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When you hear Biglaw “special bonuses,” what do you think of? Probably money on top of an associate’s expected compensation. But as associates at Ogletree Deakins are learning, that isn’t always the case.
Ogletree instituted some severe austerity measures as a result of COVID-19 which included furloughs, cutting their summer associate program, and reduced pay for equity partners, associates, and highly compensated staff. But come the fall, they were able to restore compensation. And they announced a special bonus of $10,000 that was supposed to pay associates who bill 1,700 hours in 2020 (associates who bill 1,900 hours were to receive an additional $10,000 on top of the special bonus, and those who exceed 2,000 hours qualify for a bonus based on a percentage of their salary).
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Notice how I say “supposed to”? Now that year-end bonuses have rolled around, an email sent by managing partner C. Matthew Keen paints a different picture (full email available on the next page):
I’m pleased to announce that, in light of the improved economics of the firm, all associates will receive at least 100% of their regular compensation in 2020. For most of those that hit 1700 hours in 2020, the $10,000 special bonus the firm adopted earlier this year will more than cover the 5% pay reductions that occurred between May and August of this year. Those that did not hit the 1700 hours will receive a payment equal to 5% of annual compensation by December 31. Those for whom the $10,000 bonus does not equal 5% of their annual compensation will also receive payment by the end of the year to account for the difference. All other bonuses (1900 hours, hours over 2000, originations, etc.) will be paid in addition to regular compensation. For 2020. those associates that exceed 1900 hours by December 15 will receive their $10,000 Program 1 bonus on or before December 31. Associates exceeding 1900 hours after December 15 will receive their payment in March of next year, when bonuses are normally paid.
So, those “special bonuses” were really just associates’ normal salary. That… doesn’t seem so special. And tipsters at the firm are less than pleased:
This is laughable. In September the firm announced a special $10k Covid bonus if you hit 1,700 hours and then all the normal bonuses would remain the same for 1,900+. Now they are just taking away the covid bonus and saying we’ll repay salaries in full that were cut. That’s nice but all this does is reward those who didn’t bill much. How cheap can the firm get? How about you pay us all back the salaries you cut AND also keep in place the covid bonuses?
What we are left with is a normal year’s program that rewards low billers and does nothing to acknowledge the difficulties of 2020. Shameful. I bet the shareholders did better than ever this year too. It is no wonder associates have been fleeing.
Really shows the steep drop from haves AmLaw25 to the have nots
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Listen, restoring salary cuts is great! Retroactive payments of those cut salaries is even better! But they aren’t special bonuses (which is why other firms call it back pay, make-whole payment, retroactive salary restorations or something similar). Especially not in a year when Biglaw is handing out actual money *in addition to salaries and year-end bonuses* because that is a “special bonus.” Not the sleight of hand Ogletree is pulling.
But I guess it’s good news that things are at least back to normal at the firm.
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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).