2021 End of Year Bonuses Forum

[Anonymous User]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

[Anonymous User]

(A) Why is it obvious that you weren't working all 15 hours? Working for 15+ hours in a day is absolutely a thing.

(B) What firm ties stub bonus to hours??

A- I meant obvious from context, bc I'd said that I've been billing only 20 hrs a week. The schedule is going to get tougher, I expect.
B- I'm not going to out my firm, even anon. If someone puts together a list with Google form submissions I'll submit along with everyone else. We're eligible for bonus based on prorated year and meeting prorated hours. It is what it is. Some firms don't give stubs any bonus.

[Monochromatic Oeuvre]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

[Anonymous User]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

Not the OP, but you can do this at Covington.

[Anonymous User]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

Not the OP, but you can do this at Covington.

Not OP either, but Orrick does it too.

[k_moreno]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

Not the OP, but you can do this at Covington.

Not OP either, but Orrick does it too.

Maybe they say you're still on partnership track, but if you're working 50%, do you have any meaningful chance to make it? Genuine, not rhetorical question

[Moneytrees]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

Not the OP, but you can do this at Covington.

Not OP either, but Orrick does it too.

Maybe they say you're still on partnership track, but if you're working 50%, do you have any meaningful chance to make it? Genuine, not rhetorical question

Doubtful.

[wwwcol]

Can we keep the random weird tangents in other threads and keep this one focused on rampant speculation about how bonuses will go up at least 15-25%?

[Anonymous User]

Honestly I didn’t even realize it has been this many years since the year end bonus has been raised. It’s time. Saying this year was rough is an understatement.

[Anonymous User]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

Not the OP, but you can do this at Covington.

Not OP either, but Orrick does it too.

Maybe they say you're still on partnership track, but if you're working 50%, do you have any meaningful chance to make it? Genuine, not rhetorical question

Covington anon. I doubt if you do it for several years, but I will say I’ve seen at least one (and I think a couple more, but can’t remember for sure) woman make partner while on a less than 100% schedule. In any case I doubt people who truly want to trade money for time are eager to make partner, which is a much more demanding job than associate.

Worth pointing out though that people on less than full time schedules often do end up working a full load. But even then, it’s more likely you are right around your billable target, rather than way over it, and you get trued up anyway.

[Anonymous User]

Honestly I didn’t even realize it has been this many years since the year end bonus has been raised. It’s time. Saying this year was rough is an understatement.

I'm a 5th year and I don't think they've gone up since I was a 1L

[Anonymous User]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

Ropes

[Anonymous User]

Honestly I didn’t even realize it has been this many years since the year end bonus has been raised. It’s time. Saying this year was rough is an understatement.

I'm a 5th year and I don't think they've gone up since I was a 1L

Year end bonuses have been flat since 2014: https://abovethelaw.com/2014/11/bonus-s ... t-cravath/

[Anonymous User]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

I've been at 3 separate firms (all within the v50 and not Orrick or Covington mentioned above) and all 3 offered this.

[Anonymous User]

No surprise, but heard through the grapevine that my V20 is on track to *significantly* top financial estimates this year with no end in sight. Hoping that moves the bonus scale..

[Ultramar vistas]

Honestly I didn’t even realize it has been this many years since the year end bonus has been raised. It’s time. Saying this year was rough is an understatement.

I'm a 5th year and I don't think they've gone up since I was a 1L

Year end bonuses have been flat since 2014: https://abovethelaw.com/2014/11/bonus-s ... t-cravath/

Damn. Had forgotten how big that jump was - good precedent for a new scale…

25
35
70
85
100
110
Etc

[Anonymous User]

I was curious about when bonus announcements started rolling in, so I checked:

2020: November 11
2019: November 7

It will be interesting to see if someone jumps the gun a little to head off associate churn - either by announcing a larger EOY scale or spring special bonuses (or both). Not sure if anyone has ever popped open the EOY bonus scale in October before, though.

[Anonymous User]

I think the pressure to avoid ever lowering PPP will be one of the factors working in associate's favor this cycle. PPP are going to be bonkers this year. That means they have to be bonkers+ next year, and bonkers++ the following year to keep beating the prior year's comp. Throwing 10-30K extra to associates this year takes some (admittedly small) amount out of PPP this year, making it just a little easier to beat the following year. Conversely, saying "let's pay last year scale and announce retention bonuses right away" makes this year's comp tougher to beat, and pushes expense into next year (which we assume, but don't know will be good). I know partners in my firm gripe openly that management seems to manage PPP in good years instead of just paying the partners more of the unexpected "spoils." Expect this year to be no different (other than it will be harder to do).

My guess:

25/40/65/85/100/110/120/130 +/- $5

[Anonymous User]

This is the busiest year I can remember for my practice and my firm, busiest it's been in over a decade. Lateral hiring is as busy as it's ever been. It's affecting associate retention, which is explicitly why Skadden announced targeted retention bonuses. With the combination of higher billables per lawyer plus the unusually strong labor market this year, I'd be shocked if we didn't see a meaningful increase in associate compensation around year-end bonus season.

[Sad248]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

Not the OP, but you can do this at Covington.

Damn, I'd sign up for that, if anyone wants to use me as their lateral referral. Makes sense now too, I have an acquaintance at Covington who is always partying and on vacations and somehow made it to their sixth year. Guess they use this approach too.

[Chrstgtr]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

Not the OP, but you can do this at Covington.

Damn, I'd sign up for that, if anyone wants to use me as their lateral referral. Makes sense now too, I have an acquaintance at Covington who is always partying and on vacations and somehow made it to their sixth year. Guess they use this approach too.

I've been at two firms. Both firms "offered" this. I have never heard of anyone actually being able to use it as described. It is usually a very popular associate who goes part time for a little bit to accommodate parenthood, but that is still very rare and a stepping stone to leaving the firm. I've heard similar stories at friends' firms

[Kikero]

SOARING inflation will force MONUMENTAL year end BONUS increases!

You heard it here first.

[Sad248]

SOARING inflation will force MONUMENTAL year end BONUS increases!

You heard it here first.

In the King of Rome we trust.

[Anonymous User]

What about pay cuts? Prefer taking a $100k pay cut and work 1/3 less.

Um, this is 100% an option at my firm. Does yours not have flexible plans for associates? At mine, you can choose a % between like 50-95% of the billable target and your pay will be prorated accordingly. If you go over your target, you just get trued up on salary/bonus at the end of the year. And you remain on partnership track. If you don't have this option then let me know if you want to lateral so I can get that sweet sweet referral $$$.

This is not a thing at most firms. What firm is this?

Not the OP, but you can do this at Covington.

Damn, I'd sign up for that, if anyone wants to use me as their lateral referral. Makes sense now too, I have an acquaintance at Covington who is always partying and on vacations and somehow made it to their sixth year. Guess they use this approach too.

I've been at two firms. Both firms "offered" this. I have never heard of anyone actually being able to use it as described. It is usually a very popular associate who goes part time for a little bit to accommodate parenthood, but that is still very rare and a stepping stone to leaving the firm. I've heard similar stories at friends' firms

My firm "offers" this, and generally I've only seen it used for the following:

1. Parental responsibilities. Skilled/well-liked mid-level to senior associates taking a reduced schedule for parental obligations. Generally, this is either short-term with the idea they will come back to full-schedule within a year, or if longer term, is a gateway to a staff attorney position (think pro bono director, staffing coordinator, KM associate, etc.)

2. Mental health break. Short-term break used to get healthier after a particularly harrowing time.

3. Transitioning out of the firm.

I don't think I've ever seen the reduced schedule associate position become a long-term position. We have life-long counsels that work 2000 hours/year and are quite happy not being partner, making good money and working "only" 2000 hour pace. I would generally consider that the "reduced schedule" track where they'll keep you for life because you're good and well liked, but everyone knows your off the partnership track/grind.

[Monochromatic Oeuvre]

Yeah my old firm had a "reduced track" that was subject to partner approval. In reality, new moms were the only ones ever really approved for this schedule, and anyone else that asked for us was not "demonstrated to have a need." We did have counsels who seemed to have a permanent 1700-1800 gig though.