Associate Bonus Watch: Another Market Match (With Extra Cash For High Billers)

Is Biglaw bonus money a form of hazard pay?

onDecember 18, 2015 at 5:37 PMDecember 18, 2015 at 5:18 PM

money pocketed by man in suit Is Biglaw bonus money a form of hazard pay? Is it extra compensation given to young lawyers for putting up with long hours, high stress, and abusive bosses?

In a recent conversation, Above the Law columnist Zach Abramowitz interviewed lawyer turned writer Lindsay Cameron about her new novel, Biglaw (affiliate link). The book depicts a nightmarish law firm environment, populated by passive-aggressive as well as aggressive-aggressive partners (aka “screamers”). It’s well worth reading, for the reasons stated in Harry Graff’s book review, and it would make an excellent holiday gift.

And for those of you at Schulte Roth & Zabel, it might be fun to figure out if any of the characters in the novel, including some very unpleasant partners, are based on lawyers at your firm. Both Zach Abramowitz and Lindsay Cameron worked at SRZ, and in their online chat, they play a little “cat and mouse” game: Abramowitz tries to play up the possible Schulte connection, saying that Biglaw‘s fictional firm of “F&D” sounds an awful lot like SRZ, while Cameron claims that it’s a composite of many firms. Who is correct? To find out, buy the book.

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From Ethan Beberness

This brings us to Schulte’s bonuses — which people who see Biglaw as roman à clef based on SRZ might view as hazard pay. The news is pretty straightforward, basically the same as past years: a match of the market rate (i.e., the Cravath scale), plus additional $10,000 bonuses at the 2300- and 2500-hour marks.

Would you bill 200 more hours to get an extra $10K? Most of you would probably say no. But one could argue that if you have to bill a ton of hours in a given year anyway, due to the demands of your cases or matters, you might as well be financially rewarded for it. Many associates at top lockstep firms like Cravath and S&C bill 2300 or more hours and don’t get paid extra for it (setting aside that sweet, sweet prestige).

As was the case last year, the Schulte Roth bonuses will be paid all at once, in mid-January. You can flip to the next page for the complete SRZ bonus memo.