Firm Brought In Record-Breaking Revenue, But Left Associates Disappointed By Bonuses

Businessman holding money for auction biddingAn above-market bonus may feel like cause for celebration. But when you work at a firm that has awarded above-market bonuses for years, a bonus that skims just ahead of the competition is a very real pay cut. Kirkland & Ellis spent 2021 bringing in more revenue than several small countries, but associates are reporting that they’re not seeing as much of that largesse as they’re used to.

K&E doesn’t award lockstep bonuses, but associates generally end up with bonuses around 30-40 percent over the market scale. We occasionally hear reports of folks coming in around 25 percent, and occasionally folks push double the market, but over the years, 30-40 percent is a good estimate.

The good news is that everyone over 2000 hours is reportedly above market. The bad news is that it’s not by much.

S_and_H_v1_1200x1200 Sponsored Sherman & Howard Is Seeking Corporate Associates In Denver From Sherman & Howard

This year, despite the firm’s massive haul, associates are reporting lower overall bonuses than expected. So far, we’ve only heard from one associate in the customary multiplier range. Most, though, are much lower.

Barley beat market. Lowest multiple over market I’ve received since I’ve been at the firm. Firm didn’t put their money where their mouth is. Disappointed to say the least.

googletag.cmd.push(function () { googletag.display("div-id-for-storycontent-440x100"); }); googletag.cmd.push(function () { googletag.display("div-id-for-in-story-youtube-1x1"); });

One mid-level reported a roughly 10 percent bonus based on a 2800-hour year. Another mid-level reported a bonus 15 percent over market. These are significant figures, because based on the hours these associates report, the bonuses would’ve been a lot bigger at some other places… some other places who hire from the same pool as Kirkland.

So not only is KE no long a market leader in bonuses, we’re not even matching the bumps that firms like Baker M, Dechert, and Cadwalder are giving out for high billers. And that’s despite higher-than-ever revenue, profit, and all the #1 rankings. Won’t be putting in those hours again.

mountain_achieve Sponsored How You Transform The Legal Department Into A Strategic Force This new eBook from our friends at Conga explores 3 concrete ways to help a corporate law department contribute to business goals. From Above The Law and Conga

Kirkland’s always had a black box for its bonuses, but it used to provide transparency by reporting out its metrics, giving folks a thumbnail sketch of where everyone stood, but they stopped doing that last year according to a senior associate who clocked around 1.15x the market standard. One tipster has a theory for the sudden uptick in opacity:

People are pissed. The multiple is lower. The zoom with the chairman was vague and unhelpful. They brought in another top partner a few days later . He was equally vague. I billed 3000. My buddy got a better multiple for same hours as a first year. The sense is the firm is inflating firm year bonuses to misrepresent the average multiple.

It could be. That would explain why — at least in our sample — the bigger multiples tend to be among younger classes. Still, folks are left wondering why the firm couldn’t scrounge together a few more bucks for the talent delivering for them all year.

There are about as my equity partners as first years. Means giving a $5k stub reduces $6+ million ppp down to a paltry $6+ million ppp. Partners average $16,000 per DAY, couldn’t shell out $15 a day? Going to remember that when they want me to work through life events.

This sounds like one of those late-night commercials:

Did you know, that for a mere $15/day, you could keep your associates from entering the lateral market?

Anyway… congratulations on the bonuses. Maybe next year the firm can bring in $5 billion and spring for an extra $1000 per associate.

*** Wondering if the grass is greener on the in-house side? Click here for a look inside the black box of corporate counsel pay in our 2021 In-House Compensation Report. ***

Remember everyone, we depend on your tips to stay on top of this stuff. So when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.

And if you’d like to sign up for ATL’s Bonus Alerts (which is the alert list we’ll also use for salary announcements), please scroll down and enter your email address in the box below this post. If you previously signed up for the bonus alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each bonus announcement that we publish.

HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

Enter your email address to sign up for ATL's Bonus & Salary Increase Alerts. hbspt.forms.create({ css: '', portalId: '470182', formId: '918f9998-ad56-4438-b7e2-7d3c4676b70e' }); #hs-form-918f9998-ad56-4438-b7e2-7d3c4676b70e { border: 1px solid #e2e2e2; border-width: 1px 0; margin: 15px auto; padding: 15px 0; } #shs-form-918f9998-ad56-4438-b7e2-7d3c4676b70e h2 { font-size: 24px; line-height: 28px; } #hs-form-918f9998-ad56-4438-b7e2-7d3c4676b70e > p { color: #666; font-family: sans-serif; font-size: 13px; margin: 0.625rem 0 1.25rem; } #shs-form-918f9998-ad56-4438-b7e2-7d3c4676b70e form { display: flex; flex-wrap: wrap; align-items: flex-start; } #shs-form-918f9998-ad56-4438-b7e2-7d3c4676b70e form .hs_email label { display: none; } #hs-form-918f9998-ad56-4438-b7e2-7d3c4676b70e .hbspt-form { background: none; padding: 0; } #hs-form-918f9998-ad56-4438-b7e2-7d3c4676b70e .hbspt-form div { display: inline-block; margin: 0; padding: 0; } #hs-form-918f9998-ad56-4438-b7e2-7d3c4676b70e input[type=submit].primary { background-color: #6288a5; background-image: none; cursor: pointer; padding: 8px 20px; font-size: 16px; line-height: 24px; vertical-align: middle; } #email-918f9998-ad56-4438-b7e2-7d3c4676b70e { border-radius: 0; font-size: 22px; margin-right: 8px; padding: 5px; vertical-align: middle; width: 300px; border: 1px solid #999999; background: white; box-shadow: inset 0 1px 1px rgba(0, 0, 0, 0.15); height: 50px; outline: none; font-family: "Proxima Nova", "proxima-nova", Helvetica, Arial, sans-serif; color: #666666; -moz-border-radius: 0; -o-border-radius: 0; -webkit-border-radius: 0; } Topics

Associate Bonus Watch 2021, Biglaw, Bonuses, Kirkland & Ellis, Money


Introducing Jobbguru: Your Gateway to Career Success

The ultimate job platform is designed to connect job seekers with their dream career opportunities. Whether you're a recent graduate, a seasoned professional, or someone seeking a career change, Jobbguru provides you with the tools and resources to navigate the job market with ease. 

Take the next step in your career with Jobbguru:

Don't let the perfect job opportunity pass you by. Join Jobbguru today and unlock a world of career possibilities. Start your journey towards professional success and discover your dream job with Jobbguru.

Originally posted on: https://abovethelaw.com/2021/12/kirkland-bonuses-2021/