Biglaw

Firm's Complex Bonus Structure Provides Most Associates With Less Than Their Peers

Not every firm can pay like Cravath.

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When we discuss the emerging break between the haves and have nots among the Am Law 100, Bryan Cave is the sort of firm on the wrong side of that divide. The industry is pulling work from most of the top firms in favor of smaller shops or handling more in-house while simultaneously doubling down on the truly elite firms creating a tier of top Biglaw firms that seem stuck in neutral. Dig a little deeper on Bryan Cave and there’s a firm that’s suffered declines in gross revenue for three straight years, making it a poster child for this phenomenon sweeping the Am Law 100.

So it’s probably unsurprising that Bryan Cave’s bonuses don’t reach the heights that Cravath can afford. The firm’s bonus memo is now out and it’s eschewing the standard class year formula for a matrix of two class year tiers and billable hours that leave most associates compensated well-below their peers at other firms.

For the sake of clarity, here are the bonus ranges associates can reach based on where their billable hours are on a range of 1900-2300.

Class of 2016 — $10K-30K
Class of 2015 — $10K-30K
Class of 2014 — $15K-45K
Class of 2013 — $15K-45K
Class of 2012 & Earlier — $20K-60K

So to put this in perspective, a 2016 grad billing 2000 hours would receive $15,000 which would put them perfectly in line with their peers. And a 2016 grad billing 2300 hours can bring home $30,000, which is a sizable advantage over most firms.

But the 2015 grad faces another reality. A 2015 grad billing a standard 2000 hours would receive $15,000, while the same lawyer on the Cravath scale would bring home $25,000. The class of 2015 Bryan Cave lawyer would need to bill 2200 hours before they reached the Cravath par.

And it gets more bleak as we move up the scale, with associates in the class of 2014 and earlier unable to approach the Cravath scale no matter how many hours they bill.

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Last year, Bryan Cave saw revenue decline for the third year in a row, yet posted a small lift in PPP. If that outcome repeats itself this year, we can look back at this bonus announcement as evidence of a strategy.

(Full memo on the next page…)

So, how do you feel about this year’s bonus? Feel free to sound off by email, by text message (646-820-8477), or by tweet (@ATLblog). All comments will be kept anonymous.

Please help us help you when it comes to bonus news at other firms. As soon as your firm’s bonus memo comes out, please email it to us (subject line: “[Firm Name] Bonus”) or text us (646-820-8477). 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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HeadshotJoe Patrice is an editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.

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