Special Bonuses Are Just Another Way To Keep Associates Hooked On Biglaw

It’s super easy to get blown away by the big money being given away by Biglaw. In addition to the typical year-end bonuses, this year, Biglaw is giving out special bonuses — ranging between $12,000 and $64,000, depending on class year — across two payment dates. While that’s nice for associates’ bank accounts, it can also act like golden handcuffs keeping them in Biglaw until the last deposit is made.

Corporate Counsel details how in-house recruiters and Biglaw firms are “slugging it out” over a limited supply of talent. Recruiter John Gilmore points to the bonuses as a clear factor in the associate battle:

“We’re trying to pull a lot of women and minorities out of law firms and bring them in-house. It’s not an easy task,” Gilmore said. “These law firms are doing everything they can to hold onto people. The comp is high. The bonuses are high.”

….

“Before, we only had to worry about the bonus that was paid once a year. Now, they’re paying bonuses three times a year. It’s just a way of keeping a hook in these lawyers to stick around,” Gilmore said. “The good news for them is that it’s working.”

He added, “It’s not that we can’t close deals. But it’s taking a lot more at-bats to get it done.”

As we’ve noted in the past, Biglaw is well aware how valuable associates are right now. And, yes, they are using the bonuses to keep them at the firm:

Bill Malley, firmwide managing partner at Perkins Coie’s Washington, D.C. office, explained in a written statement that the beefed-up bonuses “reflect our commitment to recruiting and retaining top talent to provide the highest quality legal work and client service.

“Our record profitability in 2020, along with a strong first quarter and the firm’s consistent conservative financial management have positioned us to provide these compensation and bonus enhancements,” he added.

The biggest takeaway is, of course, that associates have a lot of options right now. So use that information to make your career work for you.

Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).