Big Firm Announces Big Bonuses
One more late mover.
While the bulk of top-tier firms announced their bonuses before the holidays — you know, like you’re supposed to with an annual bonus — others drag out the suspense and keep their associates in limbo until well into the new year. This practice is usually explained away as an end-of-year receivables issue, which makes sense until the firm matches the market like they were always going to.
But Latham & Watkins, which announced bonuses yesterday, may really have held out to get a more thorough view of their finances, because while their “base” bonus matches the market, most associates are getting a little bit extra. The full memo, featuring the median bonuses by class as well as the top bonus received within the class, is available on the next page.
LW announced its bonuses today (query why they still wait 2 months after its “peer” firms announce). Main theme is significant compression for junior bonuses. Senior bonuses seem to be a beneficiary (130K!).
Junior associate, 2300+ hours, good reviews, about 1.25x Cravath (a similarly situated person in last year’s class would have received 1.67x, so I’m left wondering the reason for the dropoff).
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Indeed, looking back at last year, the top bonuses of the most senior associates are getting healthy boosts at the expense of the top-performing juniors, but juniors overall came out a little better. Last year the first-year class received a “median bonus” of $16,000, while this year’s young’uns are getting $16,500. That said, the top bonus for a first-year last year was $25K, while this year it’s $18K.
And the beneficiary is absolutely the top seniors. Last year, the top senior class got a $100K bonus without exception, and the next most-senior boasted a $105K median and a $125K top. This year, the top bonus for the class in this position is $130K.
Whether this was just a good year for the senior folks or some kind of course correct from last year is anyone’s guess.
Most folks seem happy — if reservedly so:
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- “Latham’s bonuses were announced today. I billed a lot of hours this year and got about 25% above market. I’m very happy. It’s nice to work at a firm that rewards high billers.”
- They’re out, and they’re the same as last year – so the long held tradition of following (but never beating) the market continues!
One tipster, though, has a message for Latham about basic business tact:
The Latham bonus memo really needs to drop the “We continue to pay bonuses at 1900 hours even though many of our competitors use higher hours thresholds for bonus eligibility.” It is tacky. I get it; you are not the worst. But I would also point out that you are not the best.
Always remember that your obligation isn’t just to do your job, it’s to lavish praise on your employer as the beneficent philosopher-kings who make your meager existence possible. Latham is merciful and mighty. Never forget that.
(Check out the full memo on the next page…)
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Remember to help us help you when it comes to bonus news at other firms. As soon as your firm’s bonus memo comes out, please email it to us (subject line: “[Firm Name] Bonus”) or text us (646-820-8477). 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.
Joe Patrice is an 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.
