New York Biglaw Firms May Be Signaling Trouble Ahead By Not Beating Market Bonuses
This conservative bonus season may be just the beginning....
A lot of firms are trying to be more conservative given the question of what 2023 will look like. There is a lot of partner talk about uncertainty and a feeling that a slowdown is coming. Some firms might be trying to flesh out their fiscal year and calm partner nerves.
But I have been surprised that we haven’t seen more New York firms jump into the bonus game. I suspect most of those firms will have strong financial results in terms of revenue per lawyer and profits per partner. Those high-performing, elite firms don’t want to be accused of experiencing significant growth in partner compensation and not passing that down to associates.
— Kristin Stark, a legal consultant and principal at Fairfax Associates, in comments given to the American Lawyer, concerning the fact that the majority of Biglaw firms have matched the Baker McKenzie base bonus scale, rather than exceed it, perhaps due to the threat of a looming recession.
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.
