Associates At This Firm Are REALLY Pissed About Their Bonuses...
Associates at this firm say morale is terrible.
… and they haven’t even received them yet.
Earlier this month, we asked readers to get in touch with us if they were angry about their bonuses. This week, we received a slew of complaints from associates at Irell & Manella, the elite California firm that was once known for its market-beating bonuses. Unfortunately, in recent years, the firm’s bonus bounty — while still better than the standard market match — has been smaller than usual. In fact, since 2011, when the firm paid double the Cravath scale, Irell’s bonus payouts have shrunk in size each year. Considering the fact that many associates could have jumped ship to Hueston Hennigan, a firm that announced incredibly generous bonuses this week, on top of a spring bonus paid earlier this year, those who remained at Irell are understandably upset. Here’s a gripe we received from one Irell associate:
Associate morale at Irell is terrible. The firm seems to be squeezing out more associates. Meanwhile, across the way we see Hueston Hennigan flourishing and richly rewarding their associates. People around here are kind of depressed.
Everyone is hoping the firm will step up and be competitive with Hueston Hennigan, but no one thinks it will happen. For years, Irell was dominant on the compensation front. People came to Irell because Irell could not be beat compensation wise. That is no longer true.
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A second Irell tipster contacted us with the following information: “All the associates feel worn out and let down. The firm hasn’t even announced the MEETING to announce bonuses yet.” Given that Irell usually announces its bonuses before Christmas, that means there’s going to be a meeting next week, or the firm is going to break with tradition and keep its associates waiting until after the holiday.
What do Irell associates think will happen when their bonuses are finally announced?
The consensus among associates seems to be they will do the same they did last year. The firm usually comes in over Cravath, but considering the Hueston Hennigan bonuses, I think people are going to be disappointed anyway.
For the record, this is what the Irell bonuses looked like last year (with the market bonus, i.e., Cravath, indicated parenthetically). We’ve updated this for the 2016 scale:
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Class of 2016: 20K (15K)
Class of 2015: 20K (15K)
Class of 2014: 30K (25K)
Class of 2013: 60K (50K)
Class of 2012: 75K (65K)
Class of 2011: 90K (80K)
Class of 2010: 105K (90K)
Class of 2009: 115K (100K)
Class of 2008: 120K (100K)
If and when Irell pays out the exact same bonus scale as it did last year, associates who opted to remain with the firm are going to feel pretty hurt. We think that this Irell associate really hit the nail on the head with her commentary about bonuses:
No one wants to feel like the associates who deserted to HH are doing better than the associates who decided to stay and be loyal. It’s personal. The people who stayed, they want to feel like they made the right choice and that the firm recognizes and appreciates them. That’s where it is lacking — a lot of associates here don’t feel appreciated.
A final Irell associate described the firm’s partnership as “tone deaf,” “blind to outside perception,” and “out of touch.” Will those in charge of the firm even care that its associates are so upset? We certainly hope so, but if not, we have a feeling that a certain boutique law firm would be happy to harbor some additional Irell & Manella refugees.
So who else out there knows the holidays won’t be happy (at least money-wise)? Drop us an email and let us know — we’d love to hear your complaints. Funny, biting, or otherwise interesting responses may be published anonymously here on Above the Law.
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Earlier: So Who Is Pissed About Their Bonuses?!?
Staci Zaretsky is an editor at Above the Law. She’d love to hear from you, so feel free to email her with any tips, questions, or comments. You can follow her on Twitter or connect with her on LinkedIn.
