Skadden Retention Bonuses Forum

[Anonymous User]

I don't doubt that many firms have done a better job at getting in laterals than Skadden, and may feel less pressure to match. But at least some of the elite NY firms have not hired anywhere near enough laterals, or even made an effort to do so. My firm is bleeding associates and we've hardly hired anyone. The firm seems to think they can just ride it out by staffing deals leaner and making everyone work more.

I think at least some of the V10/20 will match for two reasons. First, some top corporate practices are still badly understaffed and desperately need to keep the people they have. Second, how can you call yourself a peer of Skadden, or in some cases think you're a superior firm, when Skadden is paying their corporate associates 100K more than you?

[10b5-1]

I mean no way does Kirkland tell its associates that Skadden pays more for Corp associates. I just don't see that happening.

That's just exactly the thing though. Kirkland won't tell its associates anything at all, and will ignore or deny any evidence that retention bonuses exist unless Skadden releases a memo and makes it an official thing, which they aren't doing.

[Anonymous User]

I mean no way does Kirkland tell its associates that Skadden pays more for Corp associates. I just don't see that happening.

That's just exactly the thing though. Kirkland won't tell its associates anything at all, and will ignore or deny any evidence that retention bonuses exist unless Skadden releases a memo and makes it an official thing, which they aren't doing.

Unfortunately, I think this is the likely scenario. Skadden's not releasing a memo so current Kirkland associates can't really point to a smoking gun

[Anonymous User]

Sidley is doing $50k+ retention bonuses for certain senior corporate associates

[Anonymous User]

Sidley is doing $50k+ retention bonuses for certain senior corporate associates

Well this is pretty big. When are they being paid out? Can you define senior?

[Anonymous User]

Sidley is doing $50k+ retention bonuses for certain senior corporate associates

Well this is pretty big. When are they being paid out? Can you define senior?

This is going to sound ridiculous, but I've heard the same thing for Jenner corporate associates.

[Anonymous User]

I mean no way does Kirkland tell its associates that Skadden pays more for Corp associates. I just don't see that happening.

That's just exactly the thing though. Kirkland won't tell its associates anything at all, and will ignore or deny any evidence that retention bonuses exist unless Skadden releases a memo and makes it an official thing, which they aren't doing.

Unfortunately, I think this is the likely scenario. Skadden's not releasing a memo so current Kirkland associates can't really point to a smoking gun

Kirkland (and other firms I imagine) has already been doing individualized retention bonuses as needed. I know two midlevels who were offered large bonuses at K&E when they gave notice and said they were lateraling. One decided to stay; that associate is still around ~1 year later. There have to be more that I don't know about, as I'm not in one of the highest-demand groups anyway.

[Anonymous User]

I mean no way does Kirkland tell its associates that Skadden pays more for Corp associates. I just don't see that happening.

That's just exactly the thing though. Kirkland won't tell its associates anything at all, and will ignore or deny any evidence that retention bonuses exist unless Skadden releases a memo and makes it an official thing, which they aren't doing.

Unfortunately, I think this is the likely scenario. Skadden's not releasing a memo so current Kirkland associates can't really point to a smoking gun

Kirkland (and other firms I imagine) has already been doing individualized retention bonuses as needed. I know two midlevels who were offered large bonuses at K&E when they gave notice and said they were lateraling. One decided to stay; that associate is still around ~1 year later. There have to be more that I don't know about, as I'm not in one of the highest-demand groups anyway.

This is happening all over biglaw. Often it’s Kirkland who firms are fighting to keep associates from lateraling to.

Basically you give notice, firms freak out, and offer bonuses that are often way more than that person will get at year end. It’s probably why Skadden made these offers - because they’re sick of playing that game.

[Ultramar vistas]

I mean no way does Kirkland tell its associates that Skadden pays more for Corp associates. I just don't see that happening.

That's just exactly the thing though. Kirkland won't tell its associates anything at all, and will ignore or deny any evidence that retention bonuses exist unless Skadden releases a memo and makes it an official thing, which they aren't doing.

Unfortunately, I think this is the likely scenario. Skadden's not releasing a memo so current Kirkland associates can't really point to a smoking gun

Kirkland (and other firms I imagine) has already been doing individualized retention bonuses as needed. I know two midlevels who were offered large bonuses at K&E when they gave notice and said they were lateraling. One decided to stay; that associate is still around ~1 year later. There have to be more that I don't know about, as I'm not in one of the highest-demand groups anyway.

That’s completely different to what’s being discussed here.

Everyone is aware that if you make a serious and credible threat to leave, and you are a desirable candidate, firms have leeway to offer you money.

What’s Skadden is allegedly doing is group-wide, pre-emptive offerings that only pay out if you are employed in June 2022. That strategy, while I think k it’s a good one, is unheard of before now.

[Anonymous User]

I mean no way does Kirkland tell its associates that Skadden pays more for Corp associates. I just don't see that happening.

That's just exactly the thing though. Kirkland won't tell its associates anything at all, and will ignore or deny any evidence that retention bonuses exist unless Skadden releases a memo and makes it an official thing, which they aren't doing.

Unfortunately, I think this is the likely scenario. Skadden's not releasing a memo so current Kirkland associates can't really point to a smoking gun

Kirkland (and other firms I imagine) has already been doing individualized retention bonuses as needed. I know two midlevels who were offered large bonuses at K&E when they gave notice and said they were lateraling. One decided to stay; that associate is still around ~1 year later. There have to be more that I don't know about, as I'm not in one of the highest-demand groups anyway.

That’s completely different to what’s being discussed here.

Everyone is aware that if you make a serious and credible threat to leave, and you are a desirable candidate, firms have leeway to offer you money.

What’s Skadden is allegedly doing is group-wide, pre-emptive offerings that only pay out if you are employed in June 2022. That strategy, while I think k it’s a good one, is unheard of before now.

100% this. That said, it seems like Skadden meant for these bonuses not spread to other firms and set a new "standard" of bonuses. Hence the secrecy, lack of a memo, no comment to the press, etc.

I read this as a defensive play to protect Skadden's M&A midlevel and seniors associates. These bonuses will signal to headhunters, recruiters and the peer firms (and in-house employers) to which these associates might have considered jumping that their efforts would be better spent elsewhere. It will probably work--Skadden effectively raised the opportunity cost for those peer firms to recruit their M&A/PE midlevels. It will increase the heat on S&C, DPW, K&E and other M&A heavyweights. It signals the absolute money printer that Skadden's M&A/private equity practice has been the past couple years and that they expect to continue through 2022. It also signals that Skadden leadership cares more about the bottom line over the next year or so than the hit they will take internally because the resentment from other mid-levels in other practices that are receiving nothing. This is a pure Kirkland-type move by a firm that wants to put on pretenses that it has a "culture" worth preserving.

[Anonymous User]

I mean no way does Kirkland tell its associates that Skadden pays more for Corp associates. I just don't see that happening.

That's just exactly the thing though. Kirkland won't tell its associates anything at all, and will ignore or deny any evidence that retention bonuses exist unless Skadden releases a memo and makes it an official thing, which they aren't doing.

Unfortunately, I think this is the likely scenario. Skadden's not releasing a memo so current Kirkland associates can't really point to a smoking gun

Kirkland (and other firms I imagine) has already been doing individualized retention bonuses as needed. I know two midlevels who were offered large bonuses at K&E when they gave notice and said they were lateraling. One decided to stay; that associate is still around ~1 year later. There have to be more that I don't know about, as I'm not in one of the highest-demand groups anyway.

That’s completely different to what’s being discussed here.

Everyone is aware that if you make a serious and credible threat to leave, and you are a desirable candidate, firms have leeway to offer you money.

What’s Skadden is allegedly doing is group-wide, pre-emptive offerings that only pay out if you are employed in June 2022. That strategy, while I think k it’s a good one, is unheard of before now.

It's not that unheard of - we all got two bonuses to stick around until March/June and Sept/January. They didn't call them retention bonuses, but they were in effect, the exact same thing that Skadden is doing now.

[Anonymous User]

The "Special Covid Bonuses" were already basically retention bonuses by telling you they werent paying you for x months. It sounds now like they are just extending the "Special Bonus" for the busiest groups. I think what we are seeing is a shift in the big law bonus structure to a quarterly (or more frequently than yearly) retention bonus structure because it turned out only paying people at EOY was not having a strong enough effect.

I also think this will lead to more stratification because firms will be able to say, we pay less in April, but more in November, but less in december etc.

[Ultramar vistas]

I mean no way does Kirkland tell its associates that Skadden pays more for Corp associates. I just don't see that happening.

That's just exactly the thing though. Kirkland won't tell its associates anything at all, and will ignore or deny any evidence that retention bonuses exist unless Skadden releases a memo and makes it an official thing, which they aren't doing.

Unfortunately, I think this is the likely scenario. Skadden's not releasing a memo so current Kirkland associates can't really point to a smoking gun

Kirkland (and other firms I imagine) has already been doing individualized retention bonuses as needed. I know two midlevels who were offered large bonuses at K&E when they gave notice and said they were lateraling. One decided to stay; that associate is still around ~1 year later. There have to be more that I don't know about, as I'm not in one of the highest-demand groups anyway.

That’s completely different to what’s being discussed here.

Everyone is aware that if you make a serious and credible threat to leave, and you are a desirable candidate, firms have leeway to offer you money.

What’s Skadden is allegedly doing is group-wide, pre-emptive offerings that only pay out if you are employed in June 2022. That strategy, while I think k it’s a good one, is unheard of before now.

It's not that unheard of - we all got two bonuses to stick around until March/June and Sept/January. They didn't call them retention bonuses, but they were in effect, the exact same thing that Skadden is doing now.

Fair point - it’s definitely arising out of the same circumstances as led to the delayed Special Bonuses, and is a similar theme.

The secrecy, stratification, and size of bonus for juniors are new, though. Secrecy isn’t good for us all industry wide, and definitely signals that this one was focused solely on the practical reality of trying to hang on to existing mid levels and not signaling anything about prestige or recruiting - after all, you can’t brag about bonuses to 1Ls and 2Ls if you haven’t even admitted to your own litigation group that they exist.

Stratification I can get on board with if it forces the true sweatshops to actually pay more, but there’s always the risk that the end result is just that a whole swathe of V30 down firms that used to at least facially pay market finally give it up and let the big players carry on without them. Who knows. Just have to see it play out.

[POPTOP]

Did this thread get killed or die a natural death?

[Ultramar vistas]

Did this thread get killed or die a natural death?

Just fell out of the top active threads because of lack of activity I think. Looking for the swarm of Sidley associates to tell us all about their retention bonuses!

[Anonymous User]

Skadden raised 25% above other market firms and is the clear V2 behind WLKR

[Anonymous User]

Where are the Sidley and Jenner associates who supposedly are also getting these retention bonuses? Also where are the Skadden associates who are getting these? Everything here has been a second hand account. We haven’t heard from a single Skadden associate who themselves confirms this is real.

[Anonymous User]

Where are the Sidley and Jenner associates who supposedly are also getting these retention bonuses? Also where are the Skadden associates who are getting these? Everything here has been a second hand account. We haven’t heard from a single Skadden associate who themselves confirms this is real.

Skadden corporate associate here, received a call with a bonus.

Anon for obvious reasons.

[Buglaw]

Where are the Sidley and Jenner associates who supposedly are also getting these retention bonuses? Also where are the Skadden associates who are getting these? Everything here has been a second hand account. We haven’t heard from a single Skadden associate who themselves confirms this is real.

Skadden corporate associate here, received a call with a bonus.

Anon for obvious reasons.

Is the bonus in the range people are reporting?

[Anonymous User]

Where are the Sidley and Jenner associates who supposedly are also getting these retention bonuses? Also where are the Skadden associates who are getting these? Everything here has been a second hand account. We haven’t heard from a single Skadden associate who themselves confirms this is real.

Skadden corporate associate here, received a call with a bonus.

Anon for obvious reasons.

Heard bonuses are only in NY. What location are you in?

[Anonymous User]

Eric Friedman just confirmed retention bonuses.

[Anonymous User]

Where are the Sidley and Jenner associates who supposedly are also getting these retention bonuses? Also where are the Skadden associates who are getting these? Everything here has been a second hand account. We haven’t heard from a single Skadden associate who themselves confirms this is real.

Skadden corporate associate here, received a call with a bonus.

Anon for obvious reasons.

Is the bonus in the range people are reporting?

Also receiving one. Can confirm all the amounts, etc. in this thread appear accurate.

[Anonymous User]

Eric Friedman just confirmed retention bonuses.

Confirmed them in what way? Did he confirm amounts and who is receiving them, or just that they exist?

[Anonymous User]

Eric Friedman just confirmed retention bonuses.

Was a memo sent out to the firm? Or at least to the associates who are receiving the bonuses?

[Anonymous User]

Eric Friedman just confirmed retention bonuses.

Confirmed them in what way? Did he confirm amounts and who is receiving them, or just that they exist?

No memo. Video. Went to all associates.

Video was 6 minutes, basically said: "We know you all saw the ATL article and there are rumors about retention bonuses. Here's what's happening: it's expensive to hire laterals, it sucks to lose current associates, and other firms were poaching our M&A and cap markets associates. So we are paying retention bonuses to them, and only them, and otherwise you're out of luck. But we increased salaries and paid special bonuses across the board, and we will keep paying lockstep in general, and you shouldn't read into these bonuses as saying anything other than "we hate having our people poached and it was really killing us."

He didn't talk about size of the bonuses or anything. He said that only approx 15% of the firm's associates are receiving them.