Biglaw Firm Offers Super-High Bonuses For Super-High Billables
Plus raises!
From: Kenneth Florin
Sent: Friday, January 21, 2022 9:55 AM
To: Kenneth Florin
Subject: 2021 Associate and Senior Counsel Bonuses and 2022 Associate Base Salary Scale
(Via BCC)
All,
I hope the start of the year finds you and your families safe and well.
While in many ways the early days of 2022 — not to mention much of 2021 — did not go as we hoped or planned, the Firm continued to display incredible strength and resilience. As a result of our collective efforts, and most assuredly the hard work and dedication of our associates and senior counsel, I am pleased to say that the Firm concluded another very strong year. I am also happy to announce that we have significantly increased our 2021 associate and senior counsel bonuses and 2022 associate base salaries, as you’ll see below.
As in past years, our bonus matrix begins with 1900 core hours, which is the number of core hours required to be eligible for a bonus. Associates and senior counsel completing the year in excess of 2400 core hours received bonuses higher than the published benchmarks. In addition, associates and senior counsel who generated collected business from clients they introduced to the firm (i.e., originations) typically received a 10% bonus on the collected amount. When core hours were annualized, such as for reduced-hours arrangements or lengths of service of less than the entire year, any bonus paid was pro-rated by a commensurate percentage.
Firm citizenship and compliance with firm policies were also important considerations when determining bonuses. For each associate and senior counsel, reviews were collected and considered, statistical and subjective information was studied, and input was sought from respective Department Chairs and Deputy Chairs.
In 2021, every associate who met the 1900 core hours benchmark (which included both client billable hours and creditable non-billable hours) received a bonus.
| 2021 | 2020 | |||||||||||
| 1900 Core Hours | 2000 Core Hours | 2100 Core Hours | 2200 Core Hours | 2300 Core Hours | 2400 Core Hours | 1900 Core Hours | 2000 Core Hours | 2100 Core Hours | 2200 Core Hours | 2300 Core Hours | 2400 Core Hours | |
| Tier 1 | $7,500 | $15,000 | $22,500 | $30,000 | $37,500 | $52,500 | $5,000 | $10,000 | $15,000 | $20,000 | $25,000 | $30,000 |
| Tier 2 | $15,000 | $25,000 | $35,000 | $45,000 | $55,000 | $75,000 | $10,000 | $15,000 | $20,000 | $25,000 | $30,000 | $35,000 |
| Tier 3 | $25,000 | $45,000 | $65,000 | $85,000 | $115,000 | $150,000 | $15,000 | $30,000 | $45,000 | $65,000 | $85,000 | $105,000 |
| Tier 4 | $50,000 | $75,000 | $100,000 | $125,000 | $180,000 | $220,000 | $30,000 | $50,000 | $75,000 | $100,000 | $130,000 | $160,000 |
| Tier 5 | $65,000 | $90,000 | $115,000 | $140,000 | $210,000 | $250,000 | $35,000 | $60,000 | $85,000 | $110,000 | $140,000 | $170,000 |
| Tier 6 | $80,000 | $105,000 | $130,000 | $155,000 | $235,000 | $275,000 | $45,000 | $70,000 | $100,000 | $130,000 | $160,000 | $190,000 |
| Tier 7 | $90,000 | $115,000 | $140,000 | $165,000 | $250,000 | $290,000 | $50,000 | $75,000 | $105,000 | $135,000 | $165,000 | $195,000 |
| Tier 8/SC | $100,000 | $125,000 | $150,000 | $175,000 | $265,000 | $305,000 | $55,000 | $85,000 | $115,000 | $145,000 | $175,000 | $205,000 |
In addition to the bonus increases noted above, I am also pleased to announce that we have made significant increases in base associate salaries for most tiers. Below is our updated compensation structure, which will be effective February 1, 2022 (updated individual base salary information for income partners and senior counsel will be provided on January 31).
| New Base as of 2/1/22 | Current Base | Base Increase | |
| Tier 8 | $340,000 | $300,000 | $40,000 |
| Tier 7 | $325,000 | $290,000 | $35,000 |
| Tier 6 | $305,000 | $275,000 | $30,000 |
| Tier 5 | $285,000 | $260,000 | $25,000 |
| Tier 4 | $260,000 | $245,000 | $15,000 |
| Tier 3 | $235,000 | $230,000 | $5,000 |
| Tier 2 | 215,000 | $215,000 | N/A |
| Tier 1 | 205,000 | $205,000 | N/A |
As with bonuses, the associate base salary increases reflected above are intended to establish a compensation structure that is both fair and reflective of the current marketplace and our position in the marketplace.
Despite the challenges of the past year, our attorneys achieved higher levels of productivity in 2021 than last year, and this, of course, is fantastic. Also very meaningful is the contribution our attorneys continue to make in our communities. In fact, last year we worked on more pro bono matters than in any other prior year. I am grateful to everyone whose hard work contributed to this amazing achievement.
At Loeb, we pride ourselves on our core values and cohesive culture, as well as the belief that there are many ways to make meaningful contributions to our firm. This is, and has always been, a key to our success. We know, without a doubt, that we are stronger and better when we work in a collaborative and supportive environment. This is what makes us special, and it was on full display in 2021.
As I close, I want to thank you again for your incredible dedication and contributions during another challenging year. I am hopeful that 2022 will finally usher out this pandemic, allowing us to meaningfully come back together soon. Until then, I know you will continue to work hard and stay connected, and make 2022 another successful year.
Of course, if you have questions on any of the information provided above, please let a member of our leadership team know.
Ken
