Skadden Retention Bonuses Forum

[Anonymous User]

This is a GENIUS move by Skadden. I honestly doubt they’re paying associates different amounts, but they will make all associates think they are.

But, the real point is that there is no email, no paper trail, nothing. If Kirkland comes along and gives the Skadden associate an offer and a big bonus (let’s say $200k), the Skadden associate won’t be able to get more by saying that they have a promise of a retention bonus for $300k since there is no paper trail. Then that associate will have to determine the pros and cons.

I think it’s evil and manipulative, but very smart.

I’m getting 5k less than my friend, fwiw, but different practice group. Everyone I know in my year in my practice group is getting paid an identical amount as me though

Can you confirm if it's 5 or 6 figures? Or give an idea of your year 4th year or like senior associate or?

All the numbers I've heard for 3rd years up have all been $100k to $130k, with the top hitting in third or fourth year (so a fourth year and a tenth year could each have 130, for example). Have not heard anything re first or second years though (for all I know they're getting $0), nor have I heard anything outside the corporate groups.

[Buglaw]

So Skadden corporate associates are making 25% more than everyone else and no one cares?

Other people will follow. No way Latham/Kirkland/whomever, pays less than Skadden. I assume Skadden set the bonuses at a rate that they think largely neutralizes the financial incentive for transactional folks to lateral. People need their transactional folks too badly to let them slide for $100k or whatever.

I’m not so sure. There’s no precedent for firms matching others’ retention bonuses. It’s not like associates can lateral to Skadden and get these bonuses. They’re seemingly only for current transactional associates.

The dozens of us most interested in this don’t even know the rough amounts being promised so that’s another hurdle to matching (matching what?). It’s a good idea from Skadden and maybe other firms that are especially short staffed will try something similar, but the word is not out on this at all. Plus, this may not even work. Skadden has had so many transactional departures that those remaining may not have another 10 months of current hours in them.

People will match the same way they have matched lateral signing bonuses. It isn't perfect, but firms that never paid signing bonuses before are paying them now commensurate with their peers. There is no announcement there, but firms were able to figure it out. They will hear these numbers from lateral Skadden candidates when they interview them as those associates will ask to be made whole. The numbers will get out. People will match. Kirkland who is desperate for folks won't pay their M&A associates less than Skadden does. There is just no way that happens. What this might end up doing, is making big law more of a black box sort of comp where people are getting off payscale offers/salaries.

Edited to add that lateral Associate candidates will tell their recruiters what Skadden is offering and then the recruiters will tell firms what they are offering, etc. It might not be a lockstep posted on ATL, but it won't be a secret to those in the know (firms, hiring departments, recruiters, etc.).

[Anonymous User]

So is this real?

[Anonymous User]

If the economy tanks because of Delta and corp work dries up, Skadden better still pay up based on their verbal promises lol

[Anonymous User]

I’ll just put it out there to the powers that be that I’m planning to quit Jan 1, but if you give me $150k I’ll sign a 12 month lock-up. Done. Much cheaper than finding my replacement.

This might be a semi-flippant comment but I would honestly love to hear from anyone who has actually done this or similar. I'm in a niche practice group that is booming and desperately trying to hire lateral associates and would be truly f'd if I left, and yet I have not as of yet wielded that leverage in any significant way. Would love to know if there is a reasonable path to channeling this advantageous position into actual dollars.

[Ultramar vistas]

I’ll just put it out there to the powers that be that I’m planning to quit Jan 1, but if you give me $150k I’ll sign a 12 month lock-up. Done. Much cheaper than finding my replacement.

This might be a semi-flippant comment but I would honestly love to hear from anyone who has actually done this or similar. I'm in a niche practice group that is booming and desperately trying to hire lateral associates and would be truly f'd if I left, and yet I have not as of yet wielded that leverage in any significant way. Would love to know if there is a reasonable path to channeling this advantageous position into actual dollars.

Most firms as a matter of policy won’t fuck with retention bonuses until you’re halfway out the door with a signed offer letter stating signing bonus. They’re terrified of opening up the floodgates to associates demanding what they are worth on the open market from their own firm, and rely on the natural friction and inertia of lateral moves to stop associates leaving their home-firm even though the associates are leaving money on the table.

It’s worked extremely well for years, but maybe this generation is finally catching on to the pyramid scheme power dynamics involved here, and values QoL over preftige sufficiently that sweatshops will finally have to pay more money to sucker grads into working more hours on less predictable timelines, rather than just waving a white shoe brand in their face and hoping that they’re overawed enough not to question the economics of this whole thing.

We’ll see. Feel free to try it and get back to us all.

[Anonymous User]

So were these bonuses real?

[Anonymous User]

So were these bonuses real?

Yes, they are real. 1/2d years are not getting them. 1/2d years also do not know very much about them - they are kept black box within the firm.

[VentureMBA]

Friend of mine at Skadden confirmed these are real and in the range reported above.

[Anonymous User]

Are counsel/senior associates participating in this?

[Anonymous User]

Are counsel/senior associates participating in this?

Yes. Only in the groups that are receiving them, and they are getting the same amounts as the midlevels (I.e., a counsel in a group where fourth years get 110k will themselves also "only" get 110k)

[Anonymous User]

So this is for 3rd years and up in various corporate groups, ranging from $100k to $130k? Does anyone know which groups are receiving them? Is it all 3rd years and up or only certain ones? Also, within one class year, are people receiving the same bonus amounts or are they different depending on how many hours such person billed (or some other factor)?

[Anonymous User]

Is it also true that certain groups are not getting these at all? Including some corporate groups (I assume litigation is the largest group that is being left out)?

[Anonymous User]

I wonder if this type of bonus will make it down to juniors if this is picked up by other firms. Even juniors are lateralling in this market, especially second years in cap markets who are pulling in sizable signing bonuses as well.

[Anonymous User]

Is it also true that certain groups are not getting these at all? Including some corporate groups (I assume litigation is the largest group that is being left out)?

Know several people in RX at Skadden and none have heard about this. They're pretty upset, since RX people have been doing cap markets work (or busy with RX) this year.

[Anonymous User]

Anon because a friend in the smaller group told me this and I don’t want it to be traced back.

I know comp/benefits got it, although my friend said that his/hers was $125k and not $130k. So there may be variances between groups.

[Anonymous User]

I heard from a colleague that even 2nd years are being given up to 100k in one or two groups.

[Anonymous User]

Why is ATL not reporting on this?

[Anonymous User]

This has to be matched in the market right? Or do I lateral try to lateral to Skadden now

[Anonymous User]

This has to be matched in the market right? Or do I lateral try to lateral to Skadden now

I was told recent laterals + first years are getting nada. But presumably a lateral could at least ask for a signing bonus similar to the reten bonus.

[Anonymous User]

Why is ATL not reporting on this?

I think it's similar to how ATL hasn't been reporting on K&E and other firms giving 6 figure signing bonuses even though everyone is talking about / hearing about it.

[2013]

Why is ATL not reporting on this?

I think it's similar to how ATL hasn't been reporting on K&E and other firms giving 6 figure signing bonuses even though everyone is talking about / hearing about it.

I think it’s hard to verify that information, which is why they don’t.

[Anonymous User]

Why is ATL not reporting on this?

I think it's similar to how ATL hasn't been reporting on K&E and other firms giving 6 figure signing bonuses even though everyone is talking about / hearing about it.

Signing bonuses seem different as most associates would not be eligible - this seems no different than the bonus earlier this year which many firms are paying in Q4.

[Idontwanttomakeaname]

Why is ATL not reporting on this?

I think it's similar to how ATL hasn't been reporting on K&E and other firms giving 6 figure signing bonuses even though everyone is talking about / hearing about it.

I think it’s hard to verify that information, which is why they don’t.

Yup. ATL is not journalism, it’s a bunch of hacks so they can’t be bothered to publish anything that isn’t literally “here is something someone else published or which someone emailed us a memo about”

[Ultramar vistas]

Why is ATL not reporting on this?

I think it's similar to how ATL hasn't been reporting on K&E and other firms giving 6 figure signing bonuses even though everyone is talking about / hearing about it.

I think it’s hard to verify that information, which is why they don’t.

Yup. ATL is not journalism, it’s a bunch of hacks so they can’t be bothered to publish anything that isn’t literally “here is something someone else published or which someone emailed us a memo about”

To be fair, sometimes they like to actively undercut the labor market by publishing their annual “Boomer PubCo General Counsel with 3 homes that is comfortable with Partners making $5M dollars is deeply offended by 4th year associate receiving moderate inflation-aligned raise that may allow her to pay off crippling law school debt” article.