When a Biglaw firm starts teasing changes to their bonus structure months before they’re actually ready to release it, they (knowingly or not) are building hype. So when the new scale finally drops, it’d best be stellar, otherwise Above the Law is gonna get tips like this:
Another disappointed Seyfarth Shaw associate here.
Let’s back up just a smidge. Sources at Seyfarth Shaw tell us the talk about the bigger, better bonus pool started in October with an email from managing partner Pete Miller. Then earlier this month, associates were promised the “enhanced” bonus policy by the end of the month, but when the details were finally released, they were underwhelming:
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Today we received the email with details of the “enhanced” policy, which is basically a guaranteed minimum bonus (which is so far below market I’m surprised they sent a memo) and a new “discretionary” bonus based on a vague set of criteria. Nobody is putting any weight in the discretionary bonus, so basically there is no change at all.
The full policy is available below, but it provides bonus minimums based on billable targets. And one of the most… interesting points is that bonuses are tiered by levels — associate, managing associate, and senior associate — without the additional levels of class year distinctions that are typical at Biglaw firms. Also, while these are intended to only be a floor on bonuses, many associates aren’t confident they’ll see much more.
To say associates are miffed would be an understatement. The most galling part of the email is the claim that the firm’s compensation package “is equivalent to or greater than our competitors in the market.” REALLY??!!! What competitors? Seyfarth brings in about $1,000,000 PPP. There’s no way other firms in that range are paying bonuses this low. $12,000 for billing over 2000 hours for sixth years?!! None of us are expecting to be paid on the Cravath scale, but this is awful.
Here’s hoping when bonuses based on the policy are finally paid out associates are pleasantly surprised by the firm’s largess.
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Read the full bonus email below.
Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).