Biglaw

Despite Changes To Their Compensation System, Associates At Boies Schiller Can Still Take Home HUGE Bonuses

Bonuses for some associates are more than DOUBLE market rate!

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It’s been a wild year for noted Biglaw firm Boies Schiller & Flexner. Sure, sure, there was the global pandemic and social upheaval — but that’s what everyone’s been dealing with. BSF’s also had to manage a run of speculation about the future of the firm and partner defections, which they maintain is all part of a deliberate restructuring which put Natasha Harrison in the role of deputy chair and heir apparent to David Boies as chair.

Back in June, the firm announced that part of the changes would include revamping their notorious bonus system. For a long time, the firm prided itself on its generous bonus formula that includes a revenue share component that affords associates a cut of the matters they work on, which for contingency work can be massive. While it’s true the system can lead to some eye-popping bonuses, there’s also been criticism of the Boies bonus structure’s opacity. And while junior associates often make out better than peers at other firms, senior associates don’t always compare favorably to the market standard. And one slow year at the firm had compounding effects, as associates who failed to hit their minimum hours were “in the red,” and had to make up the hours the following year.

But the new system BSF hit upon allows associates something almost unheard of in Biglaw — a choice. Associates can opt into the tradition formula compensation model, or they can select market compensation. I spoke with Harrison and she said just under 50 percent of associates picked market bonuses this year (associates had to make their choice in the spring).

So what’s the deal with the new (for BSF) market system? Those market bonuses are in line with Cravath bonuses, and account for the special bonuses sweeping Biglaw as well. Usually market bonuses will have an hours requirement — 1900 billable hours and 100 nonbillable hours with things like diversity training and business development counting towards that total for a more holistic accounting of what associates actually spend their time doing. However, due to… everything in 2020, the firm has relaxed that hours requirement this year.

But what about those — still a majority — that opted for the formula bonuses? Well, they did alright for themselves, generally exceeding market compensation. And yes, those shockingly large bonus numbers are still in play at the firm. A senior associate took home a $450,000 bonus this year. And a handful of junior associates (we’re talking 2017/2018 grads) made $200,000 bonuses! That’s more than double what they’d expect on the market scale.

UPDATE: We’ve now heard from some tipsters at the firm who report being “thrilled” with their bonuses this year. For those that opted into the formula system, they say they felt “confident” about the steady stream of work at the firm. A senior associate told me they were busier than expect this year and their big bonus reflects the “significant” work they’ve done. And while insiders say they understand the reasons some might choose the market system, those that stuck with the formula say risk seems generally to be worth it and they have very, very large bonuses to show for it.

Harrison said the changes to bonuses have been in the works for a while, and at the start of the year she met with associates to discuss their issues and concerns and what they really wanted from a compensation system. And, importantly, the resulting system gives associates something they don’t always have in Biglaw: options.

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headshotKathryn 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).

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