Top 25 Am Law Firm Announces Bonuses -- And 43% Of Associates Made More Money Than Market
Exciting news!
GOODWIN PROCTER — 2020 BONUS ANNOUNCEMENT
2020 BONUS PROGRAM AND 2021 COMPENSATION
On behalf of the firm and its partners, I would like to thank each of you for your hard work and commitment during 2020. In the face of unprecedented personal challenges and business disruptions, you continued to support the firm and its clients. We sincerely appreciate your dedication during an incredibly difficult year.
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This memo outlines the 2020 bonus determinations, bonus eligibility considerations for 2021, and 2021 base salaries.
2020 Bonus
Associates who met the 1,950-hour threshold during our fiscal year ending September 30, 2020 and the performance frameworks as discussed below are eligible to receive bonuses. Because bonuses are based on performance during our fiscal year ending September 30, 2020, associates hired after August 31, 2020 (including the Class of 2020) are not eligible to receive bonuses.
The 2020 U.S. associate bonuses are determined by reference to the bonus scale set forth below. As in past years, individual bonus awards may be above or below these “class” amounts based on a determination by ARC as described in more detail below. Evaluations are based on reviews written by supervising partners and associates and on the attorney frameworks for each level of seniority. This year, we also took into account the challenges that so many of you faced as a result of the global pandemic, including but in no way limited to struggles with childcare, illness, depression, and racial trauma. We sincerely appreciate your candor in describing these challenges and helping the committee understand how your ability to perform your work was impacted by external forces this year.
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All senior and mid-level associates who received a Successfully Achieves Frameworks rating will receive the full class amount starting at the lowest hour range. In addition, associates who record ARC hours materially higher than 1,950 hours and associates who received a Distinctive rating will receive bonuses above their class amounts. Associates receiving a Below Frameworks rating will not receive bonuses.
ARC did not give ratings to junior associates (classes of 2018 and 2019) except for associates who perform below the frameworks set forth for junior associates. We have determined that focusing on feedback and development is more appropriate for associates beginning their legal careers. Junior associates who met the 1,950 ARC hours threshold will receive the full class bonus amount unless they are performing below frameworks (in which case they will not receive a bonus). Those who materially exceeded the hours threshold will receive higher bonuses.
This year, 43% of bonus recipients will receive an amount greater than the amount listed for their class, and 57% will receive their class amount.
Class Year Bonus Amounts – 2020
| Class | Bonus | ||
| 2019 | $15,000 | ||
| 2018 | $25,000 | ||
| 2017 | $50,000 | ||
| 2016 | $65,000 | ||
| 2015 | $80,000 | ||
| 2014 | $90,000 | ||
| 2013+ | $100,000 |
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Bonuses will be pro-rated for hires during calendar year 2020. Consistent with the firm’s policy for leaves of absence and flex time arrangements, bonuses will be pro-rated for leaves and reduced-hours arrangements during fiscal year 2020. Bonuses will be paid by direct deposit on January 25.
For bonus eligibility in 2021, we will continue to require associates to bill at least 1,950 hours during the fiscal year to: billable hours, pro bono hours, legal services on behalf of the firm, and shadow training under the firm’s shadow training policy. Associates whose performance falls below the frameworks established for their level will not be eligible to receive a bonus.
2021 U.S. Associate Base Compensation Levels
Our base salary scale for U.S.-based associates will remain the same in 2021. We will recognize and reward our salaried associates in good standing for their contributions through the class year increases to their applicable base salary listed below. The class year increases will be effective January 1, 2021, and will be reflected in the January 25 monthly paycheck.
| Class | Calendar 2021 Salary | ||
| 2020 | $190,000 | ||
| 2019 | $200,000 | ||
| 2018 | $220,000 | ||
| 2017 | $255,000 | ||
| 2016 | $280,000 | ||
| 2015 | $305,000 | ||
| 2014 + | $325,000 |
Communication
Base salary increases and bonus awards will be set forth in notices posted in Workday on January 22, 2021.
Pro Bono and Investment Time
The firm remains committed to the Pro Bono Institute Pledge of dedicating 3% to 5% of its annual billable hours to legal matters on behalf of people in poverty or to advance civil rights. Accordingly, we ask all of the firm’s lawyers to commit at least 50 hours annually to pro bono. For bonus purposes, pro bono hours are treated the same as billable hours. At the end of this fiscal year, you will be asked to discuss your pro bono commitment in your Professional Development Report.
The firm also expects attorneys to collaborate through investment (or “91”) time matters, including marketing activities, knowledge management, Business Unit and Legal Practice Area initiatives, diversity initiatives, training and participation on firm committees. Collaboration and active participation in our community are core values of our firm and are included in the attorney frameworks setting forth our expectations for junior, mid-level and senior associates. Associates should seek opportunities to participate in 91-matters, particularly during times when they are less busy with billable or pro bono work. In 2021, ARC will continue to focus on the quality, not the quantity, of these efforts.
Please do not hesitate to call me, Heidi Goldstein Shepherd, Laura Baron, Nancy Kirk or your Department, BU or Legal Practice leaders, with any questions or comments.
Again, thank you for your efforts and contributions to the firm.
Staci 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.
