The Price Of Joining A Firm That Doesn't Match Your Bonus
This is another match... for most people.
Most of the bonus season follows form. A leader announces, most folks follow, some outlier goes over the top to garner a little press but no one follows, then Am Law 100 firms start coming in with bonuses that either outright don’t match or have some sneaky caveats designed to save firms a few bucks. Later payout dates, higher billable requirements… stuff like that.
As far as I know, we’ve gotten into the phase 3 bonus announcements. As the shorting goes its impact isn’t too extreme, but it’s unfortunate for those who will be caught in the crosshairs.
Dechert Price just announced its bonuses, and more or less they follow true to form.
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Class of 2018 – $15,000
Class of 2017 – $25,000
Class of 2016 – $50,000
Class of 2015 – $65,000
Class of 2014 – $80,000
Class of 2013 – $90,000
Class of 2012 and senior – $100,000
Associates will need to be in good standing with 1950 “bonus hours” which is a combination of billables, pro bono, firm-as-client work, and 25 hours of shadowing. Bonuses will be paid on January 23, 2020. The memo says January 23, 2019, but it’s doubtful that they possess a time machine.
Only Wachtell has one of those.
What’s missing from this matching list is, of course, the class of 2019. Most firms are granting the newcomers class appropriate bonuses prorated based on their start dates. Dechert is extending that offer too, but only to associates who joined between December 1, 2018 and July 1, 2019. In other words, all the first years who joined in the Fall of 2019 are getting nothing for their efforts.
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If you ascribe to the worldview that bonuses mean “bonuses” in Biglaw — that bonuses are a purely discretionary perk to reward a year’s worth of effort — then this all makes sense. New associates didn’t work even half a year yet so they don’t deserve anything on top of the regular salary.
But bonuses aren’t “bonuses” in these firms. It’s an adjustable but a routine and expected component of an associate’s salary. To keep these associates paid in line with their peers at other firms, then they need to be paid what their peers are getting paid. It’s not a terrific amount of money… why skimp here?
In any event, congratulations to most of Dechert’s associates. For the newbies, better luck next year.
(Full memo captured on the next page…)
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