2 BigLaw firms flip-flop on associate special bonuses, agreeing to pay market rate
Hogan Lovells and Perkins Coie have decided to pay special bonuses at the market rate of $6,000 to $25,000 after associates were initially told that they wouldn’t receive the money as a matter of course. (Image from Shutterstock)
Hogan Lovells and Perkins Coie have decided to pay special bonuses at the market rate of $6,000 to $25,000 after associates were initially told that they wouldn’t receive the money as a matter of course.
The special bonuses will be paid in addition to year-end bonuses ranging from $20,000 for the class of 2023 to $115,000 for the most senior associates, report Law.com and Above the Law, which published the new bonus memos here.
“It’s not the first time a firm has changed its mind about associate bonuses,” Law.com reports, “and it likely won’t be the last. Backlash from associates, concerns from partners about losing key associate talent, and peer firm pressure are just some of the reasons why a firm may reverse a decision when it comes to associate bonuses, according to legal industry observers.”
Hogan Lovells initially said it wasn’t paying routine special bonuses but it would give additional money to associates who exceed minimum hours. Now, it will pay special bonuses “on top of the other associate bonuses awarded,” a spokesperson told Law.com. “This means that many of our associates who qualify for the hours-based bonuses can earn bonuses above the announced scale of many other top firms.”
The spokesperson told Law.com that Hogan Lovells decided to match the market rate for special bonuses “following discussions with associates, partners and other stakeholders. An important part of our culture as a firm is that we listen, and we have made this decision after careful consultation.”
A Perkins Coie spokesperson told Law.com that its decision “is consistent with our commitment to paying market-competitive compensation and reflects the firm’s strong financial performance this year.”
