Biglaw

Facing Mounting Pressure Over Shortchanging Attorneys, Baker McKenzie Doubles Down And Blames Associates

Morale at Baker McKenzie is sinking like a stone.

By  
on

Baker McKenzie associates reacted with shock and outrage when the firm retroactively changed its existing bonus policy, jacking up the billable hours requirement without warning and leaving attorneys with bonuses as little as 50 percent of what they’d counted on. Facing mounting pressure over the move, Baker McKenzie scheduled a firmwide call to address the policy.

And told associates to screw themselves.

According to reports of the call’s contents, the firm expanded on its new bonus expectations:

Apparently we need to bill 2,100-2,200 hours, log 100 pro bono hours, and log 300-400 promotional/business development hours and do “excellent work” just to get market bonus. According to those at top, “Baker is not for everyone, if you just want to do the minimum and receive the highest bonus possible.”

This tracks with the rumor that Baker bigwigs have convinced themselves that the elite firms setting the market are requiring 2200 hours of associates to get their full bonus, which isn’t really true. Certainly most elite Biglaw associates are probably billing 2200 hours or more, but there’s a big difference between billing 2200 hours and being required to bill 2200 hours. Baker McKenzie seems to think the reason it’s off a step from the elite is that its associates aren’t properly motivated to grind out hours which is… probably not the reason. Perhaps Baker is coming to grips with the reality that it shouldn’t have rushed to join Cravath’s salary bump cavalcade. Whatever’s wrong, Baker McKenzie is sure it’s the associates’ fault.

This is where the call took a turn for the desperate. Baker McKenzie declared to the assembled firm that they’re turning away lawyers begging to work there, basically daring associates to find a new job if they don’t like their compensation package. This is crazy significant other “you’re lucky to have me” territory. It’s also an argument that proves a bit too much — people wanted to join Baker McKenzie when it was telling the world that it was paying bonuses in line with market expectations. It’ll be shocking if as many young lawyers are still beating down their door three months after this debacle.

Because that’s what Baker McKenzie doesn’t seem to get at all. It’s not really about paying subpar bonuses — plenty of firms off the top-tier pace do that. And it doesn’t really matter that the firm teases some outside possibility of a higher-than-market bonus for associates who move into their office and pump enough Adderall to bill 4000 hours or whatever. The firm lost its credibility with its lawyers and, in short order with the lateral market, when it switched its policy midstream. A 2200-hour billing requirement sucks but it’s something a lawyer can plan around when they have a year ahead of them. Springing it at the last minute evinces a lack of respect for the associates doing the firm’s work and makes you wonder what else the firm might do without warning.

Sponsored

But for now, it’s clear that Baker McKenzie’s leadership has decided that the beatings will continue until morale improves.

Earlier: Associate Bonus Watch: Biglaw Firm Retroactively Changes Bonus Rules — Associates Left With 50 To 80 Percent Of Expected Bonus

HeadshotJoe 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.

Sponsored

Bonus Time

Enter your email address to sign up for ATL's Bonus & Salary Increase Alerts.

Topics

, , , ,