Announcing 2022 Special Bonuses Forum

[Anonymous User]

Did I say I’m shocked, or did you read that into my post? There’s a conventional wisdom that lawyers earn 33% of what they generate for their firms. Right now, my metrics are almost half of that. So the no special bonus isn’t sitting well with me.

I won’t quit, but I may well choose to take a few more vacations and adopt a go slow / too busy attitude like many on here if I’m not being compensated appropriately. It’s not like I won’t hit 2000 hours by the end of the year in any event.

In terms of being a warm body, well I’m a senior associate so the firm is absolutely free to fire me and recruit one of the many law grads out there without a job, which according to your theory will save them a bunch of cash.

33% is true at the partner level, generally assuming no book. Definitely false at the associate level at top firms...lol to CSM associates billing 2500 hours getting 1/3 of their gross billings...lol...

A CSM associate billling (and recovering) 2500 is an outlier for the industry. More typical is something like a 7th year who: bills 1,800 to billable matters (so not counting pro bono etc) at $900 and 85% of that is recovered. That adds up to about 1.4m; and 33% of 1.4m is substantially less than 7th year comp was last year.

In what universe is 1800 billable average for a 7th year? And billing rates/recovery are well north of $900/85% at this point.

Try a 7th year billing 2,000 at $1,100 an hour, with basically 100% recovery, so now you are at $2.2 million. All in 7th year comp is well south of that. And the 7th years trying to make partner are billing well north of 2,000. And I would guess that V10 7th year billing rates are now going to eclipse $1,100.

[Anonymous User]

In what universe is 1800 billable average for a 7th year? And billing rates/recovery are well north of $900/85% at this point.

Try a 7th year billing 2,000 at $1,100 an hour, with basically 100% recovery, so now you are at $2.2 million. All in 7th year comp is well south of that. And the 7th years trying to make partner are billing well north of 2,000. And I would guess that V10 7th year billing rates are now going to eclipse $1,100.

Also, even if the math did work out, how does "this is what people have been making" turn into "conventional wisdom?" I have never heard someone say anything like that. Firms pay as little as they can to keep the "talent" they need. That's the conventional wisdom.

[Anonymous User]

Haven't read the past few pages of debate...do we think special bonuses are dead?

[Anonymous User]

Please is there hope

[Anonymous User]

I think the idea of a spring / fall combo bonus is dead. The (protracted, thanks Neil) salary scale raise + geopolitics took any momentum away from that. I still think we could get a summer or fall bonus but it depends on how the next six months go. Nothing’s clear right now. The key is the precedent exists now, it just needs the right conditions to be applied. If the Ukraine situation resolves, the economy appears strong, transactional activity remains robust? Sure, why not.

[Anonymous User]

Did I say I’m shocked, or did you read that into my post? There’s a conventional wisdom that lawyers earn 33% of what they generate for their firms. Right now, my metrics are almost half of that. So the no special bonus isn’t sitting well with me.

I won’t quit, but I may well choose to take a few more vacations and adopt a go slow / too busy attitude like many on here if I’m not being compensated appropriately. It’s not like I won’t hit 2000 hours by the end of the year in any event.

In terms of being a warm body, well I’m a senior associate so the firm is absolutely free to fire me and recruit one of the many law grads out there without a job, which according to your theory will save them a bunch of cash.

33% is true at the partner level, generally assuming no book. Definitely false at the associate level at top firms...lol to CSM associates billing 2500 hours getting 1/3 of their gross billings...lol...

A CSM associate billling (and recovering) 2500 is an outlier for the industry. More typical is something like a 7th year who: bills 1,800 to billable matters (so not counting pro bono etc) at $900 and 85% of that is recovered. That adds up to about 1.4m; and 33% of 1.4m is substantially less than 7th year comp was last year.

In what universe is 1800 billable average for a 7th year? And billing rates/recovery are well north of $900/85% at this point.

Try a 7th year billing 2,000 at $1,100 an hour, with basically 100% recovery, so now you are at $2.2 million. All in 7th year comp is well south of that. And the 7th years trying to make partner are billing well north of 2,000. And I would guess that V10 7th year billing rates are now going to eclipse $1,100.

Just look up Revenue Per Lawyer. Only Wachtell is above $2.2 million, no other firm particularly close, and most way below. Latham/Cravath/Milbank all around $1.5m.

[Buglaw]

Did I say I’m shocked, or did you read that into my post? There’s a conventional wisdom that lawyers earn 33% of what they generate for their firms. Right now, my metrics are almost half of that. So the no special bonus isn’t sitting well with me.

I won’t quit, but I may well choose to take a few more vacations and adopt a go slow / too busy attitude like many on here if I’m not being compensated appropriately. It’s not like I won’t hit 2000 hours by the end of the year in any event.

In terms of being a warm body, well I’m a senior associate so the firm is absolutely free to fire me and recruit one of the many law grads out there without a job, which according to your theory will save them a bunch of cash.

33% is true at the partner level, generally assuming no book. Definitely false at the associate level at top firms...lol to CSM associates billing 2500 hours getting 1/3 of their gross billings...lol...

A CSM associate billling (and recovering) 2500 is an outlier for the industry. More typical is something like a 7th year who: bills 1,800 to billable matters (so not counting pro bono etc) at $900 and 85% of that is recovered. That adds up to about 1.4m; and 33% of 1.4m is substantially less than 7th year comp was last year.

In what universe is 1800 billable average for a 7th year? And billing rates/recovery are well north of $900/85% at this point.

Try a 7th year billing 2,000 at $1,100 an hour, with basically 100% recovery, so now you are at $2.2 million. All in 7th year comp is well south of that. And the 7th years trying to make partner are billing well north of 2,000. And I would guess that V10 7th year billing rates are now going to eclipse $1,100.

Just look up Revenue Per Lawyer. Only Wachtell is above $2.2 million, no other firm particularly close, and most way below. Latham/Cravath/Milbank all around $1.5m.

Is a 7th year really the average lawyer at a big law firm? There are a decent amount of part time folks as well. Also, there is a huge discrepancy between practice groups. Most senior associates doing a transactional practice who are not reduced pace bring in over $2 million. Recovery for these corporate folks is well into the 90s. I think it's a bit tougher on the litigators who bill out at less, have an easier lifestyle and collect a lower percentage of their hours.

[Anonymous User]

Did I say I’m shocked, or did you read that into my post? There’s a conventional wisdom that lawyers earn 33% of what they generate for their firms. Right now, my metrics are almost half of that. So the no special bonus isn’t sitting well with me.

I won’t quit, but I may well choose to take a few more vacations and adopt a go slow / too busy attitude like many on here if I’m not being compensated appropriately. It’s not like I won’t hit 2000 hours by the end of the year in any event.

In terms of being a warm body, well I’m a senior associate so the firm is absolutely free to fire me and recruit one of the many law grads out there without a job, which according to your theory will save them a bunch of cash.

33% is true at the partner level, generally assuming no book. Definitely false at the associate level at top firms...lol to CSM associates billing 2500 hours getting 1/3 of their gross billings...lol...

A CSM associate billling (and recovering) 2500 is an outlier for the industry. More typical is something like a 7th year who: bills 1,800 to billable matters (so not counting pro bono etc) at $900 and 85% of that is recovered. That adds up to about 1.4m; and 33% of 1.4m is substantially less than 7th year comp was last year.

In what universe is 1800 billable average for a 7th year? And billing rates/recovery are well north of $900/85% at this point.

Try a 7th year billing 2,000 at $1,100 an hour, with basically 100% recovery, so now you are at $2.2 million. All in 7th year comp is well south of that. And the 7th years trying to make partner are billing well north of 2,000. And I would guess that V10 7th year billing rates are now going to eclipse $1,100.

Just look up Revenue Per Lawyer. Only Wachtell is above $2.2 million, no other firm particularly close, and most way below. Latham/Cravath/Milbank all around $1.5m.

But a 7th year is going to be above average in revenue.

[Anonymous User]

Did I say I’m shocked, or did you read that into my post? There’s a conventional wisdom that lawyers earn 33% of what they generate for their firms. Right now, my metrics are almost half of that. So the no special bonus isn’t sitting well with me.

I won’t quit, but I may well choose to take a few more vacations and adopt a go slow / too busy attitude like many on here if I’m not being compensated appropriately. It’s not like I won’t hit 2000 hours by the end of the year in any event.

In terms of being a warm body, well I’m a senior associate so the firm is absolutely free to fire me and recruit one of the many law grads out there without a job, which according to your theory will save them a bunch of cash.

33% is true at the partner level, generally assuming no book. Definitely false at the associate level at top firms...lol to CSM associates billing 2500 hours getting 1/3 of their gross billings...lol...

A CSM associate billling (and recovering) 2500 is an outlier for the industry. More typical is something like a 7th year who: bills 1,800 to billable matters (so not counting pro bono etc) at $900 and 85% of that is recovered. That adds up to about 1.4m; and 33% of 1.4m is substantially less than 7th year comp was last year.

In what universe is 1800 billable average for a 7th year? And billing rates/recovery are well north of $900/85% at this point.

Try a 7th year billing 2,000 at $1,100 an hour, with basically 100% recovery, so now you are at $2.2 million. All in 7th year comp is well south of that. And the 7th years trying to make partner are billing well north of 2,000. And I would guess that V10 7th year billing rates are now going to eclipse $1,100.

Just look up Revenue Per Lawyer. Only Wachtell is above $2.2 million, no other firm particularly close, and most way below. Latham/Cravath/Milbank all around $1.5m.

But a 7th year is going to be above average in revenue.

Let it go. This bro is clearly your typical "knows enough math to be dangerous but not enough to be right" kind of guy. Will calculate a ratio and say it's conventional because why not. Will for the exception to prove the rule.

In the end of the day, 33% just isn't conventional wisdom. Period. People should stop comparing what they make for the firm to what they take home - only partners get to do that. THAT is conventional wisdom.

[Anonymous User]

Bump for spring bonuses!

[Anonymous User]

Bump for spring bonuses!

(time traveler from January 2022)

[Anonymous User]

Bump for spring bonuses!

(time traveler from January 2022)

Need it for my Lambo payments …

[Anonymous User]

With 10% inflation, we lost purchasing power after the base salary raises.

[Anonymous User]

Bump for spring bonuses!

(time traveler from January 2022)

Need it for my Lambo payments …

+1

[Anonymous User]

Partners please help us. Not another 300+ with no bonus and some shitty RTO event.

[Anonymous User]

Firms pay special bonuses when they think they have to do so in order to retain enough associates to get the work done. Not out of the goodness of their hearts. With deal work down and lateral hiring down, and base salaries up, I wouldn’t be holding my breath.

[Sackboy]

With 10% inflation, we lost purchasing power after the base salary raises.

If you look at how inflation is calculated, a good bit of it is stuff that just doesn't scale wildly, so it'll depend on where you're at in life. Sure, if you're wading into the housing market right now or trying to purchase a car, it might equal out or you might end up on the wrong side of the equation. But, if you aren't itching for those things, you're probably coming out ahead. This isn't a simple % = % game. For me, my mortgage is the same, already own a used car, and paying an extra $2,000/yr. in energy and food is dramatically outweighed by a $30,000 pay increase.

[Anonymous User]

With 10% inflation, we lost purchasing power after the base salary raises.

If you look at how inflation is calculated, a good bit of it is stuff that just doesn't scale wildly, so it'll depend on where you're at in life. Sure, if you're wading into the housing market right now or trying to purchase a car, it might equal out or you might end up on the wrong side of the equation. But, if you aren't itching for those things, you're probably coming out ahead. This isn't a simple % = % game. For me, my mortgage is the same, already own a used car, and paying an extra $2,000/yr. in energy and food is dramatically outweighed by a $30,000 pay increase.

This. Gas is up too, but most of the NYC associates ITT haven't seen a gas station in ages.

That said, the new 5% Amazon surcharge is about to hit my bank account like a wrecking ball.

[Anonymous User]

Firms pay special bonuses when they think they have to do so in order to retain enough associates to get the work done. Not out of the goodness of their hearts. With deal work down and lateral hiring down, and base salaries up, I wouldn’t be holding my breath.

Maybe your firm isn’t busy but my V10 is going to have another record year with record departures. Curious if you even work at an V100.

[Anonymous User]

My V10 is also slammed and losing associates in droves.

[Anonymous User]

Firms pay special bonuses when they think they have to do so in order to retain enough associates to get the work done. Not out of the goodness of their hearts. With deal work down and lateral hiring down, and base salaries up, I wouldn’t be holding my breath.

Maybe your firm isn’t busy but my V10 is going to have another record year with record departures. Curious if you even work at an V100.

Yeah I don't know where that guy works but we continue to be firing on all cylinders. I continue to think there are decent odds of getting a mid-year special bonus announcement, e.g., announced in June with a July payout; something to keep people motivated and retained.

[Anonymous User]

Firms pay special bonuses when they think they have to do so in order to retain enough associates to get the work done. Not out of the goodness of their hearts. With deal work down and lateral hiring down, and base salaries up, I wouldn’t be holding my breath.

Maybe your firm isn’t busy but my V10 is going to have another record year with record departures. Curious if you even work at an V100.

Yeah I don't know where that guy works but we continue to be firing on all cylinders. I continue to think there are decent odds of getting a mid-year special bonus announcement, e.g., announced in June with a July payout; something to keep people motivated and retained.

Maybe a “chill” biglaw location…

[Anonymous User]

Didn't a bunch of BB Wall Street banks just announce slow Q1s? (within the last ~week) Dealmaking (IB) revenue at JPM, GS, MS, etc. all fell relative to last year.

Is there any reason to think BL firms are seeing different dynamics in the market vs. the large banks? All in all, this makes me bearish on '22 special bonuses unless conditions dramatically reverse direction.

[Anonymous User]

Didn't a bunch of BB Wall Street banks just announce slow Q1s? (within the last ~week) Dealmaking (IB) revenue at JPM, GS, MS, etc. all fell relative to last year.

Is there any reason to think BL firms are seeing different dynamics in the market vs. the large banks? All in all, this makes me bearish on '22 special bonuses unless conditions dramatically reverse direction.

M&A work is significantly down this year. People who are busy must not do a lot of M&A.

[Anonymous User]

Accepting a special bonus would be thievery in this economy. Thank you partners for putting a stop to this greed. Plus, as we all know, you lot are hanging around for the V10 prestige anyway