Hours v Bonus Forum

[Anonymous User]

In a weird position. A firm offered a good signing bonus (around $75k) and guaranteed non-pro rated bonus. Firm is known to be a sweatshop for my practice group (have heard 2500+ hours for some associates). The firm has no minimum requirement, but I don’t think there’s any possibility I bill under 2100 or so (annualized). I’ve spoken to a few people who work/worked there, and I’ve been told that 2500 is abnormal, but no one ever billed under 1900. Midlevel here.

Current firm is market paying as well, but it has a billable requirement for market bonus (1900). I’m not going to hit that. At the rate I’m going at, I’ll probably be closer to 1700. There is a near 0 chance I get asked to leave at 1600-1900 hours since I know the other associates in my group regularly bill way under 1900. The firm doesn’t seem to care about it since it has the hours requirement for bonus. The hours I’m billing has been helping me avoid burnout, and I think I could do this for 3+ more years (stress still sucks because clients are annoying).

At what point is the extra money going to outweigh the hours? Just curious where everyone would fall.

[Anonymous User]

It would be hard for me to turn down $165,000 to switch firms (assuming 5th year) knowing that you could lateral to a better lifestyle fit as early as next year and no one would care, if you are concerned about resume etc. Leaving both the signing and year-end bonuses on the table, since you won't get either at your current firm this year, is just too much. I would lateral to any biglaw firm immediately if they were going to increase my 2022 comp by $165k.

The only reason I would not do this is if I loved my current firm, was confident that I would make partner, and I wanted to make partner.

[Anonymous User]

That would be a lot of money to leave on the table. However, just understand it will hurt. I would be prepared to lateral again a year after and then it still is a question if you would find a gig that is as comfortable as your current firm. I think it really depends how much longer you want to stay in Biglaw. If it is for just two, maybe three more years, I'd try and get as much money as possible and lateral once or twice. If you want to stay for longer than that, I think maybe just staying would be better, as you will make more money in the long run and maybe lateral in two years for one more pay day, if that is possible.

[attorney589753]

If it's a good deal for you, it's definitely a good deal for them. You're probably going to work a lot for the extra bonus. Money is nice but avoiding burnout is nice too — tough decision.

[MarcusH]

I'd give up bonuses in a heartbeat for market salary and < 1700 hours. Be very cautious, there aren't many jobs like that out there.

[stickershocked]

I'd give up bonuses in a heartbeat for market salary and < 1700 hours. Be very cautious, there aren't many jobs like that out there.

Agreed. The difference between even 1900 and 2100 in terms of QOL is almost immeasurable, to say nothing about what 2500 is actually like. Remember that your efficiency rate (i.e., the percent of time "worked" that gets picked up as billable hours) doesn't really increase with billables. For example, for me last year, I "billed" around 2400 and probably worked (i.e., at my desk and available) at least 3000 hours.

[Anonymous User]

I lateraled to v10 for something similar and regret it. Focus on getting substantive experience and less about each incremental dollar. Realize that if you can bill 2500 then that can also ramp higher (225 months blast up to 275)… just not worth it.

And if you go in-house, employers like seeing steady employment at the same place. Rather than moving, stay a year or two extra while enjoying your life (at least to some extent). Realize also that one move can start a chain effect of jumping that looks bad. How many posts start with “looking to lateral again after 5 months need advice”….

Good luck

[Wanderingdrock]

One way to look at it: is there a tipping point you feel confident you could identify now at which you think you'd probably drop out of Biglaw? One way I've thought about my job is that, if it gets to the point that trying to make an hours target will cause me to burn out and leave a year sooner than if I hadn't burned out, it's worth it to say "Screw the hours target" and work below target for another year or two, since the alternative for me would likely be going in-house or to the government. An extra year of making 350-400k is worth it if all I'm giving up is ~100k in bonus, because the alternative is likely more than 100k less.

Of course, if you think you could just rinse-and-repeat on the lateral decision, maybe that works.