Top 20 Biglaw Firm Announces Additional Special Bonuses 

Biglaw bonus season is nearly upon us, and the lateral market is hot, hot, hot. Associates are expecting bigger and better year-end bonuses than ever before, and they know if they don’t receive them, they’ll be happily welcomed at another firm that may be more willing to show them the money.

As far as special bonuses are concerned, however, associates don’t think they’ll be seeing them again. We released the results of our annual bonus survey just yesterday, and a little more than 55% of respondents reported that they do not believe any additional special bonuses will be offered. One firm just decided to blow associates’ expectations out of the water when it comes to special bonuses — but there’s a catch.

Last week Paul Weiss informed all associates and counsel of a discretionary special bonus program, the key word there being discretionary.

In a memo announcing the special bonuses, chairman Brad Karp provided the details on those who may be eligible to receive them:

This special bonus is in addition to our class-year salaries and bonuses. It is designed to provide an additional reward for those associates and counsel who exhibited exceptional commitment in support of our firm and our clients during the first six months of 2021. Another special bonus payment for exceptional commitment covering the second half of 2021 will be distributed early next year.

Those receiving this special bonus will be notified by your practice group leaders the week of November 8th, and the payment will be reflected in your November 15th paycheck.

That’s right, Paul Weiss is offering associates and counsel two rounds of special bonus payments for extraordinary performance. It looks like congratulations are in order for some lawyers at the firm… but not all.

 "They are doing it on a group by group basis like Skadden to make it harder to copy," reports an insider at the firm. If you recall, Skadden has reportedly been handing out retention bonuses to associates in certain practice groups, but the firm has been keeping it rather hush-hush, with no memo to speak of acknowledging the program’s existence.

Are practice-based and performance-based special bonuses the only way that additional cash compensation will be flowing throughout Biglaw this bonus season? To be blunt, this may be the best that associates can hope for. The existing year-end bonus scale has had staying power for years on end, and for good reason: law firm leaders don’t want to set themselves up to fail if they’re unable to match the baseline bonus the following year.

Associates should keep an eye out for more special bonuses, but until a firm announces a payment grid, they shouldn’t expect them to be universal in nature.

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo is paying an hours-based bonus ranging from $20,000 to $40,000 for associates in March 2022, Law.com said. Mintz Levin also paid a special bonus in September.

To be eligible for the new bonus, associates must bill 1,850 hours as of Feb. 28, according to Law.com. Mintz Levin’s fiscal year ends March 31.

Michelle Fivel, a partner at legal recruiting firm Major, Lindsey & Africa, said she has "little doubt" that major law firms will continue to use non-traditional bonuses to stay competitive and meet intense client demand, especially for corporate work.

"They’re all trying to attract talent, particularly on the transactional side," Fivel said. "And money is a big lever that they’re trying to pull during the recruitment process and retention process."

The special bonus trend took hold in the industry last fall, as high workloads for junior and mid-level lawyers collided with the extra stresses and home responsibilities of the pandemic. Willkie Farr & Gallagher kicked off another bonus round in March, pledging to give associates from $7,500 to $40,000 based on class year. Davis Polk shortly after upped the ante, announcing two-installment bonuses that ranged from $12,000 to $64,000.

Many firms also raised salaries during the summer, with top market pay increasing from $190,000 to above $200,000 for first-year associates in certain markets.

Source: ABA, Above the Law, Reuters