2021 End of Year Bonuses Forum

[Anonymous User]

I wish it was built into the bonus so we could get a higher total (for those of us getting a multiple)

My first thought as a KE associate, since last year it seemed like they applied our multiple to the base and then added the special on top, rather than multiplying the whole thing. I expect the same treatment here, so a c/o 2016 with a 1.3x will get 135k instead of 140.5k. Not a huge deal but noticeable

There is no way that KE, a firm that markets itself as paying above market, will let a peer firm clearly out pay them.

As a lateral that had my bonus set at “market rate” (or whatever the phrasing was), this would also immediately piss me off and make me want to leave

[Anonymous User]

To use my class year for this analysis, all-in 4th year comp in 2021 is north of $400k (275 base as of midyear + 44 special earlier this year + 15 year-end special + 75 year-end). In 2019 it was $325k. That’s about a 25% increase. Firms are finally having to pay to keep talent around. There’s no sign of this slowing down yet.

[Anonymous User]

I wish it was built into the bonus so we could get a higher total (for those of us getting a multiple)

My first thought as a KE associate, since last year it seemed like they applied our multiple to the base and then added the special on top, rather than multiplying the whole thing. I expect the same treatment here, so a c/o 2016 with a 1.3x will get 135k instead of 140.5k. Not a huge deal but noticeable

There is no way that KE, a firm that markets itself as paying above market, will let a peer firm clearly out pay them.

As a lateral that had my bonus set at “market rate” (or whatever the phrasing was), this would also immediately piss me off and make me want to leave

This isn’t about KE getting beat, but rather how much KE will beat the market by. Pretty confident that everyone in good standing at KE is gonna get more than the two-column DPW chart - just a question of how much more.

[Anonymous User]

Paul Hastings full match of DPW, payable Feb. 4. That's a month earlier than it's been paid out in recent years, and a match in record time.

The announcement also specifies that 2021 special bonuses will be trued up for those who missed them based on hours but receive an EOY bonus.

Cravath looking very weak right now.

While celebrating DPW and everyone who matches, associates should remember Cravath's flimsy raise and DPW coming to the rescue when we do next year's vault rankings. Still time for Milbank to act, but DPW has set the market in motion.

[Anonymous User]

Debevoise just matched new DPW scale.

[Anonymous User]

Can everyone reporting matches please specify if the match is listed as one EOY bonus number or the CSM + Special format?

[Anonymous User]

I wish it was built into the bonus so we could get a higher total (for those of us getting a multiple)

My first thought as a KE associate, since last year it seemed like they applied our multiple to the base and then added the special on top, rather than multiplying the whole thing. I expect the same treatment here, so a c/o 2016 with a 1.3x will get 135k instead of 140.5k. Not a huge deal but noticeable

There is no way that KE, a firm that markets itself as paying above market, will let a peer firm clearly out pay them.

As a lateral that had my bonus set at “market rate” (or whatever the phrasing was), this would also immediately piss me off and make me want to leave

This isn’t about KE getting beat, but rather how much KE will beat the market by. Pretty confident that everyone in good standing at KE is gonna get more than the two-column DPW chart - just a question of how much more.

Exactly. A 2015 at DPW gets $105k base + $21k special = $126k total. K&E has historically applied its multiplier to the market base. So if I’m a K&E 2015 with a 1.5x multiplier, that means I’m getting ($105k base x 1.5) + $21k = $178,500.

However, if DPW had increased the base scale by the same amount (i.e. give 2015 $126k as a base bonus), then that same K&E 2015 would be getting ($126k x 1.5) = $189k. So the K&E person is still getting above market, but would have been $10,500 MORE above market if the bonus were not “special.”

You know, unless the K&E share partners want to be fucking cool and apply multipliers to the special bonuses too...

[Anonymous User]

I wish it was built into the bonus so we could get a higher total (for those of us getting a multiple)

My first thought as a KE associate, since last year it seemed like they applied our multiple to the base and then added the special on top, rather than multiplying the whole thing. I expect the same treatment here, so a c/o 2016 with a 1.3x will get 135k instead of 140.5k. Not a huge deal but noticeable

There is no way that KE, a firm that markets itself as paying above market, will let a peer firm clearly out pay them.

As a lateral that had my bonus set at “market rate” (or whatever the phrasing was), this would also immediately piss me off and make me want to leave

This isn’t about KE getting beat, but rather how much KE will beat the market by. Pretty confident that everyone in good standing at KE is gonna get more than the two-column DPW chart - just a question of how much more.

It's going to be the same way as last year -- %-beat on the base, no beat on the "special". Bigger question is whether they keep the "brake" in-place that tends to cabin in the benefit for higher billers or if they establish the system on the same basis as last year, I assume it will be the same.

[Anonymous User]

Generally the announcements say that bonuses are prorated for those that have worked less than the full bonus year. I joined about 4.5 months in (so worked about 63% of the bonus year) but worked around 1440 hours which is c. 2300 annualised hours (and 1440 is 75% of a 1900 target). No idea whether I'd get a 0.63 multiplier based on months worked or a 0.75 multiplier based on hours worked, but something extra (a more generous multiplier) for billing this much in my first 7 months on top of inductions etc would be welcome.

The announcements always say that as a general rule, but then as a lateral you'd have something in your offer letter saying yours won't be pro-rated if that was agreed to.

Any idea how that works if there's an hours minimum?

You get full bonus if you hit pro rated hours.

[cornerstone]

You need to add the 2020 special bonuses to the first column. That's the proper comparison if we're talking about EOY comp.

Same anon here, I unfortunately didn't receive any 2020 special bonuses so I don't know much about them. Did they get paid with EOY bonus typically?

I feel like if I add those, I'll have to add the Fall bonus to 2021, then add the spring/summer bonus to 2021? I can easily do it but it kind of loses its point to pick and choose. I know people were debating this earlier but I don't know where the classifications landed

It's all available online. Someone should probably check my math, though.

First number is 2020 (with special bonus), second is 2021 CSM, third is 2021 DPW, and fourth is total 2021 bonuses (mid-year retention, CSM, and DPW special), followed by the 2019 EOY bonuses in parenthesis. This basically is a wash compared with last year's EOY + special bonuses. But when you factor in this years retention bonuses, all-in comp is indubitably up. And compared to 2019, almost everybody gets double or more. Posted with no comment as to where the real reference point should be


First Year
$22,500------->$20,000------->$24,000------->$36,000 ($15,000)

Second Year
$35,000------->$30,000------->$36,000------->$52,000 ($25,000)

Third Year
$70,000------->$57,500------->$69,000------->$101,000 ($50,000)

Fourth Year
$92,500------->$75,000------->$90,000------->$134,000 ($65,000)

Fifth Year
$112,500------>$90,000------->$108,000----->$160,000 ($80,000)

Sixth Year
$127,000------>$105,000------>$126,000----->$185,200 ($90,000)

Seventh Year+
$140,000------>$115,000------>$138,000----->$202,000 ($100,000)

[TigerIsBack]

Also better for laterals who would otherwise have their bonus prorated.

Are people still getting pro rated bonuses after lateraling? I had to take a class year cut but will still get an annualized bonus. I was getting recruiter e-mails in November telling me firms would pay me the full annual bonus if I hopped.

Generally the announcements say that bonuses are prorated for those that have worked less than the full bonus year. I joined about 4.5 months in (so worked about 63% of the bonus year) but worked around 1440 hours which is c. 2300 annualised hours (and 1440 is 75% of a 1900 target). No idea whether I'd get a 0.63 multiplier based on months worked or a 0.75 multiplier based on hours worked, but something extra (a more generous multiplier) for billing this much in my first 7 months on top of inductions etc would be welcome.

The announcements always say that as a general rule, but then as a lateral you'd have something in your offer letter saying yours won't be pro-rated if that was agreed to.

Any idea how that works if there's an hours minimum?

Offer letter should either say you have to hit pro-rated hours to get full bonus or that you'll get full bonus without regard to hours (which acknowledges that even in the busiest times it can take some time to get ramped up).

[Anonymous User]

Anyone know if Wachtell has paid special bonuses this year? Otherwise, if bonuses are 100% of market base, their comp for more senior associates is not looking as insane as is typical. (6th year making $502,700 market this year vs. $660k at Wachtell, pre-tax of course, per https://www.biglawinvestor.com/biglaw-salary-scale/)

WLRK paid special bonuses this year above market.

[TigerIsBack]

Is Above the Law really this obtuse?

From Debevoise article:

"Lo and behold, the firm has matched both the Cravath bonus scale and the Davis Polk special bonus scale."

No, ATL. This is just the DPW scale. CravaTTTh has nothing to do with setting market compensation anymore.

[Anonymous User]

Is Above the Law really this obtuse?

From Debevoise article:

"Lo and behold, the firm has matched both the Cravath bonus scale and the Davis Polk special bonus scale."

No, ATL. This is just the DPW scale. CravaTTTh has nothing to do with setting market compensation anymore.

I don't agree with this because DPW intentionally set it up so that it could be rolled back next year. If DPW wants to do it and be legends, they should have just juiced the scale. So now we have Cravath + DPW unless Milbank just mixes them all together (with another 5% on top..?).

[glitched]

It'd be hilarious if MilBANK tops. Also could have a dark horse like Willkie do something.

[lawdude31]

It'd be hilarious if MilBANK tops. Also could have a dark horse like Willkie do something.

The issue is that is unlikely that anyone would handily beat the bonuses the DPW is giving and it also unlikely that Milbank or Willkie would announce a scale that beats DPW by $2/3k.

Would announcing spring retention bonuses be beating DPW's scale?

[Anonymous User]

Would still like to hear from a Mintz associate who can tell us what was paid before the special-bonus announcement a couple weeks back. That is, were they behind on comp such that their special bonus just helped them catch up, or did Mintz associates make out here?

[Anonymous User]

It'd be hilarious if MilBANK tops. Also could have a dark horse like Willkie do something.

The issue is that is unlikely that anyone would handily beat the bonuses the DPW is giving and it also unlikely that Milbank or Willkie would announce a scale that beats DPW by $2/3k.

Would announcing spring retention bonuses be beating DPW's scale?

As far as I'm concerned Skadden is currently the market-leader for general corporate / M&A / cap markets associates because they will match the Cravath scale, the DPW special bonus scale and they've committed to 6-figure retention bonuses payable June 30 to juniors-through-seniors in those groups. The only annoying thing is that they haven't paid the second half of this year's special bonus yet (but it will be lumped in with EOY, so unless they do something sneaky the EOY will be a little extra-juiced....though obviously I'm sure Skadden associates have preferred to have received that in September like many other firms did).

[Anonymous User]

If Milbank tops the DPW scale I'll get a Milbank tattoo

[Anonymous User]

The longer Milbank waits to announce, the more likely it is that Milbank will top the scale and/or announce spring retention bonuses. We shall see.

[HenryHankPalmer]

When will someone raise the stub bonus scale to $20K? Why won't someone think of the poor stubs?!

[Anonymous User]

Willkie announced DPW match.

[Anonymous User]

Willkie just matched DPW.

[Definitely Not North]

Updated list of bellwethers:

- DPW (has raised the scale in the past) [RAISE]
- Milbank (has raised the scale in the past)
- STB (can't remember what they last did?)
- Willkie (kicked off 2021 special bonuses)

[Anonymous User]

Skadden just lumped in the year-end bonus with the earlier special bonus (which they still haven't paid), giving the illusion of an eye-popping raise to DPW but it is actually just matching DPW. Don't get excited when you see the Skadden amounts, folks.