Announcing 2022 Special Bonuses Forum

[Anonymous User]

https://abovethelaw.com/2022/03/hunton-raise-2022/

These guys are at borderline biglaw. Some players will have to act. I can see one of the three leading firms trumping those figures.

But isn’t this the end of year special bonus from last year?

[Wanderingdrock]

https://abovethelaw.com/2022/03/hunton-raise-2022/

These guys are at borderline biglaw. Some players will have to act. I can see one of the three leading firms trumping those figures.

But isn’t this the end of year special bonus from last year?

Yes. I don't know why ATL does this. It's just annoying.

[Anonymous User]

https://abovethelaw.com/2022/03/hunton-raise-2022/

These guys are at borderline biglaw. Some players will have to act. I can see one of the three leading firms trumping those figures.

But isn’t this the end of year special bonus from last year?

OK, I'm confused now. There are three bonus figures I gleaned from the ATL piece: (1) the FY22 (AKA EOY '21 that everyone else paid already in Dec/Jan) bonuses (ranging from prorated $15K-115K); (2) second-half installment payments of the '21 DPW special bonuses, payable late in April '22 (ranging from $7.5K-40K); and (3) what the ATL piece calls the "brand new special bonus scale" (ranging from $4K-23K).

Am I misinterpreting this? Is the (3) bonus not genuinely new or above-market at the moment?

Edit: Never mind, I see. (3) is just a match of this bonus scale which most firms already paid out.

[Anonymous User]

Saw this article yesterday about last year's financials for the traditional NY big law firms: https://www.law.com/americanlawyer/2022 ... llar-2021/

2021 Profits per (Equity) Partner
Wachtell: $8.4 MM (up 12%)
DPW: $7.01 MM (up 10%)
S&C: $6.385 MM (up 23%)
PW: $6.16 MM (up 15%)
STB: $5.98 MM (up 14%)
Cravath: $5.8 MM (up 27%)
Cahill: $5.53 MM (up 21%)
Weil: $5.18 MM (up 15%)
Skadden: $5.088 MM (up 18%)
Milbank: $5.033 MM (up 12%)
Debevoise: $5.011 MM (up 10%)
Cleary: $4.698 MM (up 28%)
Cadwalader: $4.38 MM (up 72%)

I haven't been in biglaw that long, but these numbers are way higher than I would have ever imagined 4-5 years ago. I don't see how firms continue putting up these kinds of profits/RPL figures without continuing to reward associates via special bonuses.

[Anonymous User]

Saw this article yesterday about last year's financials for the traditional NY big law firms: https://www.law.com/americanlawyer/2022 ... llar-2021/

2021 Profits per (Equity) Partner
Wachtell: $8.4 MM (up 12%)
DPW: $7.01 MM (up 10%)
S&C: $6.385 MM (up 23%)
PW: $6.16 MM (up 15%)
STB: $5.98 MM (up 14%)
Cravath: $5.8 MM (up 27%)
Cahill: $5.53 MM (up 21%)
Weil: $5.18 MM (up 15%)
Skadden: $5.088 MM (up 18%)
Milbank: $5.033 MM (up 12%)
Debevoise: $5.011 MM (up 10%)
Cleary: $4.698 MM (up 28%)
Cadwalader: $4.38 MM (up 72%)

I haven't been in biglaw that long, but these numbers are way higher than I would have ever imagined 4-5 years ago. I don't see how firms continue putting up these kinds of profits/RPL figures without continuing to reward associates via special bonuses.

Big slowdown in Q1 this year, we can kiss those bonuses goodbye.

[Moneytrees]

Saw this article yesterday about last year's financials for the traditional NY big law firms: https://www.law.com/americanlawyer/2022 ... llar-2021/

2021 Profits per (Equity) Partner
Wachtell: $8.4 MM (up 12%)
DPW: $7.01 MM (up 10%)
S&C: $6.385 MM (up 23%)
PW: $6.16 MM (up 15%)
STB: $5.98 MM (up 14%)
Cravath: $5.8 MM (up 27%)
Cahill: $5.53 MM (up 21%)
Weil: $5.18 MM (up 15%)
Skadden: $5.088 MM (up 18%)
Milbank: $5.033 MM (up 12%)
Debevoise: $5.011 MM (up 10%)
Cleary: $4.698 MM (up 28%)
Cadwalader: $4.38 MM (up 72%)

I haven't been in biglaw that long, but these numbers are way higher than I would have ever imagined 4-5 years ago. I don't see how firms continue putting up these kinds of profits/RPL figures without continuing to reward associates via special bonuses.

Big slowdown in Q1 this year, we can kiss those bonuses goodbye.

Didn't realize Cadwalader was that profitable. Wow.

[Anonymous User]

Didn't realize Cadwalader was that profitable. Wow.

Didn't they have a big period of de-equitization?

[Anonymous User]

Saw this article yesterday about last year's financials for the traditional NY big law firms: https://www.law.com/americanlawyer/2022 ... llar-2021/

2021 Profits per (Equity) Partner
Wachtell: $8.4 MM (up 12%)
DPW: $7.01 MM (up 10%)
S&C: $6.385 MM (up 23%)
PW: $6.16 MM (up 15%)
STB: $5.98 MM (up 14%)
Cravath: $5.8 MM (up 27%)
Cahill: $5.53 MM (up 21%)
Weil: $5.18 MM (up 15%)
Skadden: $5.088 MM (up 18%)
Milbank: $5.033 MM (up 12%)
Debevoise: $5.011 MM (up 10%)
Cleary: $4.698 MM (up 28%)
Cadwalader: $4.38 MM (up 72%)

I haven't been in biglaw that long, but these numbers are way higher than I would have ever imagined 4-5 years ago. I don't see how firms continue putting up these kinds of profits/RPL figures without continuing to reward associates via special bonuses.

Wow. Cleary!

[Anonymous User]

Saw this article yesterday about last year's financials for the traditional NY big law firms: https://www.law.com/americanlawyer/2022 ... llar-2021/

2021 Profits per (Equity) Partner
Wachtell: $8.4 MM (up 12%)
DPW: $7.01 MM (up 10%)
S&C: $6.385 MM (up 23%)
PW: $6.16 MM (up 15%)
STB: $5.98 MM (up 14%)
Cravath: $5.8 MM (up 27%)
Cahill: $5.53 MM (up 21%)
Weil: $5.18 MM (up 15%)
Skadden: $5.088 MM (up 18%)
Milbank: $5.033 MM (up 12%)
Debevoise: $5.011 MM (up 10%)
Cleary: $4.698 MM (up 28%)
Cadwalader: $4.38 MM (up 72%)

I haven't been in biglaw that long, but these numbers are way higher than I would have ever imagined 4-5 years ago. I don't see how firms continue putting up these kinds of profits/RPL figures without continuing to reward associates via special bonuses.

Big slowdown in Q1 this year, we can kiss those bonuses goodbye.

Is this true generally in the marketplace? Cuz we are bustling at my firm. Closed a whole slew of deals this week with quarter end. I’m billing close to 3000 hours annualized and and when I last checked, my recovery was 110%? Without special bonuses, I’ll only earn 20% of the money received by the firm for my hours, which seems like a bum deal.

[Anonymous User]

Is this true generally in the marketplace? Cuz we are bustling at my firm. Closed a whole slew of deals this week with quarter end. I’m billing close to 3000 hours annualized and and when I last checked, my recovery was 110%? Without special bonuses, I’ll only earn 20% of the money received by the firm for my hours, which seems like a bum deal.

I don't see why this is so shocking to people. It's not a perfect analogy, but the labor costs on a $4 cup of coffee at Starbucks are like 50 cents, meaning Starbucks gets the rest for fixed costs and profits. Laborers rarely make a sizeable chunk of the revenue they bring in. They are just cogs.

It's not as if the clients come to the firm seeking out work from a particular associate. If they do, then that associate probably has a good shot at making partner, where they will get to share in the profits.

[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.

[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.

What is this guy going on about? I've literally never anything like this.

Anyway, you create a false dichotomy and a straw man argument. First, they don't have to fire you, but they also don't have to pay you more. Second, of course you're more capable than a random jobless junior. That's not the point, though. You're presumably one of many who can do your job, and clients aren't paying more and more to the firm because of you specifically.

[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...

[Anonymous User]

Saw this article yesterday about last year's financials for the traditional NY big law firms: https://www.law.com/americanlawyer/2022 ... llar-2021/

2021 Profits per (Equity) Partner
Wachtell: $8.4 MM (up 12%)
DPW: $7.01 MM (up 10%)
S&C: $6.385 MM (up 23%)
PW: $6.16 MM (up 15%)
STB: $5.98 MM (up 14%)
Cravath: $5.8 MM (up 27%)
Cahill: $5.53 MM (up 21%)
Weil: $5.18 MM (up 15%)
Skadden: $5.088 MM (up 18%)
Milbank: $5.033 MM (up 12%)
Debevoise: $5.011 MM (up 10%)
Cleary: $4.698 MM (up 28%)
Cadwalader: $4.38 MM (up 72%)

I haven't been in biglaw that long, but these numbers are way higher than I would have ever imagined 4-5 years ago. I don't see how firms continue putting up these kinds of profits/RPL figures without continuing to reward associates via special bonuses.

Big slowdown in Q1 this year, we can kiss those bonuses goodbye.

Didn't realize Cadwalader was that profitable. Wow.

I guess being the oldest law firm in America has its advantages.

[Anonymous User]

Are we thinking the Skadden-looking redacted special bonus announcement on BLB/NEP’s IG from Fishbowl is a cruel April Fools joke?

[Anonymous User]

Are we thinking the Skadden-looking redacted special bonus announcement on BLB/NEP’s IG from Fishbowl is a cruel April Fools joke?

It is missing punctuation and looks fake to my eyes. Also, it's one thing for firms to avoid giving raises to juniors since it is a baked in future cost, but only giving special bonuses to midlevels/seniors would be a very bad look

[Anonymous User]

Have heard rumblings that Skadden is planning to announce in the next few weeks. I’m at a different v10 but am familiar with someone that makes me comfortable about this intel. Will be interesting to see if they follow through. Think they also planned to do this last summer and didn’t.

Reviving this anon post as relevant now. Was this just a smart plant early on for a big April fools joke, or are we thinking the bonuses are real?

[Moneytrees]

Are we thinking the Skadden-looking redacted special bonus announcement on BLB/NEP’s IG from Fishbowl is a cruel April Fools joke?

It is missing punctuation and looks fake to my eyes. Also, it's one thing for firms to avoid giving raises to juniors since it is a baked in future cost, but only giving special bonuses to midlevels/seniors would be a very bad look

Skadden did it last year. I think firms and associates realize that midlevels and seniors are incredibly valuable in today's market. It wouldn't shock me if special bonuses, if there are any, are restricted to just midlevel and senior associates.

[Anonymous User]

I think firms and associates realize that midlevels and seniors are incredibly valuable in today's market. It wouldn't shock me if special bonuses, if there are any, are restricted to just midlevel and senior associates.

Tell that to redline psycho from the getting juniors to respond thread. He still seems to think we should just push everyone out.

[Anonymous User]

Are we thinking the Skadden-looking redacted special bonus announcement on BLB/NEP’s IG from Fishbowl is a cruel April Fools joke?

It is missing punctuation and looks fake to my eyes. Also, it's one thing for firms to avoid giving raises to juniors since it is a baked in future cost, but only giving special bonuses to midlevels/seniors would be a very bad look

Skadden did it last year. I think firms and associates realize that midlevels and seniors are incredibly valuable in today's market. It wouldn't shock me if special bonuses, if there are any, are restricted to just midlevel and senior associates.

Maybe. But at least with the relatively low figures for this supposed set of spring bonuses (only $11.5k for 4th years? Didn't 4th years get $44k between spring and fall last year?!), excluding juniors leaves wide open the prospect of a reraise that includes juniors. What's a one time cost of $5k per junior if your firm is going to be remembered by those juniors as a market leader in comp when they look to lateral as midlevels?

[Moneytrees]

Are we thinking the Skadden-looking redacted special bonus announcement on BLB/NEP’s IG from Fishbowl is a cruel April Fools joke?

It is missing punctuation and looks fake to my eyes. Also, it's one thing for firms to avoid giving raises to juniors since it is a baked in future cost, but only giving special bonuses to midlevels/seniors would be a very bad look

Skadden did it last year. I think firms and associates realize that midlevels and seniors are incredibly valuable in today's market. It wouldn't shock me if special bonuses, if there are any, are restricted to just midlevel and senior associates.

Maybe. But at least with the relatively low figures for this supposed set of spring bonuses (only $11.5k for 4th years? Didn't 4th years get $44k between spring and fall last year?!), excluding juniors leaves wide open the prospect of a reraise that includes juniors. What's a one time cost of $5k per junior if your firm is going to be remembered by those juniors as a market leader in comp when they look to lateral as midlevels?

The really low numbers compared to previous special bonuses makes me think the announcement is fake. I guess we will see.

[bigboybob]

Did anyone see that post on Instagram today announcing April bonuses for midlevels and above? Wondering wants the deal there...

[Yardbird]

Did anyone see that post on Instagram today announcing April bonuses for midlevels and above? Wondering wants the deal there...

Take a look at today’s date…

[bigboybob]

dammit that isnt funny. ugh. why people.

[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.