2021 End of Year Bonuses Forum

[Anonymous User]

Yeah, we are done. Not a terrible outcome, in my view.

One key takeaway is that "Cravath scale" should be banished from the lexicon. Cravath is no longer a comp leader, just a meek frontrunner.

I don't work at Cravath, but am curious - is Cravath going to match DPW or just forge ahead on their own scale?

[Anonymous User]

Yeah, we are done. Not a terrible outcome, in my view.

One key takeaway is that "Cravath scale" should be banished from the lexicon. Cravath is no longer a comp leader, just a meek frontrunner.

I don't work at Cravath, but am curious - is Cravath going to match DPW or just forge ahead on their own scale?

They surely will match, along with dozens of other firms, almost all of which are less prestigious than Cravath and yet arguably less stingy.

[glitched]

See you next year folks! It was fun.

[Anonymous User]

How likely are more special bonuses next year, and at what point does their frequency make them less "special?"

[Ultramar vistas]

How likely are more special bonuses next year, and at what point does their frequency make them less "special?"

Idk. I was really convinced that the “special” component of these EOY bonuses would be paid at least at a slightly later date, like March, just to delat some of the inevitable January turnover that looks to be especially brutal this year.

Given that most firms will instead be paying out the entire thing at EOY, it makes you wonder if turnover/deal flow has slowed somewhat and firms are less concerned about attrition or feel that they have a handle on hiring again.

[Anonymous User]

Cravath matched the special bonuses this morning. Source: am cravath associate.

[Definitely Not North]

Cravath matched the special bonuses this morning. Source: am cravath associate.

are you guys salty about not leading the pack anymore (and that e.g. cadwallader associates make more than you if you both bill over 2200)?

[TigerIsBack]

Cravath matched the special bonuses this morning. Source: am cravath associate.

are you guys salty about not leading the pack anymore (and that e.g. cadwallader associates make more than you if you both bill over 2200)?

I'd also be interested to hear the perspective on this from a Cravath associate. Like are associates annoyed at leadership or what?

[clone22]

Cravath matched the special bonuses this morning. Source: am cravath associate.

are you guys salty about not leading the pack anymore (and that e.g. cadwallader associates make more than you if you both bill over 2200)?

Is this what kids these days call "big oof"?

[Anonymous User]

How likely are more special bonuses next year, and at what point does their frequency make them less "special?"

Idk. I was really convinced that the “special” component of these EOY bonuses would be paid at least at a slightly later date, like March, just to delat some of the inevitable January turnover that looks to be especially brutal this year.

Given that most firms will instead be paying out the entire thing at EOY, it makes you wonder if turnover/deal flow has slowed somewhat and firms are less concerned about attrition or feel that they have a handle on hiring again.

I’m guessing it’s a wait and see kind of decision. Once bonuses are paid and there’s associate churn in Q1, firms will evaluate whether they need to do the same thing as in 2021 with the multiple mid-year bonus structure to slow attrition.

[Anonymous User]

Proskauer match DPW scale.

[Anonymous User]

Anyone else annoyed that if you were a fifth year at Katten billing 2400+ (instead of, say, DPW), you would be getting 45k more bonus?

https://abovethelaw.com/2021/12/katten-bonuses-21/

[Anonymous User]

Hueston Hennigan calls are going out. Notwithstanding all the hype about above-market bonuses, seems like most people got only barely above DPW and many juniors didn’t get anywhere close to the 30% of base salary that used to be the firm’s starting point for bonuses. People are not thrilled, especially given the hours worked here compared to other firms.

[Anonymous User]

Aren't we still also waiting on Kirkland? They will surely match the new DPS special bonus, right? Only question is when that special bonus will be paid out?

[Anonymous User]

Aren't we still also waiting on Kirkland? They will surely match the new DPS special bonus, right? Only question is when that special bonus will be paid out?

Won't find out for a bit, announcements went out week before Christmas last year.

[Anonymous User]

Aren't we still also waiting on Kirkland? They will surely match the new DPS special bonus, right? Only question is when that special bonus will be paid out?

Kirkland always sends its (individualized, black box) bonus memos about a week before Christmas. They’ll beat the DPW scale (including special) and will be paid on 12/31.

Kirkland is never going to be a player in the market bonus wars. They wait for it to settle and then beat it by a little. That’s their well established MO.

[Anonymous User]

Aren't we still also waiting on Kirkland? They will surely match the new DPS special bonus, right? Only question is when that special bonus will be paid out?

Kirkland always sends its (individualized, black box) bonus memos about a week before Christmas. They’ll beat the DPW scale (including special) and will be paid on 12/31.

Kirkland is never going to be a player in the market bonus wars. They wait for it to settle and then beat it by a little. That’s their well established MO.

I don't know if I'd call it "beat it by a little." Last year my multiplier was about 1.35x which as a senior associate meant I got about $35,000 more than the Cravath base for billing around 2k hours. Kirkland had a great year last year and the multiplier reflected it. We're having a great year this year and presumably the multiplier will reflect it again. I have a feeling there are going to be a lot of 2x multipliers for people in transactional billing their 2,700 hours though I'll be fine with my 1.4x or whatever.

[Anonymous User]

Aren't we still also waiting on Kirkland? They will surely match the new DPS special bonus, right? Only question is when that special bonus will be paid out?

Kirkland always sends its (individualized, black box) bonus memos about a week before Christmas. They’ll beat the DPW scale (including special) and will be paid on 12/31.

Kirkland is never going to be a player in the market bonus wars. They wait for it to settle and then beat it by a little. That’s their well established MO.

I don't know if I'd call it "beat it by a little." Last year my multiplier was about 1.35x which as a senior associate meant I got about $35,000 more than the Cravath base for billing around 2k hours. Kirkland had a great year last year and the multiplier reflected it. We're having a great year this year and presumably the multiplier will reflect it again. I have a feeling there are going to be a lot of 2x multipliers for people in transactional billing their 2,700 hours or whatever, though I'll be perfectly happy with a 1.3x, 1.4x.

The average multiplier has been slowly but steadily slipping to the 1.2x range. A 20% premium isn’t massive (it’s also not nothing though) but I’m also curious if it will go back up this year considering what KE has done in 2021. Very high hours people could pull the average up all by themselves.

[Anonymous User]

Aren't we still also waiting on Kirkland? They will surely match the new DPS special bonus, right? Only question is when that special bonus will be paid out?

Kirkland always sends its (individualized, black box) bonus memos about a week before Christmas. They’ll beat the DPW scale (including special) and will be paid on 12/31.

Kirkland is never going to be a player in the market bonus wars. They wait for it to settle and then beat it by a little. That’s their well established MO.

I don't know if I'd call it "beat it by a little." Last year my multiplier was about 1.35x which as a senior associate meant I got about $35,000 more than the Cravath base for billing around 2k hours. Kirkland had a great year last year and the multiplier reflected it. We're having a great year this year and presumably the multiplier will reflect it again. I have a feeling there are going to be a lot of 2x multipliers for people in transactional billing their 2,700 hours or whatever, though I'll be perfectly happy with a 1.3x, 1.4x.

The average multiplier has been slowly but steadily slipping to the 1.2x range. A 20% premium isn’t massive (it’s also not nothing though) but I’m also curious if it will go back up this year considering what KE has done in 2021. Very high hours people could pull the average up all by themselves.

It's true that the average multiplier **before 2020** was slowly sliding toward a 1.2x for a 3 associate with 2,000 hours but the firm seemed to finally wake up and respond to that in 2020 given the combination of COVID + record profits. I expect that trend will continue in 2021.

There are stories from the "old days" where people were getting 2x, 2.5x, 3x multipliers but that was from a time when the firm was much smaller, more Chicago-focused, more litigation-focused and frankly just a different culture entirely. It would have been fun to have been here back then.

[Anonymous User]

There are stories from the "old days" where people were getting 2x, 2.5x, 3x multipliers but that was from a time when the firm was much smaller, more Chicago-focused, more litigation-focused and frankly just a different culture entirely. It would have been fun to have been here back then.

I think this about KE often, especially as a litigator, and more than one SP has made a comment that made me think they are salty about the way the firm has changed in the last 5, 10, 15 years. But it has a ruthless efficiency at maximizing PPP now so there's that.

[Anonymous User]

There are stories from the "old days" where people were getting 2x, 2.5x, 3x multipliers but that was from a time when the firm was much smaller, more Chicago-focused, more litigation-focused and frankly just a different culture entirely. It would have been fun to have been here back then.

I think this about KE often, especially as a litigator, and more than one SP has made a comment that made me think they are salty about the way the firm has changed in the last 5, 10, 15 years. But it has a ruthless efficiency at maximizing PPP now so there's that.

KE definitely made a choice about 10 years ago to pursue a strategy to become "the wealthiest firm in the world (fueled by transactional)" vs. "become the best litigation shop in the world but not as big" and there's a sort of two roads diverged in a wood moment there. There's an alt. history where KE in 2021 is like a much bigger version of Susman rather than "The Richest Firm in the World."

[Anonymous User]

What about Gibson Dunn? New managing partner, in NY, ready to come over the top?

(Sorry for any false hope)

-GDC Associate

[Anonymous User]

What about Gibson Dunn? New managing partner, in NY, ready to come over the top?

(Sorry for any false hope)

-GDC Associate

Another GDC associate here and the chance of GDC raising is 0%.

[Anonymous User]

There are stories from the "old days" where people were getting 2x, 2.5x, 3x multipliers but that was from a time when the firm was much smaller, more Chicago-focused, more litigation-focused and frankly just a different culture entirely. It would have been fun to have been here back then.

I think this about KE often, especially as a litigator, and more than one SP has made a comment that made me think they are salty about the way the firm has changed in the last 5, 10, 15 years. But it has a ruthless efficiency at maximizing PPP now so there's that.

KE definitely made a choice about 10 years ago to pursue a strategy to become "the wealthiest firm in the world (fueled by transactional)" vs. "become the best litigation shop in the world but not as big" and there's a sort of two roads diverged in a wood moment there. There's an alt. history where KE in 2021 is like a much bigger version of Susman rather than "The Richest Firm in the World."

As a potential lateral into KE on the litigation side, I would love to hear more about this. Do these posters above (or anyone with real experience with KE lit) think the culture there (on lit side) has deteriorated in some way from its past? Is there an inferiority complex vis-a-vis the transactional folks?

For example, one thing we sometimes hear about WLRK's lit is that it's in large part a service arm for their corporate side. Do folks at KE litigation think that way, sometimes, or has the firm moved in that sort of direction?

[Anonymous User]

Does anyone have experience how EOY bonuses are impacted if one took parental leave during the year (assuming the firm has no minimum billable requirement)?