EOY Bonuses Forum

[Anonymous User]

We recently had a meeting with our practice leader, and he thought we’re lucky the bonuses didn’t decrease given 2021 was such a bumper year (ignoring nonpayment of special bonuses, of course). I cannot believe that’s the mentality from some out there, but here we are…Baker did us a favor by setting the floor early on.

Did anyone pipe up and say “but bonuses have decreased given absence of all three special bonuses from last year?”

[Anonymous User]

We recently had a meeting with our practice leader, and he thought we’re lucky the bonuses didn’t decrease given 2021 was such a bumper year (ignoring nonpayment of special bonuses, of course). I cannot believe that’s the mentality from some out there, but here we are…Baker did us a favor by setting the floor early on.

Did anyone pipe up and say “but bonuses have decreased given absence of all three special bonuses from last year?”

Nope, we’re all too chicken (including me).

[Anonymous User]

We recently had a meeting with our practice leader, and he thought we’re lucky the bonuses didn’t decrease given 2021 was such a bumper year (ignoring nonpayment of special bonuses, of course). I cannot believe that’s the mentality from some out there, but here we are…Baker did us a favor by setting the floor early on.

Did anyone pipe up and say “but bonuses have decreased given absence of all three special bonuses from last year?”

Nope, we’re all too chicken (including me).

Well the next time he asks remind him senior associates will have received $87,000 less in bonus payments this year vs last. Ask him if his equity payout has gone down like that. This head in the sand boomer partner bullshit just pisses me off.

[Anonymous User]

I like how the guy who accused someone else of arguing too much continues to argue, even though the point is pretty clear.

[Anonymous User]

Law firms don’t have “bonuses” in the colloquial sense of the term; it’s functionally just deferred comp that associates would have almost entirely earned if it were all paid evenly. Firms of course love making more of this comp discretionary so they can pull exactly this sort of bullshit.

The tech version is getting fired right before RSUs/options vest. As I’m sure you’re aware in the industry, companies have done that on a much more massive scale this year, and workers have rightly been furious.

This is just a bunch of words. How is it "functionally just deferred comp"? What is a "bonus" in the colloquial sense of the term? When is a year-end "bonus" ever not "functionally just deferred comp"? When were there mass tech layoffs solely of people who were just about to hit their cliffs?

If a bonus

(1) is consistently paid to a large majority of eligible employees, such that people reasonably anticipate getting one when making employment decisions [typically 80% of FTE associates get them even at firms with minimums]

(2) has defined criteria for its eligibility [almost always hours]

and (3) those criteria exclusively relate to past performance,

then it’s effectively deferred comp.

This contrasts with the colloquial understanding of a “bonus” being something not regularly earned, or earned only for performance considered well above the norm.

Does that help?

Not the guy you’re responding to but splitting hairs between deferred comp and bonuses is semantics.

Law is culturally different from most industries, and tbh, people go absolutely rip shit over the concept that you receive decreased bonuses for fewer hours.

Call it what you like, but smart money says that everyone would prefer the lockstep “deferred comp” approach that is largely hours-agnostic than an approach that rewards strictly based on hours billed or one that rewards largely or strictly based on an amorphous concept of “merit” divorced from hours.

[Anonymous User]

Proskauer. Posting because in years past people liked to speculate on New Orleans and Boca Raton offices not being included on the main memo. Boca is indeed a black box. Here’s the Boca memo:

Proskauer»

Re: 2022 Year-End Bonuses
Boca Raton Associates
Executive Committee
December 8, 2022
Intraoffice Memo
We are pleased to announce that we will pay year-end bonuses on or about December 23, 2022. To associates in Boca Raton who are employed and in good standing on that date and who have met the Firm's traditional performance criteria for associates of their seniority. Associates on reduced schedules or approved leaves or who joined after January 1, 2022, will be eligible for
pro-rated bonuses. Consistent with past practice, your office and/or department leadership will communicate your
bonus amount to you individually on or before December 19, 2022. Thank you for your ongoing efforts to advance the Firm and your own careers by providing the highest level of client service, as well as key support to our DEI, Pro Bono and citizenship-based initiatives, and to each other.

Happy holidays to you and your loved ones, and best wishes for a healthy and prosperous New Year

[Anonymous User]

Did I miss it or has Millbank not announced bonuses yet? Also seems like there’s only been a trickle of firms announcing over the past week…

[TigerIsBack]

Did I miss it or has Millbank not announced bonuses yet? Also seems like there’s only been a trickle of firms announcing over the past week…

Yes you missed it

[Anonymous User]

Chill Knicks in-house "guy" (pretty misogynistic of you to assume my gender!) here -- those last few anon posts weren't me, I haven't been on my computer since that post I made at 4:30 eastern. I know that's tough for you biglaw cogs to fathom.

I went in-house this year as a 7th year, am fortunate to have negotiated a nice salary and guaranteed bonus and am here purely because I’ve been engrained in BigLaw for so long and am curious as to what is coming for my friends/colleagues/potential partners if I had stayed. I’m waiting for Cravath to come back over the top because why not. What on earth are you so angry about unless you just wanted to be a partner and didn’t make it? Let the thread focus on the people who it actually impacts (and yes, I’m now signing off on bills for V10 firms and no I don’t care what their bonus is other than that was me 8 months ago so I hope they’re taken care of for their efforts).

[Anonymous User]

Chill Knicks in-house "guy" (pretty misogynistic of you to assume my gender!) here -- those last few anon posts weren't me, I haven't been on my computer since that post I made at 4:30 eastern. I know that's tough for you biglaw cogs to fathom.

I went in-house this year as a 7th year, am fortunate to have negotiated a nice salary and guaranteed bonus and am here purely because I’ve been engrained in BigLaw for so long and am curious as to what is coming for my friends/colleagues/potential partners if I had stayed. I’m waiting for Cravath to come back over the top because why not. What on earth are you so angry about unless you just wanted to be a partner and didn’t make it? Let the thread focus on the people who it actually impacts (and yes, I’m now signing off on bills for V10 firms and no I don’t care what their bonus is other than that was me 8 months ago so I hope they’re taken care of for their efforts).

Angry? lol

[Anonymous User]

Apparently Selendy Gay announced higher bonuses than scale? I know a litigation boutique and not likely to change other firm's minds, but worth noting.

[Anonymous User]

To answer the question of whether equity partner comp is down this year: obviously depends on firm, and final results aren’t in, but I do not know a single equity partner at any firm whose comp ytd isn’t down, including mine, and I don’t see it getting better.

People saying bonuses haven’t gone down are silly because of course they have given lack of special bonuses. But hours are down too. The sense of entitlement over bonuses is amazing. The comp people are getting this year is fair and, frankly, if firms wanted to, they could’ve cut bonuses more without having much concern about retention (unlike the few past years). I’m not saying “be thankful for what you got” because I hate equity partners that have that view, but, I will say, be realistic about the market conditions and consider that bonuses are fine in light of them.

[Anonymous User]

To answer the question of whether equity partner comp is down this year: obviously depends on firm, and final results aren’t in, but I do not know a single equity partner at any firm whose comp ytd isn’t down, including mine, and I don’t see it getting better.

People saying bonuses haven’t gone down are silly because of course they have given lack of special bonuses. But hours are down too. The sense of entitlement over bonuses is amazing. The comp people are getting this year is fair and, frankly, if firms wanted to, they could’ve cut bonuses more without having much concern about retention (unlike the few past years). I’m not saying “be thankful for what you got” because I hate equity partners that have that view, but, I will say, be realistic about the market conditions and consider that bonuses are fine in light of them.

Right we the associates are the entitled ones. We should be on our hands and knees thanking the partner gods for such fair and considerate bonuses. What a refreshing reminder how awful partners are. This also isn’t true re profits. Unless your in leveraged finance.

[ChickenSalad]

The sense of entitlement over bonuses is amazing. The comp people are getting this year is fair and, frankly, if firms wanted to, they could’ve cut bonuses more without having much concern about retention (unlike the few past years). I’m not saying “be thankful for what you got” ….

That…seems like exactly what you’re saying

I didn’t expect another round of special bonuses or even for an increase of the regular bonus scale. But to say that partners could have justifiably *cut* bonuses (and chose not to) makes it sound like you’re doing us a favor.

[Anonymous User]

Cutting the bonus may well have been the original plan. But thankfully Baker McKenzie stepped up and showed misers like Cravath how a top tier firm acts to attract the brightest legal talent.

[Anonymous User]

To answer the question of whether equity partner comp is down this year: obviously depends on firm, and final results aren’t in, but I do not know a single equity partner at any firm whose comp ytd isn’t down, including mine, and I don’t see it getting better.

People saying bonuses haven’t gone down are silly because of course they have given lack of special bonuses. But hours are down too. The sense of entitlement over bonuses is amazing. The comp people are getting this year is fair and, frankly, if firms wanted to, they could’ve cut bonuses more without having much concern about retention (unlike the few past years). I’m not saying “be thankful for what you got” because I hate equity partners that have that view, but, I will say, be realistic about the market conditions and consider that bonuses are fine in light of them.

Right we the associates are the entitled ones. We should be on our hands and knees thanking the partner gods for such fair and considerate bonuses. What a refreshing reminder how awful partners are. This also isn’t true re profits. Unless your in leveraged finance.

I didn't say that either. I said "consider that bonuses are fine" considering market conditions, where layoffs are rampant in corporate America, bankers are getting laid off and have had massive cuts to their bonuses, etc. I just made equity in the last couple of years, so I am not some detached-from-reality boomer, I'm just clear-eyed about the current market.

Not sure where you're getting your info re: profits but, suffice to say, this isn't just some random guess, and I'm talking about a firm-wide perspective, not a practice-specific perspective.

Keep frothing at the mouth at your unjust bonuses, though. As a class of 2011 person, it's pretty hard to have all that much sympathy for the current crop of associates as far as comp is concerned.

[ChickenSalad]

Keep frothing at the mouth at your unjust bonuses, though. As a class of 2011 person, it's pretty hard to have all that much sympathy for the current crop of associates as far as comp is concerned.

Again, remind me how you aren’t telling us that we’re lucky to have what we get?

[Anonymous User]

Keep frothing at the mouth at your unjust bonuses, though. As a class of 2011 person, it's pretty hard to have all that much sympathy for the current crop of associates as far as comp is concerned.

Again, remind me how you aren’t telling us that we’re lucky to have what we get?

Apparently the “subtle” distinction between “you got an appropriate bonus” and “you are lucky to get what you have, worm” is too much for you to grasp, so, eh.

[Anonymous User]

To answer the question of whether equity partner comp is down this year: obviously depends on firm, and final results aren’t in, but I do not know a single equity partner at any firm whose comp ytd isn’t down, including mine, and I don’t see it getting better.

People saying bonuses haven’t gone down are silly because of course they have given lack of special bonuses. But hours are down too. The sense of entitlement over bonuses is amazing. The comp people are getting this year is fair and, frankly, if firms wanted to, they could’ve cut bonuses more without having much concern about retention (unlike the few past years). I’m not saying “be thankful for what you got” because I hate equity partners that have that view, but, I will say, be realistic about the market conditions and consider that bonuses are fine in light of them.

Right we the associates are the entitled ones. We should be on our hands and knees thanking the partner gods for such fair and considerate bonuses. What a refreshing reminder how awful partners are. This also isn’t true re profits. Unless your in leveraged finance.

I didn't say that either. I said "consider that bonuses are fine" considering market conditions, where layoffs are rampant in corporate America, bankers are getting laid off and have had massive cuts to their bonuses, etc. I just made equity in the last couple of years, so I am not some detached-from-reality boomer, I'm just clear-eyed about the current market.

Not sure where you're getting your info re: profits but, suffice to say, this isn't just some random guess, and I'm talking about a firm-wide perspective, not a practice-specific perspective.

Keep frothing at the mouth at your unjust bonuses, though. As a class of 2011 person, it's pretty hard to have all that much sympathy for the current crop of associates as far as comp is concerned.

Sorry to hear your firm is underperforming. I know for a fact that our firm profits have increased. So it may be a question of your firm’s overall strategy.

[Monochromatic Oeuvre]

The sense of entitlement over bonuses is amazing. The comp people are getting this year is fair and, frankly, if firms wanted to, they could’ve cut bonuses more without having much concern about retention (unlike the few past years). I’m not saying “be thankful for what you got” because I hate equity partners that have that view, but, I will say, be realistic about the market conditions and consider that bonuses are fine in light of them.

The sense of entitlement over my nights and weekends is amazing. The hours my firm is getting this year are fair and, frankly, if I wanted to, I could’ve billed much less without having much concern about being fired. I’m not saying “be thankful I even give half a fuck about these ancillaries” because I hate associates that have that view, but, I will say, be realistic about the market conditions and consider that me not answering emails until 11 AM is fine in light of them.

[ChickenSalad]

Keep frothing at the mouth at your unjust bonuses, though. As a class of 2011 person, it's pretty hard to have all that much sympathy for the current crop of associates as far as comp is concerned.

Again, remind me how you aren’t telling us that we’re lucky to have what we get?

Apparently the “subtle” distinction between “you got an appropriate bonus” and “you are lucky to get what you have, worm” is too much for you to grasp, so, eh.

You said that firms could’ve *justifiably* cut associate bonuses without any repercussions. But they didn’t and we should be satisfied with our bonuses under the circumstances (or “in this economy”)

I fully expected the same bonus scale as last year. But only one of us argued that cutting bonuses would have been defensible. If that doesn’t mean “be happy with what you got” then I don’t know what does

[Anonymous User]

To answer the question of whether equity partner comp is down this year: obviously depends on firm, and final results aren’t in, but I do not know a single equity partner at any firm whose comp ytd isn’t down, including mine, and I don’t see it getting better.

People saying bonuses haven’t gone down are silly because of course they have given lack of special bonuses. But hours are down too. The sense of entitlement over bonuses is amazing. The comp people are getting this year is fair and, frankly, if firms wanted to, they could’ve cut bonuses more without having much concern about retention (unlike the few past years). I’m not saying “be thankful for what you got” because I hate equity partners that have that view, but, I will say, be realistic about the market conditions and consider that bonuses are fine in light of them.

What is this shit? I’m at a V10. Our YoY profits will be mildly up (think single digit increase). Corollary: the percentage of revenue going to comp this year for lack of special bonuses plus a cooling lateral market will be meaningfully lower vs the percentage of revenue going to comp last year. In other words, your premise is just wrong.

[Anonymous User]

An equity partner told us to stop frothing at the mouth because his firms YoY profits didn’t go up. What a pleasant reminder of how ridiculously out of touch you people continue to be.

[Anonymous User]

An equity partner told us to stop frothing at the mouth because his firms YoY profits didn’t go up. What a pleasant reminder of how ridiculously out of touch you people continue to be.

"Hey, you putzes, I made $4m in 2021 and I made $4m in 2022. Profit isn't up a cent. So get used to some hard fucking times ahead. We all need to tighten our belts, starting with you, of course."

[Anonymous User]

Lots of ppl I know are getting pay raises to combat the high inflation environment. Meanwhile, we apparently should be happy to take a pay CUT. Equity partners are totally clueless. At some point, giving your life to a job that demands so much is no longer worth it.