Sidley Announces Bonuses That Some Associates Describe As 'Cheap' And 'Embarrassing'
Ouch. Please note the numerous updates.
We’re almost midway through December, and it’s not just the air that’s getting colder. Biglaw bonuses continue to be announced, but associates at some firms feel like they’re getting the cold shoulder from partners who have decided to attach billable-hours requirements to their special bonuses.
Sidley Austin, one of the highest grossing firms in the country, is matching the Cravath scale for bonuses and special bonuses alike, but it’s the latest firm to tack on an hours requirement to its special bonuses. To say that associates at the firm are mad would be an incredibly polite way to phrase it.
Please note the numerous UPDATES below.
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Here’s what both bonus scales look like at the firm:
Class Year
2020 Year-end Bonus
Special Bonus
2012+
$100,000
$40,000
2013
$100,000
$40,000
2014
$90,000
$37,000
2015
$80,000
$32,500
2016
$65,000
$27,500
2017
$50,000
$20,000
2018
$25,000
$10,000
2019
$15,000
$7,500
So, about those hours requirements… Sidley wants associates to have 2,000 qualifying hours for full bonus eligibility (1,800 of those hours must be a combination of client chargeable and legal services to the firm hours, and the remaining 200 hours can be a combination of pro bono hours, up to a maximum of 50 hours of qualifying knowledge management/practice development, and up to a maximum of 25 hours of qualifying observational training). Fine. Whatever. Plenty of firms still have hours requirements for full bonus eligibility, even during the pandemic. What is not fine is the fact that Sidley is also requiring associates to have 2,000 qualifying hours to be eligible for the special bonus that other firms are handing out just to show their kindness and appreciation for associates’ efforts during the coronavirus crisis.
Sidley associates are enraged. Here’s just a sample of what we’ve been hearing:
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People are pissed on the COVID bonus hours requirement. One partner let slip only 10% of associates at the firm are eligible.
I’m disheartened that Sidley has decided to limit the COVID appreciation bonus to those who billed at least 2,000 “qualifying” hours. That’s not really showing appreciation to all the stress associates have had to endure during the pandemic, including any periodic slowdown in work.
Sidley only giving special bonuses for 2000 hours, 1800 of which must be billable. In my group, only 2 of around 20 hit hours (normally everyone does). To say people are angry is putting it mildly. Partners spent the pandemic chilling at their lakehouses and taking private jets to vacation, and Sidley keeps bragging about how financially the firm is having a record year and beating last year. Partners are lining their own pockets with extra profits instead of compensating associates who are working under shit conditions (Sidley didn’t even offer a tech stipend or anything to help associates set up home offices after shutting down the firm offices). Morale was already in the toilet, and this made it so much worse.
Sidley Austin announced its bonus scale and associates are fuming. You’re still required to hit 1,800 for good standing, 2,000 for bonus, and they’ve tied COVID bonuses to 2,000 as well.
Sidley bonuses out. Matched market, BUT added 2000 hour requirement for COVID bonuses. Associates are livid. Not only because profits are way up, but because it’s embarrassing.
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Sidley being cheap as usual. We’ve seen no appreciation during the pandemic. No tech stipend, no support, no outreach, and now no COVID bonus for almost all of the associates. Hardly anyone reaching the 2,000 hour requirement.
I knew Sidley was cheap, but I didn’t expect that they would be this cheap. Of all years, this year would have been a great time to be a tad more generous like our “peer firms”, show that the firm actually cares and boost associate loyalty. Turns out all that the talk we’ve heard regarding the firm’s strong earnings and focus on our people was just… talk.
At our associate townhall this fall, mgt was asked whether our hours requirement would be waived or reduced, in recognition of interrupted deal flow and challenges that folks face at home(kids or no kids). Mgt’s response was that it would be “offensive” to be paying out high bonuses, in light of the macro-economic disaster and difficulties faced by our clients. Well, show me your PPP numbers for 2020, and we can then talk about what kind of compensation is “offensive”. And they wonder why we have low morale and trouble attracting top talent from T4 schools!
On the bright side, at least we are all working from home, and I won’t have to worry about bumping into elated Willkie Farr associates in the elevator lobby at 787 Seventh Avenue.
Only 10 percent of associates reportedly qualify for appreciation bonuses at Sidley with these requirements? Ooof. “Cheap” and “embarrassing” is probably not how the firm wants its compensation to be described by its own associates, but here we are.
On the bright side, once an associate reaches 2,000 qualifying hours at the firm, they’ll be eligible for increased bonuses. Sounds like very few people will be getting that extra cash this year at Sidley. Sorry, everyone.
UPDATE (3:25 p.m.): It seems that not everyone is miffed about the bonus situation at Sidley. Here are some additional, more positive reactions we’ve received:
I’m a Sidley associate and I think folks in my office are very happy with bonuses. Everyone in my group hit hours. Made significantly more than market including the Covid special bonus. Even folks that were way under hours are still getting 50% year end bonuses in some reduced amount. Also like the 10% of associates hitting 2k seems completely inaccurate. Year over year hours were reported to be up at least in litigation.
To the extent folks hit their hours, Sidley was extremely generous in awarding over market bonuses (even including Covid bonuses). I think associates are very pleased, at least in my group where virtually everyone was over the 2000 requirement. I also think that folks who were under 2000 got 50% of market (at least). Also the litigation practice as a whole was up over last year in terms of hours. I think the 10% eligible number for special bonuses being reported is extremely inaccurate. Anyway, just wanted to give y’all a different perspective.
I have been at Sidley for almost 8 years now and I can tell you that Sidley pays well above market bonuses every.single.year. Sidley has hours requirements like most peer firms do but they are giving bonuses this year even to people who were well-below their hours. They also expanded the allowance for hours so that people who helped with non-billable COVID research and pro bono projects got credit for those hours. And that work was available in an ABUNDANCE. No one who exerted effort to meet their hours would have been unable to do so. Every year when Sidley bonuses are paid, my junior associates call me astonished at how generous Sidley is. To characterize the firm as anything less is wrong. Just for a little context, my market bonus, including the COVID bonus would be $140K. But my bonus from Sidley is [higher than a first-year salary]. That is consistent with the level above-market that other associates at Sidley are receiving and regularly receive.
I’m thrilled with my bonus – received the Cravath scale + special bonus + $50k on top. So I’m not sure what people are talking about. Sidley’s being incredibly generous. Also simply not true about only 10% receiving a special bonus. I also don’t work with any partners that have been flying around in private jets. Might want to start doing some fact checking.
UPDATE (4:30 p.m.): And still other Sidley associates want to comment on these bonuses:
I’m a Sidley associate and have not heard ANYTHING positive about the bonuses. No one I know has heard anything about getting 50% of the bonus if under hours, either. Can you check your sources on that update? Sounds like HR damage control….
Regarding the article update on Sidley, I am very curious who are these people getting 50% bonuses for being “way below” hours. No one in our group who didn’t hit hours got anything, even people who were fairly close. Really emphasizes the “individualized bonuses” part – clearly they are rewarding some people over others for the same amount of work. I guess we are the new Jones Day!
UPDATE (5:35 p.m.): We received this message from a firm partner. Sidley’s management committee sent this memo around to all partners earlier this afternoon:
In regards to the Above the Law story that came out today, please know that 80 percent of Sidley associates received bonuses. A substantial majority of associates received the extra COVID bonus. The Firm paid 45 percent more in bonuses this year compared to last year. We value our associates, who are of the highest caliber and quality. We wanted you to be aware that misinformation is circulating, and to have the facts should you be approached by our associates.
Another partner had this to say: “It’s really unfortunate that a vocal minority has twisted the narrative. Sidley stepped up.”
UPDATE (12/11): And still more associates want to chime in about these bonuses, on both sides. Some people are thrilled with their bonuses, and some are not.
The associates quoted in your article about Sidley bonuses are not representative of the firm, or reality. The firm did what it has always done: provide fair compensation to people who fall short of their requirements and generously reward those who exceed expectations. For high performers, total bonuses exceed 150% of the standard + special bonus.
The positive comments below miss the point completely: Sidley is a top tier firm (and certainly charges clients as such), and our peer firms have consistently done a better job compensating their associates by having lower or no billable hours targets. We are not surprised by Sidley’s memo but are nonetheless disappointed given the special circumstances of this year and also given that the firm has reassured us on numerous occasions that the firm is in fact UP in revenue as compared to last year. From a working parent’s perspective, the most disturbing aspect of Sidley’s memo is the fact that it seems to utterly disregard our situation. The firm set up a working parents committee and yet here they are punishing us (and other caretakers) for not hitting hours when some of us have been sick, have had family members that were sick, have had to become teachers to our kids… It REALLY saddens me that the firm is not supporting us in the same way other firms are supporting their associates.
Re: the positive comments, it is highly suspicious that associates would not advocate for a compensation system that is more in line with other top tier firms. Truly bizarre. I have not heard any positive feedback from ANY associates.
Sidley Austin bonuses above market. I lateraled into the firm and received Cravath scale + COVID bonus + step up bonus. Very pleased. Importantly, all pro bono, most knowledge management, and even diversity and recruitment hours counted. It was very difficult not to make the bonus. That said, I heard that 85% of Associates received their bonuses this year. So, (obviously) there is a vocal 15% minority.
[T]o whomever is saying that only 10% of associates are getting COVID bonuses, that is utterly false. I know from multiple partners and associates that Sidley has been giving out partial bonuses, so even if you didn’t hit 1800, you’re still getting something. More importantly, the 2,000 hour requirement to get the “full” special bonus includes essentially unlimited non-client billable hours. Although in principle those are capped at 200 hours a year, this year they’ve been counting way more of those hours towards peoples’ bonus eligibility. Basically, as long as you were breathing and doing SOMETHING for the firm (pro bono, COVID-task force, article writing, CLEs, etc), you got credit for your hours and should get the special bonus.
Sidley is definitely damage controlling. No one is happy in NYC to the point we’re having a meeting with the comp committee. These reports are fake. Sidley swears they don’t give bonuses above comp so if someone got an extra 50k then Sidley isn’t following their own policy.
Every associate I’ve spoken with in my group made hours, and everyone is extremely pleased with their bonus. I am non-New York, and my personal experience has been that Sidley exceeds market every year (by a lot). This year was no exception. It is very frustrating to see some of these comments about Sidley being cheap, and I can say definitively that they do not represent associate sentiment firm-wide.
(Flip to the next page to read the Sidley Austin bonus memo in full.)
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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.
