Lateraling - Year End and Signing Bonus Forum

[Anonymous User]

What happens to your bonus (from the new firm) when you lateral? Is it standard to receive the full amount based on your class year, a pro rated amount or otherwise? Are signing bonuses standard when you lateral? If so, what is typical (general info or amounts by class year is welcomed)?

[Anonymous User]

What happens to your bonus (from the new firm) when you lateral? Is it standard to receive the full amount based on your class year, a pro rated amount or otherwise? Are signing bonuses standard when you lateral? If so, what is typical (general info or amounts by class year is welcomed)?

For year-end bonuses, my firm gives laterals either a pro rated bonus or the bonus they would qualify for based on their hours.

When I lateraled I had four offers. One firm offered a pretty nice signing bonus ($25,000 as a second year plus guaranteed full year-end bonus). No signing bonus for the other firms. I don't think signing bonuses are standard for associates, unless the recruiter is offering one (some do).

[Anonymous User]

What happens to your bonus (from the new firm) when you lateral? Is it standard to receive the full amount based on your class year, a pro rated amount or otherwise? Are signing bonuses standard when you lateral? If so, what is typical (general info or amounts by class year is welcomed)?

For year-end bonuses, my firm gives laterals either a pro rated bonus or the bonus they would qualify for based on their hours.

When I lateraled I had four offers. One firm offered a pretty nice signing bonus ($25,000 as a second year plus guaranteed full year-end bonus). No signing bonus for the other firms. I don't think signing bonuses are standard for associates, unless the recruiter is offering one (some do).

Thanks for this. On the year-end bonus, when you say "bonus they would qualify for based on their hours", do you mean they extrapolate based on the time worked and determine how many hours that would be on an annual basis (e.g. you work 200 hours each month from July to December and they figure that's a 2400 year)?

[Anonymous User]

Bonuses (full year end and signing) depend of location, firm, seniority and group (all about demand). Is a 2nd yr lit assc going to get a signing bonus from a NY Firm? Probably No. From 2012-2015 did plenty of 3rd-7th yr corporate associates get 25k - 150k signing bonuses to move to Texas? Yes.

When I lateraled, I negotiated a full year end bonus at my new firm and depending on the timing of your move you should be able to do the same.

[Anonymous User]

Thanks for this. On the year-end bonus, when you say "bonus they would qualify for based on their hours", do you mean they extrapolate based on the time worked and determine how many hours that would be on an annual basis (e.g. you work 200 hours each month from July to December and they figure that's a 2400 year)?

No, I mean if the firm requires you to hit a minimum number of hours to receive a full bonus, you get either (i) the full bonus if you also hit the minimum number of hours during the partial year with the firm or (ii) a pro rated bonus based on how long you were actually with the firm. There is a point in the year when it becomes effectively impossible to get a full bonus, but when that is depends on you tolerance for pain.

Bonuses (full year end and signing) depend of location, firm, seniority and group (all about demand).

This is the right answer. Firms all have different policies and vary those policies based on market conditions.