoranda delivered by interoffice mail to each associate on January 24, 2018.

Bonus Eligibility for 2018

For bonus eligibility in 2018, we will continue to require associates to bill at least 1,950 hours during the fiscal year to:

·         Billable hours

·         Pro bono hours

·         Legal services on behalf of the firm

Shadow training under the firm’s shadow training policy

Similar to this year, bonuses for associates will continue to be pro-rated for recent hires and part-time schedules based on the calendar year and, where relevant, for leaves of absence and part-time schedules based on the fiscal year.

Pro Bono and Investment Time

The firm remains committed to the Pro Bono Institute Pledge of dedicating 3% to 5% of its annual billable hours to legal matters on behalf of people in poverty or to advance civil rights.  Accordingly, we ask all of the firm’s lawyers to commit at least 50 hours annually to pro bono.  For bonus purposes, pro bono hours are treated the same as billable hours.  At the end of this fiscal year, you will be asked to discuss your pro bono commitment in your Professional Development Report.

The firm also expects attorneys to collaborate through investment (or “91”) time matters, including marketing activities, knowledge management, Business Unit and Legal Practice Area initiatives, diversity initiatives, training and participation on firm committees.  Collaboration and active participation in our community are core values of our firm and are included in the attorney frameworks setting forth our expectations for junior, mid-level and senior associates.  Associates should seek opportunities to participate in 91-matters, particularly during times when they are less busy with billable or pro  bono work.  In 2018, ARC will continue to focus on the quality, not the quantity, of these efforts.

Please do not hesitate to call me, Heidi Goldstein Shepherd, any ARC member or your Office, Department, BU or Legal Practice leaders, with any questions or comments.

Again, thank you for your efforts and contributions to the firm.