2014 Biglaw Bonus Thread Forum

[Old Gregg]

wooooo Paul Weiss

http://abovethelaw.com/2014/11/associat ... s-simpson/

IMO the most important match will be the first firm with a PPP under $2M.

Not really

[run26.2]

Firms that currently match the STB associate compensation structure will be expected to fall in line or admit not being peers with STB or PW.

I think it is not as much an admission as it is being willing to run the risk of being thought of as not being a compensation leader. Cravath not matching Skadden in 2008 is the prime example. Also, some of the top Vault firms do not pay the highest bonus to clerks which, though different than regular bonuses, lends support to the notion that they believe their reputation is in some ways divorced from their bonuses.

[B.B. Homemaker]

wooooo Paul Weiss

http://abovethelaw.com/2014/11/associat ... s-simpson/

IMO the most important match will be the first firm with a PPP under $2M.

Not really

Care to expand a bit? I'd be interested to hear your theory on that.

[Monochromatic Oeuvre]

wooooo Paul Weiss

http://abovethelaw.com/2014/11/associat ... s-simpson/

IMO the most important match will be the first firm with a PPP under $2M.

Not really

If not, you're suggesting it's a foregone conclusion that everybody is matching this.

[KM2016]

Safe to say that most (maybe even all) firms with $2mil + PPP will match? Maybe even start a bidding war?

[Old Gregg]

wooooo Paul Weiss

http://abovethelaw.com/2014/11/associat ... s-simpson/

IMO the most important match will be the first firm with a PPP under $2M.

Not really

If not, you're suggesting it's a foregone conclusion that everybody is matching this.

I don't think me denying your original conclusion necessitates this. Think harder.

[B.B. Homemaker]

Oh, so Cravath.

[Desert Fox]

Oh, so Cravath.

I'd assume he means 2M PPP is an arbitrary line and many firms below it can afford and will pay it.

[2014]

How do y'all think the conversation at Paul Weiss went down? Like Simpson clearly had the chance to talk this out at a partners meeting but given the timeline from PW and it being a Friday, the odds of them being able to get a physically present quorum has to be not great right? Wonder if they have a list of firms they have a standing agreement to match, whether the compensation/management committee just made the unilateral call that they were sure would be made anyway, or whether there was like an urgent email/phone campaign saying "you have 10 min to object" or something.

Probably the only one curious about this shit lol

[Desert Fox]

How do y'all think the conversation at Paul Weiss went down? Like Simpson clearly had the chance to talk this out at a partners meeting but given the timeline from PW and it being a Friday, the odds of them being able to get a physically present quorum has to be not great right? Wonder if they have a list of firms they have a standing agreement to match, whether the compensation/management committee just made the unilateral call that they were sure would be made anyway, or whether there was like an urgent email/phone campaign saying "you have 10 min to object" or something.

Probably the only one curious about this shit lol

I doubt they have every partner vote on it.

[B.B. Homemaker]

Oh, so Cravath.

I'd assume he means 2M PPP is an arbitrary line and many firms below it can afford and will pay it.

See, this is better than the whole socratic "figure it out for yourself" method of posting.

[sinfiery]

Do bonuses get added onto a paycheck (aggregate method - marginal tax rate) or are they their own check? (Percentage method tax - 25%)?

http://blog.turbotax.intuit.com/2013/11 ... alculator/

[Old Gregg]

Oh, so Cravath.

I'd assume he means 2M PPP is an arbitrary line and many firms below it can afford and will pay it.

See, this is better than the whole socratic "figure it out for yourself" method of posting.

Sorry. I'm not trying to be a dick. I'm just too busy to type a long post about this only to have someone come back and argue with like three lines, and then for me to go back and do the same. But DF was getting at it (and there are a whole host of other reasons too, I think). Overall, his statement is just wrong. It's also dumb. But it's bonus season and we're all emotional, so everyone gets a bye.

[run26.2]

How do y'all think the conversation at Paul Weiss went down? Like Simpson clearly had the chance to talk this out at a partners meeting but given the timeline from PW and it being a Friday, the odds of them being able to get a physically present quorum has to be not great right? Wonder if they have a list of firms they have a standing agreement to match, whether the compensation/management committee just made the unilateral call that they were sure would be made anyway, or whether there was like an urgent email/phone campaign saying "you have 10 min to object" or something.

Probably the only one curious about this shit lol

You think the partners at the different firms don't talk to one another?

[Desert Fox]

How do y'all think the conversation at Paul Weiss went down? Like Simpson clearly had the chance to talk this out at a partners meeting but given the timeline from PW and it being a Friday, the odds of them being able to get a physically present quorum has to be not great right? Wonder if they have a list of firms they have a standing agreement to match, whether the compensation/management committee just made the unilateral call that they were sure would be made anyway, or whether there was like an urgent email/phone campaign saying "you have 10 min to object" or something.

Probably the only one curious about this shit lol

You think the partners at the different firms don't talk to one another?

Colluding on compensation sounds pretty risky.

[mvp99]

How do y'all think the conversation at Paul Weiss went down? Like Simpson clearly had the chance to talk this out at a partners meeting but given the timeline from PW and it being a Friday, the odds of them being able to get a physically present quorum has to be not great right? Wonder if they have a list of firms they have a standing agreement to match, whether the compensation/management committee just made the unilateral call that they were sure would be made anyway, or whether there was like an urgent email/phone campaign saying "you have 10 min to object" or something.

Probably the only one curious about this shit lol

You think the partners at the different firms don't talk to one another?

Colluding on compensation sounds pretty risky.

[run26.2]

It need not even be mentioned that many biglaw firms already set compensation at the same level: 160. They could easily set up structures in advance to deal with an early mover, e.g., voting in advance to approve a match of any other firm's announced bonuses up to a certain amount. Doing this would make sense for a firm that was having a great year, but was perhaps not mentioned among the very top firms and were hoping to improve their reputation in that regard. Not saying this is what happened, but it's one way it could have.

[mvp99]

Cleary matched
http://abovethelaw.com/2014/11/associat ... simpson/2/

[Hutz_and_Goodman]

Cleary matched
http://abovethelaw.com/2014/11/associat ... s-simpson/

This is such great news. Even if the firms are desperately clutching at $160k starting this kind of bonus structure makes a difference.

[mvp99]

and I think Cleary's hasn't been doing extremely well this past couple of years

[Old Gregg]

It has nothing to do with doing well. Biglaw firms don't act like businesses.

[Anonymous User]

How do y'all think the conversation at Paul Weiss went down? Like Simpson clearly had the chance to talk this out at a partners meeting but given the timeline from PW and it being a Friday, the odds of them being able to get a physically present quorum has to be not great right? Wonder if they have a list of firms they have a standing agreement to match, whether the compensation/management committee just made the unilateral call that they were sure would be made anyway, or whether there was like an urgent email/phone campaign saying "you have 10 min to object" or something.

Probably the only one curious about this shit lol

I doubt they have every partner vote on it.

Firms have comp committees. They mostly deal with partner comp but also determine associate salaries, bonuses, etc. Presumably the PW comp committee met (perhaps in an "emergency" meeting or just a phone call) and decided to match. It's also possible that they knew STB was going to increase bonuses beforehand, but I agree that's unlikely.

[patagonia93]

Awesome. Pretty much guarantees every major New York player will follow. WILL CRAVATH, SKADDEN, S&C OR DPW TOP IT?!!!

[Anonymous User]

Do bonuses get added onto a paycheck (aggregate method - marginal tax rate) or are they their own check? (Percentage method tax - 25%)?

http://blog.turbotax.intuit.com/2013/11 ... alculator/

Separate check, at least at STB. Probably true at most firms.

[84651846190]

Awesome. Pretty much guarantees every major New York player will follow. WILL CRAVATH, SKADDEN, S&C OR DPW TOP IT?!!!

No one will top it. Pump the breaks there, champ.