Biglaw

DLA Piper Announces Black-Box Bonuses, And Associates Seem Really Angry

The firm's bonus scale is so opaque that associates think it may be below market.

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As 2020’s Biglaw bonus season begins to wind down, we’ve got to wonder: Is there anything worse than below-market bonuses? The answer to that question may very well be black-box bonuses. As opposed to offering the traditional, lockstep bonuses that most firms do, some firms shroud their bonuses in secrecy, leaving associates wondering if there’s something else they could have done to earn more money and if their firms have actually met the prevailing market standard.

One of the firms that uses the black-box bonus system is DLA Piper, a self-proclaimed market leader on compensation. This past fall, the firm announced that it would not be offering its associates appreciation bonuses for all of their hard work during the pandemic. At the time, associates were livid, and now that the firm has finally announced its 2020 year-end bonus scale, let’s just say that associates were being polite when they referred to the firm’s financial moves as being “horseshit.”

Here’s an excerpt from DLA Piper’s brief bonus memo:

Bonuses again were determined based on seniority, Performance Rating (3, 4 or 5) and total bonus hours (including billable, billable equivalent, pro bono, shadowing, and knowledge management hours), with the largest bonuses awarded to the highest rated associates with the highest hours. Bonus amounts vary based on performance rating, and with incremental increases for bonus hours totaling 2150, 2300, and 2450. As we have previously communicated, we have modified our bonus program to enhance awards for our highest performing and most productive Associates in order to reaffirm our commitment to our Associates, and reward those Associates who have gone “above and beyond” our expectations. The total bonus pool for 2020 is materially greater than for 2019.

The firm’s total bonus pool may well be “materially greater” than it was for 2019, but associates who have reached out to Above the Law are angry. There aren’t enough adjectives to describe how unhappy they are with the bonuses they’ve received. Here are just a few of the comments we’ve received from associates:

DLA Piper bonuses finally announced via year-end assessment. Class of 2014, 2200+ hours, $102,000. Litigator in very busy practice. Extremely unhappy and will be talking to head hunters.

Individualized bonuses, but no special COVID bonuses. Baker reverses course on special bonuses, but DLA proves itself at least one tier below. Will be looking for a new firm in 2021 that pays market.

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No COVID bonuses. Disappointed to say the least. No longer can be considered a Vault 50 firm.

Associates still feel like management is trying to pull a fast one, especially with the proclamation that bonuses in 2020 were bigger and better than in 2019, but with most associates wondering why they weren’t seeing the money.

DLA Piper FINALLY released our official bonus information. And, it is both disappointing and impossible to figure out. I cannot begin to express how poorly this entire thing has been handled. After the last ATL article bashing the firm, management essentially went dark. They refused to communicate with the associates’ committee, they never provided us their “peer group” list they said they would and otherwise refused to engage. They never acknowledged the market bonus this year is Cravath scale plus special bonus even as basically every firm did so including even Baker McKenzie. They said they would make a decision once the year turned. Then they sent a very vague communication around the new year that they were still considering things. Then totally dark until yesterday.

Bonuses got released with an unbelievably vague email memo that says they are rewarding high performing high productivity associates to reaffirm their commitment to the associates and reward those who went above and beyond.

This is to use a legal word “hogwash.” I got a 4 rating on a 5 point scale with over 2000 hours. That is a very high rating in our firm and the firm says 3 ratings get market and 4s and 5s above market. Their memo provided no information whatsoever because they basically individualized bonuses to cover up that they did not give market bonuses. My overall bonus had a bit of a kicker over the Cravath scale, but that kicker was less than half of the special bonus scale for my level. My overall bonus was less than two years ago during the mid-year bonus year. They are just covering up that they are giving below market bonuses. The associates that I have heard of getting a full and true market bonus of Cravath scale plus DPW special bonus got high ratings plus had productivity in the range of 2,500 hours. So, basically the firm will say they paid market bonuses when it went to a tiny minority of associates. I think it might be something similar to what Hogan Lovells did. But again, it is impossible to even tell because they have kept it so hidden.

I believe it can all be summed up best by one of the comments in the last ATL article “absolute horseshit.” Opacity to cover up what they are doing, mendaciousness, lack of communication, obfuscation, and not matching the market.

Yikes. We’ve heard from approximately one associate who was pleased with his year-end bonus, who said, “Looks like DLA elected to give special bonuses after all. Rumor has it that you needed to hit certain performance thresholds to receive one but associates are much happier after seeing their official bonuses.”

So, if you billed your ass off during the pandemic and managed to earn a high performance rating, congratulations. It seems like DLA Piper may have handsomely rewarded those who did. If you came in just below the mark, you’re probably pretty upset — and reasonably so.

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All bonus payouts at DLA Piper will be made on January 29.

Remember everyone, we depend on your tips to stay on top of important bonus updates, so when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.

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Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

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