Announcing 2022 Special Bonuses Forum

[Anonymous User]

MBB is reportedly bumping their base pay 15k. It's not specifically relevant to Biglaw, and I don't care to turn this into a consulting v. Biglaw thread, but I want my fucking money.

Did MBB also raise when biglaw went to 215?

[Anonymous User]

MBB is reportedly bumping their base pay 15k. It's not specifically relevant to Biglaw, and I don't care to turn this into a consulting v. Biglaw thread, but I want my fucking money.

Did MBB also raise when biglaw went to 215?

No.

But are people expecting firm ppp to be down this year?

[Anonymous User]

I expect if you re-upped this analysis through August 2022, you would find a similar drop (double-digit percentage-wise) in dealmaking activity. Implying a material drop in revenue.

PPP will definitely fall this year relative to 2021 — absent some truly toe-curling accounting tricks that firms will likely pull when reporting their stats to ALM.

[Anonymous User]

I expect if you re-upped this analysis through August 2022, you would find a similar drop (double-digit percentage-wise) in dealmaking activity. Implying a material drop in revenue.

PPP will definitely fall this year relative to 2021 — absent some truly toe-curling accounting tricks that firms will likely pull when reporting their stats to ALM.

I looked at another V10, here are my counts (with q3 through august in both years)

........2022.....2021.....change
q3.......23.......37........-38%
q2.......41.......47........-13%
q1........40......48.......-17%

[NoLongerALurker]

What’s everyone thinking re EoY bonuses? Same as last year but without the “special” add on?

[Anonymous User]

Dealmaking is increasing exponentially in the second half, now that valuations are down. Moroever, litigation, and IP litigation especially, are booming. Let’s not forget that Quinn Emmanuel has NO corporate practice at all, yet continually reigns as one of the most profitable firms in the country.

[Anonymous User]

Dealmaking is increasing exponentially in the second half, now that valuations are down. Moroever, litigation, and IP litigation especially, are booming. Let’s not forget that Quinn Emmanuel has NO corporate practice at all, yet continually reigns as one of the most profitable firms in the country.

And when has Quinn lead the charge on bonuses besides adding marginal kickers for enormous hours?

[Anonymous User]

I think its success (as well as other litigation-primary firms like King and Spalding) renders highly suspect the association between M&A suckage and overall firm revenue and profitability.

[Anonymous User]

I think its success (as well as other litigation-primary firms like King and Spalding) renders highly suspect the association between M&A suckage and overall firm revenue and profitability.

K&S is what now

[Anonymous User]

I think its success (as well as other litigation-primary firms like King and Spalding) renders highly suspect the association between M&A suckage and overall firm revenue and profitability.

That may be true for a few select firms, but litigation heavy firms have never driven bonus news. And QE's success is a red herring - let's not treat a trial-focused plaintiff-side firm as reflective of the industry as a whole. Are you honestly predicting that QE or K&S (or some other lit shop) will have such a banner year on lit that they'll move the needle on bonuses (and that other firms will follow)? Or are you just trying to nit pick points about what practices are up or down?

[Anonymous User]

Just that 38 percent decline in m&a does not equal 38 percent decline in revenue or profit. I am sure profits will be somewhat lower this year, but not materially so. And associate compensation should reflect that. I’m in patent litigation personally, and I want my fucking money

[Anonymous User]

Just that 38 percent decline in m&a does not equal 38 percent decline in revenue or profit. I am sure profits will be somewhat lower this year, but not materially so. And associate compensation should reflect that. I’m in patent litigation personally, and I want my fucking money

Agree. Not trying to be overly optimistic, but there are some offsets to slower M&A practices. Other practices are busier, rates have increased and overhead possibly decreased w/ slower hiring.

[Anonymous User]

Just that 38 percent decline in m&a does not equal 38 percent decline in revenue or profit. I am sure profits will be somewhat lower this year, but not materially so. And associate compensation should reflect that. I’m in patent litigation personally, and I want my fucking money

Agree. Not trying to be overly optimistic, but there are some offsets to slower M&A practices. Other practices are busier, rates have increased and overhead possibly decreased w/ slower hiring.

Sorry you folks are being so unclear on the point it's almost not even worth responding. What are you trying to prove here? That we'll get bonuses? Yeah sure, but nobody here is doubting that. That we'll get bigger bonuses? Nice try - no firm in their right mind is going to raise when they and most other firms are seeing lower profits. That we have a shot at last year's special bonus? Maybe. You could be right that it's not all doom and gloom this year, but the whole point of calling it a special bonus was that they wouldn't have to give it out when things go down hill. Unless firms think they need it for retention, they're going to try to drop it as soon as they can. And corporate is the only practice area that's driven bonus news in the past.

TL;DR fighting about the margins and whether it's all bad or only partially bad doesn't really seem to move the needle.

[Anonymous User]

Just that 38 percent decline in m&a does not equal 38 percent decline in revenue or profit. I am sure profits will be somewhat lower this year, but not materially so. And associate compensation should reflect that. I’m in patent litigation personally, and I want my fucking money

Agree. Not trying to be overly optimistic, but there are some offsets to slower M&A practices. Other practices are busier, rates have increased and overhead possibly decreased w/ slower hiring.

Sorry you folks are being so unclear on the point it's almost not even worth responding. What are you trying to prove here? That we'll get bonuses? Yeah sure, but nobody here is doubting that. That we'll get bigger bonuses? Nice try - no firm in their right mind is going to raise when they and most other firms are seeing lower profits. That we have a shot at last year's special bonus? Maybe. You could be right that it's not all doom and gloom this year, but the whole point of calling it a special bonus was that they wouldn't have to give it out when things go down hill. Unless firms think they need it for retention, they're going to try to drop it as soon as they can. And corporate is the only practice area that's driven bonus news in the past.

TL;DR fighting about the margins and whether it's all bad or only partially bad doesn't really seem to move the needle.

I think the question at this point is whether the EOY bonuses will include last year's EOY "special" bonus.
Whether there will be a decrease in PPP or numbers will stay flat is relevant to that question, as is retention and other factors mentioned upthread. People are making observations on all sides. That's the point of this discussion.

[Anonymous User]

Reality is, you lot will complain but ultimately suck up working for substantially less money this year (after taking into account no special bonuses and high inflation). The labor market isn’t tight anymore. Enjoy…

[Anonymous User]

Frankly, if firms were to advertise first year roles as foot-in-the-door Biglaw opportunities and pay minimum wage, they’d still have candidates. It’d include some hard working grinder types who’d actually do a decent job. Profitability and PEP are the name of the game, friends. Associates are fungible, and are often willing to do a lot to have jobs, so they can achieve whatever we tell them are worthy long term goals (or simply to avoid the disgrace of being stealthed).

[Anonymous User]

Reality is, you lot will complain but ultimately suck up working for substantially less money this year (after taking into account no special bonuses and high inflation). The labor market isn’t tight anymore. Enjoy…

I sleep in a big bed with my wife.

[Anonymous User]

Reality is, you lot will complain but ultimately suck up working for substantially less money this year (after taking into account no special bonuses and high inflation). The labor market isn’t tight anymore. Enjoy…

I sleep in a big bed with my wife.

Me too. And we’ll enjoy our trip to Saint Barthélemy courtesy of the discontinuance of special bonuses.

[Ultramar vistas]

We’re now at the stage of the downturn where AmLaw is posting stories about hiring freezes at major law firms and speculating about layoffs. There’s literally zero chance of widespread special bonuses, and it’s not worth discussing.

[Anonymous User]

I literally get 15 thirsty lateral recruitment emails per day for patent litigation. And the associate annualized average thus far at my firm is 2000. That's exactly what it was last year.

Reed Smith is not a bellwether of Biglaw, and Cooley's "hiring freeze" is limited just to some corporate practice groups.

[Anonymous User]

Frankly, if firms were to advertise first year roles as foot-in-the-door Biglaw opportunities and pay minimum wage, they’d still have candidates. It’d include some hard working grinder types who’d actually do a decent job. Profitability and PEP are the name of the game, friends. Associates are fungible, and are often willing to do a lot to have jobs, so they can achieve whatever we tell them are worthy long term goals (or simply to avoid the disgrace of being stealthed).

Oooh someone has a dominatrix..

[Anonymous User]

I literally get 15 thirsty lateral recruitment emails per day for patent litigation. And the associate annualized average thus far at my firm is 2000. That's exactly what it was last year.

Reed Smith is not a bellwether of Biglaw, and Cooley's "hiring freeze" is limited just to some corporate practice groups.

Yeah because Patent litigation and people working 2k hours is what drove the bonus hype last year...

[Wanderingdrock]

Reality is, you lot will complain but ultimately suck up working for substantially less money this year (after taking into account no special bonuses and high inflation). The labor market isn’t tight anymore. Enjoy…

Brave anon. Asshole partner or jealous in-house?

[Ultramar vistas]

I literally get 15 thirsty lateral recruitment emails per day for patent litigation. And the associate annualized average thus far at my firm is 2000. That's exactly what it was last year.

Reed Smith is not a bellwether of Biglaw, and Cooley's "hiring freeze" is limited just to some corporate practice groups.

Maybe some patent lit specific law firms will give special bonuses then!

But for biglaw in general, special bonuses are not happening. Reed Smith and Cooley are great bellwethers for biglaw generally - if a journalist is able to get sources for hiring freezes at “some corporate practice groups” at those firms, it’s indicative of a general market malaise that rules out special bonuses. Idk why this is even an argument. I want more money too, you just have to know what’s realistic right now.

[Anonymous User]

Reality is, you lot will complain but ultimately suck up working for substantially less money this year (after taking into account no special bonuses and high inflation). The labor market isn’t tight anymore. Enjoy…

Brave anon. Asshole partner or jealous in-house?

Guessing 2L who is above it all. Gonna do a summer associate then just enough biglaw to pay off debt. Then save the whales.