Ben Thomson, LawFuel contributing editor
While most big law firms are handing out both regular year-end bonuses and special bonuses this year, a couple of major players – Hogan Lovells and Perkins Coie – decided to skip the special bonus part – until now.
The regular year-end bonuses range from $20,000 to $115,000 depending on how long you’ve been practicing. The special bonuses that most firms are giving (but these two aren’t) would’ve added another $6,000 to $25,000 on top of that.
But Bloomberg Law report that Hogan Lovells have now come to the bonus party with a second round of payments.
The second round bonuses range from $6000 to $25,000 based on seniority and follow consultation with associates and partners over the earlier decision to skip the process – which evidently didn’t go down well when other firms were making the special payments.
The Hogan Lovell payments follow the bonuses already paid ranging from $20,000 to $115,000.
What’s interesting is the decision by firms like Hogan Lovells and Perkins Coie to move away from the lockstep march to keep pace with other big law firms.
That has obviously changed, but there is also a change in attitude occurring. Katherine Loanzon from Kinney Recruiting makes the point that firms just aren’t feeling the same pressure to match every bonus announcement like they used to – a point LawFuel reported very recently as biglaw attitudes have changed.
Remember that crazy period in 2021 when firms were throwing money at associates left and right? Many still take a lead from firms like Milbank and Cravaths, who also made Christmas bonus payments.
Milbank actually tried to start the special bonus trend this summer, but something unusual happened – nobody immediately jumped to match them. It wasn’t until Cravath announced their bonuses that other firms started following suit.
Some firms are getting creative with their approach. For instance, Fish & Richardson and Katten are saying “sure, we’ll give you the special bonus, but you need to hit 2,000 hours first.”
Kate Reder Sheikh from Major, Lindsey & Africa thinks the change in attitude towards bonus payments might be the start of a trend. More firms might decide to skip these special bonuses to avoid setting expectations for future years. After all, they’re called “special” bonuses for a reason, right?
The big takeaway? Law firms are being more strategic about compensation these days. They’re looking at their budgets realistically and thinking long-term rather than just trying to keep up with the Joneses (or should I say, the Cravaths?).
And interestingly enough, some firms are finding they can keep their associates happy without always matching the top of the market.
Are you seeing similar bonus patterns at your firm or hearing chatter from friends at other firms? It’s definitely a different landscape from what we saw just a few years ago.
Interesting read. It’s surprising to see Hogan Lovells and Perkins Coie stepping out from the usual trend of special bonuses. Wonder how that’s gonna impact their year-end morale. Guess money isn’t everything, or is it?
Actually, MaxT91, from what I’ve seen, morale can deeply be affected by the recognition reflected in those bonuses, not just the cash itself.
Really insightful article, Ben Thomson! It’s great getting a peek into the bonus structures of these big law firms. Makes me wonder about the culture in those places.
when they gonna start giving bonuses for just showing up? asking for a friend
Skipping special bonuses, huh? Perhaps it’s time to reflect on the true value firms place on their employees. Money speaks volumes, and silence is deafening in this case.