Biglaw

Where There's A WILL, There's A Way Bigger Bonus

Firm informs associates that it's beating bonus scale... but in a black box.

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money22We hate black-box compensation over here at Above the Law. It’s not just that it robs us of our ability to report, it robs the whole legal industry of the ability to get a clear picture of the landscape. Everyone’s better off knowing what everyone’s getting.

That said, a lot of black-box employers endeavor to pay even more than market compensation. Which is nice. The problem is we never really know. If everyone gets shorted they may think they’re the only ones and never talk about it. That’s why we like to explode these black boxes whenever we can.

Still, if a firm has to go this route, it helps when it adds a little extra transparency to give us a general sense of what’s up.

McDermott, Will & Emery — number 24 on the Am Law 100 with $1,381,814,000 in gross revenue — informed associates that it will pay out special bonuses according to the Davis Polk scale, but would otherwise pay individualized bonuses. Though the memo makes it sound like associates will be pretty happy about it.

As we round out 2021, our regular year-end bonuses, which will be paid on 2,000 bonus-eligible hours and class year, are above the Cravath scale.

And for big billers, it sounds like they’ll be way above the scale. For those billing over 2,000 hours, which the firm reports includes a “significant majority” of associates this year…

These Associates will earn, on average, $40,000 more than the purported “top” of market firms, where Associates are generally expected to bill significantly more hours. Those in the upper quartile will earn, on average, $85,000 more.

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A lot of shenanigans can hide in “averages,” but even armed with that grain of salt, that should make for a very happy holiday for most associates!

Full memo reproduced on the next page.

*** Wondering if the grass is greener on the in-house side? Click here for a look inside the black box of corporate counsel pay in our 2021 In-House Compensation Report. ***

Remember everyone, we depend on your tips to stay on top of this stuff. 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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HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

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