2019 - Bonus Speculation Thread Forum

[BlackAndOrange84]

It's possible the bonus scale gets up'd this year. If you start cutting bonuses in a recession, you'll lose your top guys

This thread needs more smart takes like this. Keep em coming.

This is the 200iq take we need.

[notinbiglaw]

Play golf and tell people you're mining prospects.

[lionelhutz123]

Bonus season is fast approaching. The market bonus scale has been stagnant now for four years, though there have been base scale increases/summer bonuses in that time period.

What are people thinking and hearing as far as 2019?

[LaLiLuLeLo]

flat

[lionelhutz123]

I'd say 50% chance flat; 50% a 10% increase. Market has been doing well, and no summer bonuses or salary increase, so a modest increase ($5-10k for juniors; $10-20k for seniors) seems plausible.

[MillllerTime]

In Gunderson we trust.

[Anonymous User]

Milbank just announced flat bonuses.

[NoLongerALurker]

Surely just waiting for a big name to come over the top on them.

[Anonymous User]

seems like the super early announcement is an attempt to keep other firms from raising. Trying not to be too optimistic, but in 2014 I think there was a lot of discontent among associates about comp levels and Simpson's early announcement and small raise seemed like a way for them to set the market and avoid a firm giving a bigger bump. Then Davis Polk swooped in and raised anyway.

I'm not saying that's likely to happen, but at my NYC V10, we were all pretty surprised that the firm didn't match Gunderson and there's definitely some amount of expectation among the associate ranks that the firm will make it right here.

[lionelhutz123]

Yeah, this feels a little weak. It's so early. They're trying to keep things low. Maybe their bottom line was punished when they pushed harder last year? Anyways, hope another firm comes over the top soon. I bet a lot of firms will wait to match until Cravath, DPW, S&C, etc. do something.

[Anonymous User]

Yeah, this feels a little weak. It's so early. They're trying to keep things low. Maybe their bottom line was punished when they pushed harder last year? Anyways, hope another firm comes over the top soon. I bet a lot of firms will wait to match until Cravath, DPW, S&C, etc. do something.

Maybe. Or maybe the partners are just greedy. In the most recent year for which AmLaw published data, PPEP was up basically across the board. They're just not sharing. https://www.law.com/americanlawyer/2019 ... y-partner/

Last year, my firm did a rate increase effective 7/1 (i.e., the same date the raises took effect). Assuming associates worked 2,000 hours, the rate increase actually meant the firm came out ahead even after accounting for higher salaries.

[rahulg91]

Yeah, this feels a little weak. It's so early. They're trying to keep things low. Maybe their bottom line was punished when they pushed harder last year? Anyways, hope another firm comes over the top soon. I bet a lot of firms will wait to match until Cravath, DPW, S&C, etc. do something.

Holding out hope brothas

[dabigchina]

it's hardly breaking news that partners are greedy. I always think it's funny when these threads devolve into "they'll share the wealth because it's FAIR." since when has any of this been about fairness?

[Anonymous User]

it's hardly breaking news that partners are greedy. I always think it's funny when these threads devolve into "they'll share the wealth because it's FAIR." since when has any of this been about fairness?

I'm the person that called them greedy above. I am completely in agreement with you that this isn't about fairness and that it's not news that people who charge $1,500/hr for advice are greedy.

My comment was simply responding to the assertion about Milbank's bottom line being pinched by the raise. I think there are plenty of reasons a bonus raise is not guaranteed to happen, but wanted to clarify that law firms' bottom lines being hit isn't one of those reasons.

[Note to mods that this ties back to the earlier confidential information above. Please don't out.]

[dyemond]

Everyone is expecting a market correction - it could be that firms want to increase partner draws or firms could be padding cash to flatten out a potentially lumpy 2020, maybe 2021.

[Anonymous User]

Everyone is expecting a market correction - it could be that firms want to increase partner draws or firms could be padding cash to flatten out a potentially lumpy 2020, maybe 2021.

Lowering bonuses and laying off associates, both of which I fully expect at my firm, will also help flatten out firms' results.

[malibustacy]

Milbank back to V50 or wherever it was before. Reminds me of when Covington tried to stop DC firms from going to 190,000 by announcing early, but had to backtrack when every firm raised anyway.

[dabigchina]

it's hardly breaking news that partners are greedy. I always think it's funny when these threads devolve into "they'll share the wealth because it's FAIR." since when has any of this been about fairness?

I'm the person that called them greedy above. I am completely in agreement with you that this isn't about fairness and that it's not news that people who charge $1,500/hr for advice are greedy.

My comment was simply responding to the assertion about Milbank's bottom line being pinched by the raise. I think there are plenty of reasons a bonus raise is not guaranteed to happen, but wanted to clarify that law firms' bottom lines being hit isn't one of those reasons.

[Note to mods that this ties back to the earlier confidential information above. Please don't out.]

Yep, totally agree. My comment wasn't aimed at you, but more at the poster above you who thought that partners would make us whole for that summer bonus. that's never gonna happen. I could see why you thought I was responding to you, given how i phrased it.

[ghostoftraynor]

it's hardly breaking news that partners are greedy. I always think it's funny when these threads devolve into "they'll share the wealth because it's FAIR." since when has any of this been about fairness?

I'm the person that called them greedy above. I am completely in agreement with you that this isn't about fairness and that it's not news that people who charge $1,500/hr for advice are greedy.

My comment was simply responding to the assertion about Milbank's bottom line being pinched by the raise. I think there are plenty of reasons a bonus raise is not guaranteed to happen, but wanted to clarify that law firms' bottom lines being hit isn't one of those reasons.

[Note to mods that this ties back to the earlier confidential information above. Please don't out.]

Yep, totally agree. My comment wasn't aimed at you, but more at the poster above you who thought that partners would make us whole for that summer bonus. that's never gonna happen. I could see why you thought I was responding to you, given how i phrased it.

Fingers crossed for being made whole

[Tenzen]

Word on the streets is that Latham, instead of Lathaming its associates, will Latham the Milbank raise to make up for its past. Latham to 25K-150K bonuses.

[rahulg91]

Word on the streets is that Latham, instead of Lathaming its associates, will Latham the Milbank raise to make up for its past. Latham to 25K-150K bonuses.

C'mon Latham, here's the one chance to entice law students into joining next recession's Lathaming victims!

[yodamiked]

Word on the streets is that Latham, instead of Lathaming its associates, will Latham the Milbank raise to make up for its past. Latham to 25K-150K bonuses.

Can you give any more background to this "word on the street"? I highly doubt we see a bump this year, but man do I hope we do.

[QContinuum]

Word on the streets is that Latham, instead of Lathaming its associates, will Latham the Milbank raise to make up for its past. Latham to 25K-150K bonuses.

Can you give any more background to this "word on the street"? I highly doubt we see a bump this year, but man do I hope we do.

I thought Tenzen was just cracking a (bad) joke. But I hope your reading is correct!

[Wild Card]

Word on the streets is that Latham, instead of Lathaming its associates, will Latham the Milbank raise to make up for its past. Latham to 25K-150K bonuses.

It's appalling that it never suffered any backlash for that massacre. V5!

[sucsuroc]

Word on the streets is that Latham, instead of Lathaming its associates, will Latham the Milbank raise to make up for its past. Latham to 25K-150K bonuses.

It's appalling that it never suffered any backlash for that massacre. V5!

They suffered backlash for a few years -- during my 1L summer, a Latham alum talked me out of applying -- but it's surprising that it wasn't longer-lasting. I was at lunch with some summers this year who didn't even know what had happened.