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Law Firms and their Staff Are Certainly Not Going Hungry in 2020, Unlike Millions of Families

2020 Bonuses: What Law Firms Are Giving Out This Year

Originally Published: October 1, 2020 | Republished by LIT: Dec. 12, 2020

UPDATED December 11, 2020 | Law firms have been divided in how they are responding financially to the economic upheaval caused by the coronavirus, especially when it comes to bonuses. Here is a roundup of where law firms stand on both special bonuses tied to work done during the pandemic and end-of-year bonuses.

Akin Gump Strauss Hauer & Feld
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: On track
On Oct. 21, the firm said it will be rounding out associates’ and counsel’s pay with a fall bonus, which will match other firms’ $7,500 to $40,0000 scale and hit bank accounts on Nov. 1.

Allen & Overy
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Dec. 7, the firm confirmed it would hand out year-end bonuses ranging from $15,000 to $100,000, based on seniority, and special bonuses ranging from $7,500 to $40,000.

Baker Botts
Pandemic work bonus: Undisclosed
On Nov. 4, the firm announced a second slate of “interim bonuses” to counsel and associates who made “exceptional contributions” between August and October. The firm had earlier offered a similar bonus for summertime work.

Baker Donelson
Pandemic work bonus: restored base pay
On Sept. 15, the firm confirmed a measure that will allow associates to earn back their previous salaries in a one-time bonus through extra workload and hours. According to a memo, associates and staff attorneys can earn a one-time bonus that will bring their total compensation back to 100% if they exceed 125% of their revenue plan and 90% of their hours target by Sept. 30. Similarly, those who achieve at least 110% of their revenue goal and 90% of their hours will be able to bring their compensation to 90% of base pay, and 85% compensation will be restored for attorneys that exceed 100% of revenue plan and 90% of their hours. Additionally, attorneys that achieved at least 110% of their hours target but have not exceeded one of the pay thresholds will receive a one-time payment that will bring their compensation to 90% of base pay.

Baker McKenzie
End-of-year bonus: $15,000-$100,000
On Nov. 12, the firm set in motion the 2020 year-end bonus season, with payouts that will range from $15,000 for associates who have been with the BigLaw firm since 2019 to $100,000 for those who have worked for it since 2012 or earlier. The firm said that its offerings could increase if other law firms set their scales higher.

Boies Schiller
End-of-year bonus: On track
On Nov. 2, the firm said year-end bonuses would be awarded in December, but did not comment on the special fall bonuses some organizations are handing out. Update; click here.

Clifford Chance
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Nov. 25, the firm announced that it would be handing out end-of-year bonuses beginning at $15,000 for the class of 2019 and maxing out at $100,000 for associates with more than seven years of seniority. The firm also announced special one-time bonuses of $7,500 to $40,000 “in recognition of your hard work and dedication during these exceptional times.”

Cooley
Pandemic work bonus: $2,500-$7,500     End-of-year bonus: On track
On Sept. 14, the firm reportedly said it will offer “special appreciation bonus” payments of $2,500 to $7,500 to associates, special counsel and of counsel, depending on how long they have been with the firm, in appreciation of the work performed by the lawyers amid the challenges presented by the novel coronavirus. Attorneys on track to significantly exceed an annual pace of 1,950 full-time equivalent billable hours stand to earn more than what they would otherwise receive based on their time of service. Cooley also told employees that normal end-of-year reviews and bonus payments are still planned for 2020. The firm will also offer an appreciation bonus to its professional staff at the end of September.

Cravath Swaine & Moore
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Nov. 23, the firm announced end-of-year bonuses would range from $15,000 for associates who started in 2019 to $100,000 for those who started in 2013. The firm also said associates will be receiving special bonuses ranging from $7,500 to $40,000 for their work during the pandemic.

Davis Polk & Wardwell
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Sept. 15, the firm told its U.S. associates they will receive bonuses ranging from $7,500 to $40,000 in recognition of their work during the “unprecedented” challenges that have presented themselves so far this year. The bonuses, which will be handed to associates Sept. 30, will not impact their usual year-end bonuses. The bonuses at Davis Polk include $7,500 for associates who graduated law school in the class of 2019, $10,000 for the class of 2018, $20,000 for the class of 2017, $27,500 for the class of 2016, $32,500 for the class of 2015, $37,000 for the class of 2014, and $40,000 for those in the class of 2013 and others more senior. On Dec. 1, the firm announced year-end bonuses ranging from $15,000 for the newest associates to a maximum of $100,000 for the most senior.

Debevoise & Plimpton
Pandemic work bonus: ~$7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Sept. 22, the firm said it would hand out pandemic work appreciation bonuses to associates during the last week of October, which will not impact their usual year-end bonuses. The bonuses being offered by Debevoise are on a similar scale to the ones used by Milbank LLP and Davis Polk, which set the base rate for the class of 2019 associates at $7,500, ranging up to $40,000 for the class of 2013 and others more senior. On Nov. 25, the firm announced end-of-year bonuses ranging from $15,000 for first-year associates to $100,000 for those with seven years of seniority or more.

Fenwick & West
Pandemic work bonus: $3,000-$32,000     End-of-year bonus: $15,000-$100,000
On Dec. 7, the firm confirmed it would hand out year-end bonuses ranging from $15,000 to $100,000, based on seniority. It is also handing out additional bonuses on a scale of $3,000 to $12,000, with an extra $20,000 bonus to its high performers who worked 2,300 qualifying hours or more.

Fried Frank
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Nov. 30, the firm announced traditional year-end bonuses of between $15,000 for first-year associates and $100,000 for those who have been with the firms since 2013 or earlier and special bonuses ranging from $7,500 to $40,000, which line up with bonuses several other firms gave out in the fall for work during the pandemic.

Goldberg Segalla
End-of-year bonus: On track
On Nov. 19, the firm announced it had revamped its 2020 bonus program and that the firm was on track to announce end-of-year bonuses in December.

Goodwin Procter
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: On track
On Oct. 8, the firm sent out a memo that said it will not hand out special pandemic-related bonuses this fall, but indicated it would consider rewarding associates’ hard work in January when it pays its annual merit bonuses. On Nov. 24, the firm announced it would pay nonpartner lawyers in the U.S. a special one-time bonus, ranging from $7,500 to $40,000 depending on class year and billable hours met, for work done throughout the year and the pandemic. Annual merit bonuses are still expected to be given out in January.

Hueston Hennigan
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: On track
On Sept. 17, the firm confirmed that it will be providing an additional bonus to associates this year in light of the challenges presented by the coronavirus pandemic that will range from $7,500 to $40,000 based on seniority. These will be in addition to their usual year-end bonuses.

Irell & Manella
Pandemic work bonus: $7,500-$40,000
On Sept. 18, the firm confirmed it is paying bonuses at the end of the month to attorneys in appreciation of their work during the COVID-19 pandemic. It will pay $7,500 to first-year associates, $10,000 to second-year associates, $20,000 to third-year associates, $27,500 to fourth-year associates, $32,500 to fifth-year associates, $37,000 to sixth-year associates, and $40,000 to seventh-year associates and those who have been with Irell longer.

Kramer Levin Naftalis & Frankel
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Dec. 7, the firm confirmed it would hand out year-end bonuses ranging from $15,000 to $100,000, based on seniority. It also announced special bonuses of $7,5000 to $40,000, contingent on working 1,800 bonus-eligible hours, of which 1,600 must be billable or spent on “partner-directed business development.”

Latham & Watkins
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: On track
On Oct. 29, the firm confirmed it will be providing fall bonuses ranging from $7,500 for first-year associates to $40,000 for attorneys with seven years or more of experience. The firm is also planning to conduct its normal end-of-year reviews and bonus handouts.

Mayer Brown
Pandemic work bonus: Undisclosed     End-of-year bonus: On track
On Sept. 14, the firm said that in an effort to address the months of salary reduction, it will award an additional discretionary bonus this year to high-performing income partners, of counsel and associates on top of “competitive” end-of-year bonuses.

Milbank
Pandemic work bonus: $3,750-$60,000     End-of-year bonus: $15,000-$100,000
On Sept. 16, Law360 learned the firm will offer “special one-time bonus” payments ranging from $3,750 to $60,000 to associates from the 2012 to 2019 classes, depending on how long they have been with the firm and how much work they’ve taken on during the pandemic. Associates with less than 80% utilization through Sept. 6, inclusive of pro bono and legal work for the firm, will receive 50% of their respective class bonus, while those with 110% utilization will score an additional bonus equal to 50% of their respective class bonus. The base rate for class of 2019 associates is $7,500, ranging up to $40,000 for class of 2013 and 2012 associates, according to the email. Bonuses are expected to be paid by Oct. 30 and will not affect year-end bonuses. On Nov. 24, the firm announced year-end bonuses ranging from $15,000 to $100,000.

Morgan Lewis
End-of-year bonus: $15,000-$100,000
On Nov. 25, the firm announced that it would be handing out end-of-year bonuses beginning at $15,000 for the class of 2019 and maxing out at $100,000 for associates with more than seven years of seniority.

O’Melveny & Myers
End-of-year bonus: On track
On Oct. 23, the firm confirmed it will not be providing fall bonuses, but that end-of-year bonuses will go forward as planned and that the firm will be “increasing our enhanced bonuses for deserving associates and counsel.”

Orrick Herrington & Sutcliffe
End-of-year bonus: On track
On Sept. 24, the firm said it will continue to offer associates annual bonuses matching its 2019 scale.

Paul Hastings
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Dec. 1, the firm announced year-end bonuses ranging from from $15,000 for the newest associates to a maximum of $100,000 for the most senior associates, and special one-time bonuses in the range of $7,500 to $40,000.

Paul Weiss Rifkind Wharton & Garrison
End-of-year bonus: $15,000-$100,000
On Oct. 28, Law360 confirmed the firm will not be providing fall bonuses. However, end-of-year bonuses will go on as planned and will take into account any “special bonuses paid by our peer firms,” according to an internal memo sent to associates and counsel and obtained by Law360. On Nov. 23, the firm announced it would be matching the scale of bonuses ranging from $15,000 to $100,000, set by Baker McKenzie and Cravath this season.

Proskauer Rose
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Nov. 30, the firm announced traditional year-end bonuses of between $15,000 for first-year associates and $100,000 for those who have been with the firm since 2013 or earlier for the majority of its offices, though it said compensation in New Orleans and Boca Raton, Florida, will be tied to local market rates. The firm also announced special bonuses ranging from $7,500 to $40,000, which line up with bonuses several other firms gave out in the fall for work during the pandemic.

Ropes & Gray
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Oct. 22, the firm confirmed it will not be giving out fall bonuses, but that end-of-year bonuses are expected, which will also take into account this year’s Covid-19 special bonus activity. On Nov. 25, the firm announced it would be handing out end-of-year bonuses beginning at $15,000 for the class of 2019 and maxing out at $100,000 for associates with more than seven years of seniority, as well as special one-time payouts ranging from $7,500 to $40,000. The firm said it would be adjusting its criteria for bonuses to take into account the effects of the pandemic and resulting economic downturn on attorneys’ activity. Associates are required to log 1,900 billable and pro bono hours to be eligible for bonuses, but this year, the firm will be more flexible with attorneys whose hours declined from April through July

Shearman & Sterling
Pandemic work bonus: $7,500-$40,000
On Sept. 28, the firm said it will offer associates in good standing as of Oct. 15 bonuses in appreciation of their work during the pandemic. The firm will pay $7,500 to first-year associates, $10,000 to second-year associates, $20,000 to third-year associates, $27,500 to fourth-year associates, $32,500 to fifth-year associates, $37,000 to sixth-year associates and $40,000 to seventh-year associates and those who have been with Shearman longer.

Simpson Thacher & Bartlett
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Oct. 23, the firm confirmed it had provided fall bonuses to associates on Oct. 15, matching the range of $7,500 to $40,000 scale set by several other firms. Year-end bonuses are still on track and will not be impacted by the fall bonuses. On Dec. 2, the firm announced year-end bonuses ranging from $15,000 to $100,000, based on seniority.

Skadden Arps Slate Meagher & Flom
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$110,000
On Oct. 8, the firm said in an internal video announcement that it will not hand out special pandemic-related bonuses this fall, but that it will consider paying larger end-of-year bonuses to keep pace with top-tier talent compensation. On Nov. 24, the firm announced end-of-year bonuses will range from $15,000 for associates who started in 2019 to $110,000 for those who have been with the firm since 2013 or earlier. The firm also said it would give out special bonuses for work done during the pandemic matching the $7,500 to $40,000 scale.

Squire Patton Boggs
Pandemic work bonus: Undisclosed     End-of-year bonus: On track
On Sept. 15, the firm said it will reward employees “who performed at extraordinary levels” during the reduced compensation period with a special bonus, and its existing bonus program will also remain in place.

Sullivan & Cromwell
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Sept. 22, the firm reportedly announced bonuses for association that matched a scale set by others, going from $7,500 for the class of 2019 associates to $40,000 for the class of 2013 and others more senior. On Dec. 7, the firm confirmed it would hand out year-end bonuses ranging from $15,000 to $100,000, based on seniority.

Weil Gotshal & Manges
Pandemic work bonus: $10,000-$50,000     End-of-year bonus: $15,000-$100,000
On Sept. 24, the firm confirmed a one-time package of bonus rewards for associates who worked during the COVID-19 crisis based on how many billable hours associates worked between Jan. 1 and Aug. 31. Associates who billed less than 1,800 hours will get a $10,000 bonus, the memo said. The payout will be $20,000 for those billing between 1,800 and 2,000 hours, $30,000 for those billing between 2,000 and 2,300 hours, $40,000 for those between 2,300 hours and 2,600 hours, and $50,000 for those billing more than 2,600 hours. The one-time payouts will not affect regular year-end bonuses, the firm said. On Dec. 1, the firm announced year-end bonuses ranging from from $15,000 for the newest associates to a maximum of $100,000 for the most senior associates.

Wilkinson Stekloff
Pandemic work bonus: $10,000     End-of-year bonus: $22,500 to $150,000
On Dec. 4, the firm confirmed it would hand out seniority-based end-of-year bonuses ranging from $22,500 to $150,000, representing a 50% increase from the scale Baker McKenzie set in November. The boutique is also planning to provide across-the-board special bonuses of $10,000.

Willkie Farr & Gallagher
Pandemic work bonus: $7,500-$40,000     End-of-year bonus: $15,000-$100,000
On Oct. 9, the firm said it will be offering cash awards ranging from $7,500 to $40,000, based on seniority, to associates for their work during the pandemic. Associates will also receive their traditional year-end bonuses in December. On Dec. 2, the firm announced year-end bonuses ranging from $15,000 to $100,000, based on seniority.

6 More Law Firms Reward Attorneys With End-Of-Year Cash

Law360 December 14, 2020

Susman Godfrey LLP, Locke Lord LLP, Wilson Sonsini Goodrich and Rosati PC, Mayer Brown LLP, Tensegrity Law Group LLP and Hogan Lovells were the latest law firms to announce end-of-year bonuses and other financial rewards for their attorneys on Monday.

Most firms matched the same scale that has become standard this year, with bonuses ranging from $15,000 for the class of 2019 to $100,000 for the most senior associates and a “special bonus” for work during the pandemic, set at $7,500 to $40,000.

Susman Godfrey blew the market-rate scale out of the water, particularly where more junior associates are concerned, in keeping with the trend of boutiques doling out lavish bonuses to compete with BigLaw.

The firm said it had paid bonuses to “all employees, including associates.” Associates’ bonuses begin at $80,000 for law school graduates from the class of 2018 and max out at $170,000 for the class of 2012 and above (the firm requires all associates to have completed a federal judicial clerkship, so the most junior associates at the firm are class of 2018).

The firm also announced the promotion of six associates to equity partners following their completion of the firm’s six-year partnership track.

“2020 has been a sobering year, with the death of our founder Steve Susman and the challenges of the COVID-19 pandemic,” managing partners Kalpana Srinivasan and Neal Manne said in a statement. “That Susman Godfrey had a truly superb year financially makes us even more proud of the firm and everyone who works for it.”

Wilson Sonsini will be paying out market-rate end-of-year and special bonuses to associates who billed at least 1,950 hours, putting the maximum bonus at $140,000, the firm confirmed. Associates who failed to meet the targets will still receive a special bonus of $2,500 to $7,500, depending on seniority.

Hogan Lovells will also be matching the usual scale on year-end bonuses, but will require a minimum of 2,000 billable hours, “which includes unlimited pro bono hours if you achieved at least 1,850 billable hours,” according to a Monday memo.

The special pandemic bonus that has become standard this year will be paid to all first- and second-year associates unconditionally, as well as to third-year and more senior associates who billed at least 1,900 hours, Hogan Lovells confirmed. Depending on “class and level of achievement,” associates could take home as much as $160,000 in bonus money, the memo said.

Locke Lord did not specify amounts or criteria for its bonuses, which will hit attorneys’ bank accounts Dec. 31.

“While various factors are considered, this year more than ever we will be rewarding those who have really stepped up to the plate and gone above and beyond what has been asked of them during these uncertain times,” chair David F. Taylor told employees in a Monday email obtained by Law360.

The firm did tell non-equity attorneys, patent agents, public policy advisers and staff on Monday that it would be paying them back the money they lost to pay cuts the firm made at the onset of the COVID-19 pandemic. It will also restore salaries to pre-pandemic levels.

“Locke Lord was fortunate that through prudent financial planning, a strong start to the year and no debt, we did not have to take more drastic steps that many other law firms implemented,” Taylor said.

Mayer Brown LLP associates will receive special bonuses on the market-rate scale regardless of how many hours they billed, the firm confirmed. The firm will pay out end-of-year bonuses in February after it has calculated associates’ billable hours.

Tensegrity Law Group did not buck the trend for boutiques and awarded bonuses well in excess of the BigLaw market rate, with associates from the classes of 2015 and 2016 raking in $165,000 and $132,500, respectively, according to an email obtained by Above The Law.

The bonuses are not dependent on a billable hour quota, because the firm has ditched the billable hour fee structure.

2 More BigLaw Firms Announce Year-End Bonuses

Law360 December 15, 2020

Akin Gump Strauss Hauer & Feld LLP and Sheppard Mullin Richter & Hampton LLP are offering end-of-year bonuses at scales similar to the prevailing BigLaw market rate, the firms confirmed Tuesday.

Akin Gump revealed that bonuses will range from $15,000 for first-year associates to $100,000 for those who have been with the firm since 2013 or earlier. Some associates whose performance this year has been categorized as “extraordinary” could be in line for bonuses above that scale, the firm confirmed.

“While there is no hard and fast productivity level for receiving a bonus, in assessing the full range of criteria productivity at or above 1950 hours is in line with our expectations,” the firm said in a memo.

The year-end bonuses are on top of special, pandemic-related rewards of up to $40,000 the firm offered in the fall.

Sheppard Mullin, meanwhile, announced a range of different scales based on billable hours. Associates who accumulated 2,000 billable hours will receive bonuses at the scale between $15,000 and $100,000, which was first adopted by Baker McKenzie and matched by several BigLaw firms. Those who recorded 2,200 or 2,400 hours could be in line for seniority-based bonuses of up to $110,000 and $120,000, respectively.

Shepard Mullin did not mention special bonuses in addition to the end-of-year rewards in its announcement. However, it said it was handing out additional “discretionary bonuses for extraordinary contributions” to 128 associates, according to a copy obtained by Law360.

Sheppard Mullin Chief HR Officer Bess Sully told Law360 that those bonuses recognize the COVID-19-related work associates were handling and that there is no set scale.

Cravath Swaine & Moore LLP on Nov. 23 announced it would hand out special bonuses of up to $40,000 in addition to its regular year-end bonuses. A host of firms, including Skadden Arps Slate Meagher & Flom LLP, Cleary Gottlieb Steen & Hamilton LLP and Proskauer Rose LLP, have since said they would match both those bonus scales to round out the year.

The moves come after firms including Akin, Davis Polk & Wardell LLP and Latham & Watkins LLP doled out special bonuses in the fall.

The end-of-year bonus activity follows a period in which law firms generally proved resilient amid the economic recession caused by the coronavirus pandemic. Many of the fears about significant declines in business did not come to pass, prompting many firms to roll back some of the austerity measures they implemented in the spring.

Revenue for the legal industry grew by about 5% over the last nine months of the year, a Citi Private Bank Law Firm Group report found. However, the report noted that the biggest and most profitable firms were “substantially” outperforming the rest of the industry.

3 More Firms Join End-of-Year Bonus Season

Law360 | December 17, 2020

Litigation boutique Roche Cyrulnik Freedman LLP confirmed to Law360 on Thursday that it is handing out bonuses above market rate, while Covington and Winston & Strawn are reportedly offering U.S. associates special monetary rewards on top of end-of-year bonuses of up to $100,000.

Roche Cyrulnik Freedman, which was formed by Boies Schiller Flexner LLP lawyers earlier this year, announced bonuses ranging from $25,000 for first-year associates to $130,000 for its most senior associates, the firm said. The firm has 10 associates on its 25-lawyer staff.

Covington & Burling LLP and Winston & Strawn LLP adopted the scale first used by Baker McKenzie LLP, with seniority-based bonuses ranging from $15,000 for first-year associates to $100,000 for those who joined in 2013 or earlier, according to industry blog Above The Law. They are also offering special bonuses between $7,500 and $40,000. Winston reportedly said that associates would need to meet billable hours targets to receive the entirety of the special bonus for their particular class.

Winston & Strawn declined to comment when asked to confirm the report on bonuses. Covington did not return requests for comment from Law360.

The bonus moves follow Cravath Swaine & Moore’s decision in late November to hand out multiple bonuses to associates to end 2020, a step that prompted several BigLaw firms to follow suit in the intervening weeks. Several other firms, including Davis Polk & Wardell LLP and Milbank LLP, handed out special bonuses in the fall to reward work during the pandemic.

The 2020 bonus season follows a nine-month period in which the legal industry generally withstood the more harmful impacts of the economic recession caused by the coronavirus. However, the crisis still caused a number of firms, including Winston & Strawn, to implement austerity measures.

Winston & Strawn in September said it laid off an undisclosed number of employees as part of an “innovative” restructuring prompted by the pandemic and the shift to remote work. The move came after the firm reduced partner distributions by 50% between April and June.

Covington, which was the 14th biggest firm in the U.S. in 2019, avoided salary cuts or layoffs in the spring, but shortened its summer associate program and conducted it remotely.

Covington Chair Doug Gibson told Law360 last month that the firm was uniquely positioned for the pandemic, with a team of more than 100 lawyers working with clients in industries including pharmaceuticals and biotech.

“When the pandemic arose, we saw a significant spike in activity across many practices that differentiate our firm,” Gibson said.

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Law Firms and their Staff Are Certainly Not Going Hungry in 2020, Unlike Millions of Families
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