BREAKING: Biglaw Bonus Season Comes Early (And No, It's Not Cravath!)
WOW -- bonuses are here!
Bonus season has officially arrived — and it’s here SUPER early!
It’s actually a bit shocking that Biglaw bonus season is here so soon. This is actually the third earliest time that Biglaw bonuses have been announced since 2006. But what comes as an even bigger shocker is the fact that Cravath was not the firm to make the first move on year-end bonuses.
Which firm is kicking off bonus season early this year?
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This is a nice little Veterans Day gift from … Baker McKenzie. Wow! Even though Baker is the fourth highest-grossing firm in the country with $2.92 billion in revenue in 2019, this is very unexpected behavior. The global firm shocked its associates this morning by announcing this year’s bonuses for its U.S. associates.
So, let’s get into the details. What do the bonuses look like this year?
| Class | Bonus |
| 2019 | $15,000 |
| 2018 | $25,000 |
| 2017 | $50,000 |
| 2016 | $65,000 |
| 2015 | $80,000 |
| 2014 | $90,000 |
| 2013 | $100,000 |
| 2012 and more senior | $100,000 |
This is the same exact bonus scale that’s been making the Biglaw rounds for years (just as 80 percent of our readers predicted it would be). But who can really complain about getting this much cash during a pandemic? We’ll get to that later.
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When announcing its bonus scale, Baker McKenzie not only promised to match any increases in the market should they occur, but the firm also noted that its salary reductions (which took effect on May 1) would end on November 30, 2020, one month earlier than previously planned. On top of all of that good news, the firm will additionally reward top performers during the coronavirus crisis whose practices were impacted by the economic downturn, plus others who “demonstrat[ed] exemplary performance.” We don’t know what those additional monetary rewards look like yet.
(It should be noted, however, that Baker McKenzie did not hand out appreciation bonuses to its associates earlier this fall, and has not committed to offering them at this time, either. Davis Polk set the standard on those bonuses, which ranged from $7,500 to $40,000. That said, Baker McKenzie is technically already offering below-market bonuses. Given that the market increased before the firm even announced its year-end bonuses, will it still make the match? This is a firm that recently conducted attorney layoffs, after all, so suppose we’ll have to wait and see. As we mentioned just yesterday, this year, there will be different tiers set for compensation if not all firms offer additional bonus dollars to their associates on top of their standard bonuses to truly match the market. We just didn’t think it would happen this soon.)
When announcing this year’s bonuses, Colin Murray, Baker McKenzie’s North America Chief Executive Officer, said, “The firm would like to express our sincere appreciation for our associates’ hard work on behalf of clients and also for navigating the many personal and professional challenges brought on by COVID-19.”
Congratulations to everyone at the firm, and congratulations to all other associates who may be receiving bonus news sooner than expected this year.
(Flip to the next page to read the full memo.)
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Remember everyone, we depend on your tips to stay on top of important bonus updates, so when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.
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Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.
