Associate Bonus Watch 2008

The latest news from Orrick, Herrington & Sutcliffe will make Latham & Watkins associates feel marginally better. There is now another major firm freezing associate salaries: After careful consideration, we have decided that associates in the US and Europe , and associates, senior consultants and consultants in Asia , will receive the same salary in […]

Mayer Brown has wished its NYC associates a merry Christmas Eve with bonuses matching the New York market (a.k.a. the Cravath/half-Skadden model). Our tipster tells us there is no official word as to pay raises for 2009. This announcement comes a month after Mayer announced layoffs of 33 attorneys, as well as administrative staff. Our […]

So much for O’Melveny & Myers setting the bonus market for L.A. Proskauer Rose announced their bonuses this afternoon, and they will be paying the Cravath scale across all of their offices. That’s good news if you’re in Boston, expected news if you’re in New York, and a slightly disappointing confrontation with reality if you’re […]

Dear Jones Day threadjackers: Here is your post about the Jones Day bonus. Now please put the lotion in the basket and give me back my dog. Okay. Yesterday, Jones Day sent around its individual compensation letters. Traditionally, Jones Day makes bonus decisions on a case-by-case basis. This year is no different, but a tipster […]

The big bonus / salary meeting at Kirkland & Ellis is still ongoing. But tipsters are now reporting that K&E is essentially designing its bonus scheme around the Cravath scale (subject to the Kirkland system of adjusting bonuses for hours and performance — “above class,” “with class,” “below class,” etc.). We’ve also heard some good […]

Dechert has been the subject of a lot of bad news lately. The associates still at the firm will be pleased to know that they will be getting a market bonus for hanging on this long: We are pleased to announce that we will be paying base bonuses for 2008 to associates in each of […]

After spending some quality time with Stephen Hawking and an abacus, we are now ready to report the bonus associates at Hogan & Hartson will be receiving this year. For the firm’s offices in D.C., Baltimore, Philadelphia, and Northern Virginia the scale is as follows: 2002 and above – $7,500 to $37,500 2003-2005 – $7,500 […]

Sources at Sullivan & Cromwell confirm that the firm is going to pay (deep breath) the New York market rate on 2008 associate bonuses. We haven’t gotten our hands on an actual memo yet, but our sources are unhappy enough that we believe it to be true. From one S&C associate: “Either the firm is […]

Individualized memos have been issued to Skadden Arps associates to inform them of their 2008 bonuses and 2009 base salaries. The Skadden base salaries reflect the customary annual pay raises — sorry, Lathamites. Because Skadden’s announced bonuses this year are so much higher than the Cravath-established market level, folks at other firms have wondered: Are […]

Following up on its inspirational holiday card, yesterday Cadwalader announced the NYC-standard crappy Cravathy bonuses. The transmittal memo, which included the familiar numerical table, was short and sweet: We are pleased to announce that the Firm will award year-end bonuses to associates and counsel as follows. Bonuses will be based on previously communicated criteria and […]

It’s getting ugly out there. For the first time since 2005, associate bonuses at Wachtell Lipton have dipped below 100 percent of base salary. For those of you who aren’t familiar with the subject, here’s how bonuses at WLRK work. First, they’re lockstep, not tied to any billable-hours requirement or performance review. Everyone in the […]

Update (3:30 PM): Please note that this post has been revised in various respects since its original publication. The situation is fluid and we are investigating further. Thanks. It’s moving day. Time for the elite firms to separate themselves from everybody else. Multiple tipsters inform us that O’Melveny & Myers associates, in California and in […]

After yesterday’s Latham bombshell, Biglaw eyes turned to other California firms. Will Latham be a pack leader or a poop bag? Last night, Gibson Dunn gave the first answer. In individual meetings that started yesterday — and will continue today and tomorrow — Gibson associates are being informed of their 2008 bonus. As we understand […]

Allen & Overy, recently named by American Lawyer as the firm with the sixth-highest revenue in the world, just decided to pull a Half-Skadden: Bonuses will be paid at the end of January. Class of 2008: $17,500 (pro-rated)Class of 2007: $17,500Class of 2006: $20,000Class of 2005: $22,500Class of 2004: $25,000Class of 2003: $27,500Class of 2002: […]

After stealthily laying off at least 30 associates, the Fried Frank bonus announcement should come as no surprise: Nobody expected Fried Frank to break into Skadden territory on bonuses. But at least there is a nod towards the reason for paying the low-end bonuses championed by Cravath: Current global economic conditions have presented new challenges […]

Ropes & Gray has announced the bonus structure they will be paying to junior associates across all of their offices. While the structure is nominally a Half-Skadden payout (which might work just fine for Boston based attorneys), there are a bunch of interesting caveats. The basic structure is as follows: Class: Base Salary: Bonus: Total […]

Debevoise & Plimpton has been very busy and very profitable. They recently sent around a positive internal email about the firm’s business during the downturn. And we know that the Siemens case has treated them well. But in 2008, public protestations of solid business mean nothing when it comes to associate compensation. Debevoise announced that […]

More bonus news today, this time from Schulte Roth & Zabel. The numbers are not surprising: Class Year: Bonus 2008: $17,500 (pro rated)2007: $17,5002006: $20,0002005: $22,5002004: $25,0002003: $27,5002002: $30,0002001: $32,5002000: $32,5001999: $32,500 Schulte has an hours target, but it also claims Cerberus as a major client. Cerberus owns Chrysler… so there has probably been at […]

Even I have “adjusted” to the fact that the market thinks Half-Skadden set the market with their low associate bonuses. People are afraid for their jobs and firms have an opportunity to use the fear to save a buck. Why compete with elite firms like Skadden when there’s money to be made? Still, a few […]

If the second-most profitable law firm in the nation cuts bonuses by 73%, what do you expect regional firms to do? Today, the management committee at Epstein Becker & Green made a decision that we will probably be copied at regional firms throughout the country. From the EBG internal memo: The cautiousness of the Firm’s […]