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Thoughts?

Definitely sounded like an elaborate troll. But when I ask transactional folks at Skadden, it’s legit. Seems the firm really really stressed discretion as some people heard last week.

Can someone give any update here as to what you're talking about?

Need a mod to check IPs of the various anons claiming knowledge.

Anonymous User wrote: ↑

Thu Aug 05, 2021 11:27 am

Can someone give any update here as to what you're talking about?

I was the first anon reply. I don’t work at Skadden, but my peer there say they were told they would receive a certain payout in summer 2022 if they were still employed at Skadden then. Seems they haven’t put this in writing and emphasized that it should not be leaked or shared with peers at other firms. This is probably smart as other firms are less likely to match a retention program that’s group or individual-specific and not recorded in a leaked memo.

So what’s the thinking on how this will impact the overall market. Will other firms do likewise? Will signing bonuses increase? Will lateral activity decrease? Will year end bonuses in 2022 be lower? Will different firms all take different approaches? Will DPW sweep in and match the retention bonuses but across all associates?

I think the fact the firm stressed discretion plus the black box nature of it is really muting discussion. Like no one wants to show up with numbers and class gear specificity because for all they know they might be the only like, class of 2018 cap markets associate who got 75k or the only class of 2015 one to get 125k or something, to make up numbers. So they out themselves immediately if the firm is monitoring gossip (which maybe they are, since the calls stressed to keep it on down-Lo)

(I’m same anon as immediately above, but not the other anon)

Anonymous User wrote: ↑

Thu Aug 05, 2021 11:56 am

So what’s the thinking on how this will impact the overall market. Will other firms do likewise? Will signing bonuses increase? Will lateral activity decrease? Will year end bonuses in 2022 be lower? Will different firms all take different approaches? Will DPW sweep in and match the retention bonuses but across all associates?

I think we’re into the period where firms will take different approaches. Signing bonuses and referral bonuses are highly variable from firm to firm. I would guess only the firms that were late to the lateral wars would think about retention bonuses. Kirkland, Latham, and DPW are doing alright in the lateral market plus, again, it’s hard to match the Skadden approach when it’s intentionally vague and hush hush. How would the bonuses retain anyone if every firm accounts for them? That is what Skadden tried to design around it seems.

I think this is real (and long overdue). Transactional practices bring in a ton more money, the exit opps are a lot better, the lifestyle is worse and everybody has been short on transactional associates for like 5 years. I see no compelling reason why firms continue to pay lit associates (who get billed out at hundreds of dollars less, collect fewer of their hours worked, are easier to find on the lateral market and don't have the exit options) should be paid the same as transactional associates.

If this was fake, why isn't their a single post from someone saying I am a Skadden mid level, I didn't get this and none of my classmates got it either.

Anonymous User wrote: ↑

Thu Aug 05, 2021 12:06 pm

Anonymous User wrote: ↑

Thu Aug 05, 2021 11:56 am

So what’s the thinking on how this will impact the overall market. Will other firms do likewise? Will signing bonuses increase? Will lateral activity decrease? Will year end bonuses in 2022 be lower? Will different firms all take different approaches? Will DPW sweep in and match the retention bonuses but across all associates?

I think we’re into the period where firms will take different approaches. Signing bonuses and referral bonuses are highly variable from firm to firm. I would guess only the firms that were late to the lateral wars would think about retention bonuses. Kirkland, Latham, and DPW are doing alright in the lateral market plus, again, it’s hard to match the Skadden approach when it’s intentionally vague and hush hush. How would the bonuses retain anyone if every firm accounts for them? That is what Skadden tried to design around it seems.

Yeah Skadden associates need to break the silence. If they do, other firms will match increasing pressure on top firms to raise even more. Staying silent serves no one but your equity partner overlords.

Agreed, this needs to be published on ATL and spread further to have real industry-wide effect. There are ways to leak the info carefully (using $10-15k ranges; releasing the info in aggregated batches; etc. etc.) that protect the anonymity of the sources.

VAULT WAS RIGHT, SKADDEN V2

I can neither confirm nor deny these are very real

I'm hearing rumblings that another firm is paying these as well. I am not going to name what firm it is, because it's so far below Skadden that people will assume I am trolling. We really need some Skadden folks to weigh in here onw way or another.

Are we really doing this again? Someone post a screenshot or I’ll just assume all SkaTTTen gave out was cheese boards.

Man from Nantucket wrote: ↑

Thu Aug 05, 2021 4:21 pm

Are we really doing this again? Someone post a screenshot or I’ll just assume all SkaTTTen gave out was cheese boards.

I cAnT cOnFiRm Or ThEy wIlL kNoW iTs Me

Okay then fudge the numbers… if hundreds of Skadden associates just got six figure retention bonuses, ATL is going to have it within the week.

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.

Buglaw wrote: ↑

Thu Aug 05, 2021 12:08 pm

I think this is real (and long overdue). Transactional practices bring in a ton more money, the exit opps are a lot better, the lifestyle is worse and everybody has been short on transactional associates for like 5 years. I see no compelling reason why firms continue to pay lit associates (who get billed out at hundreds of dollars less, collect fewer of their hours worked, are easier to find on the lateral market and don't have the exit options) should be paid the same as transactional associates.

This.

2013 wrote: ↑

Thu Aug 05, 2021 10:12 pm

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

Anonymous User wrote: ↑

Thu Aug 05, 2021 10:31 pm

2013 wrote: ↑

Thu Aug 05, 2021 10:12 pm

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?

Anonymous User wrote: ↑

Thu Aug 05, 2021 10:31 pm

2013 wrote: ↑

Thu Aug 05, 2021 10:12 pm

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

I stand corrected

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

Anonymous User wrote: ↑

Fri Aug 06, 2021 10:10 am

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.

Buglaw wrote: ↑

Fri Aug 06, 2021 10:16 am

Anonymous User wrote: ↑

Fri Aug 06, 2021 10:10 am

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.

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.