How to Maximize Signing Bonus Forum

[LawMaster97]

I am looking to lateral to another biglaw firm in a secondary market in the winter or early spring after I collect my end of year bonus at my current firm. I am a fifth year in corporate. I have a couple firms that I’m interested in and I’m relatively confident that
I could receive offers given the hot lateral market.

How do I maximize my signing bonus? I’m not interested in partnership, but I’d just like to make as much money as possible in the next few years before going in-house. I have a few friends at each of the prospective firms, but I know that these firms probably pay a referral bonus, which would cut into the amount I could receive in a signing bonus. I’m thinking it’s probably best to (1) not use a recruiter and (2) contact the HR department at each firm directly (and not ask my friends to reach out). Both of these steps should minimize the total cost of hiring me to the firm, thus allowing the firm more leeway to offer a larger signing bonus. I also want to wait to lateral until after this year’s bonus is paid out so that the firms don’t need to guarantee those bonus payments. Any thoughts or critiques on this strategy?

[Anonymous User]

I am looking to lateral to another biglaw firm in a secondary market in the winter or early spring after I collect my end of year bonus at my current firm. I am a fifth year in corporate. I have a couple firms that I’m interested in and I’m relatively confident that
I could receive offers given the hot lateral market.

How do I maximize my signing bonus? I’m not interested in partnership, but I’d just like to make as much money as possible in the next few years before going in-house. I have a few friends at each of the prospective firms, but I know that these firms probably pay a referral bonus, which would cut into the amount I could receive in a signing bonus. I’m thinking it’s probably best to (1) not use a recruiter and (2) contact the HR department at each firm directly (and not ask my friends to reach out). Both of these steps should minimize the total cost of hiring me to the firm, thus allowing the firm more leeway to offer a larger signing bonus. I also want to wait to lateral until after this year’s bonus is paid out so that the firms don’t need to guarantee those bonus payments. Any thoughts or critiques on this strategy?

1) I'm not entirely sure that the referral cuts into your signing bonus. Maybe more knowledgable people, or maybe you yourself, know better on the subject, but in my previous firm there was an existing centralized referral bonus pool, and I'm not sure that was incorporated into a "total hiring cost" since the pool was just sitting there as a separate incentive.

2) It might be worth reaching out to recruiters to just feel them out for how much signing bonuses are in your target market, with your experience, in your practice area.

[Buglaw]

Agree you should speak to recruiters to get a sense of the signing bonus market. FWIW, maximizing your bonus is mostly a function of maximizing your leverage for the bonus, which means maximizing competing offers and having knowledge about what the bonus market is. Big law firm (x) isn't going to give you a smaller bonus because you used a recruiter or paid a referral fee. They'll give you a smaller bonus because you don't know the market so they think they can, you don't have multiple offers so they thunk they can, or they just don't care of they vet you that much. I really don't see how going through your friends at a firm could possibly hurt you, as their good reccomendation will make them want you more. You can also always ask to split their referral bonus with them.

[LawMaster97]

Thanks for the replies. I don’t have a sense of how the referral bonus works, but will try to look into that further. On the recruiters, I understand that recruiters are paid 20-25% of your base salary for placing you at the firm. This would be about $75,000, so I would think it’s best to avoid recruiters to free up that money as a signing bonus. Does anyone have experience negotiating without a recruiter. I’m not sure that they add a lot of value (and certainly not $75,000 worth of value).

[Anonymous User]

The huge bonuses you sometimes hear about or read about go to people that firms seek out not people who apply. If you’re applying, I’d split a referral bonus with someone you know and leverage multiple offers (try to include Kirkland in the mix) to get the highest signing bonus. I got a significant signing bonus and negotiated it up with a recruiter (against his wishes) so I tend to think people overestimate how recruiters alter things.

[Monochromatic Oeuvre]

Thanks for the replies. I don’t have a sense of how the referral bonus works, but will try to look into that further. On the recruiters, I understand that recruiters are paid 20-25% of your base salary for placing you at the firm. This would be about $75,000, so I would think it’s best to avoid recruiters to free up that money as a signing bonus. Does anyone have experience negotiating without a recruiter. I’m not sure that they add a lot of value (and certainly not $75,000 worth of value).

Firms not having to pay a recruiter does not mean they're going to give you an extra $75k. Some firms may be willing to give you a *little* extra with no recruiter than they otherwise might, but as I suspect you've already learned by now, every dollar a firm can save is one they try to keep for themselves. There's a reason firms are not out here begging people to bypass recruiters.

Really, your situation is actually ideal for a recruiter. Going without one is usually best reserved for people targeting a specific firm and/or one where you already know people; i.e. one where "knowledge of the market" doesn't really matter. Someone who doesn't really care about anything but getting the best negotiated offer is better served applying to as many places as possible (including places you didn't know had openings) and starting a bidding war with your offers. That will generally boost your earnings by more than having a recruiter will cost them. If you're in a major market, and especially in the current environment, that can mean applying to dozens of firms. I assure you that arranging all of that, from start to finish, is not feasible for someone in the middle of a Biglaw schedule.