Mamas, don’t let your babies grow up to be cowboys
Don’t let ’em pick guitars or drive them old trucks,
Let’em be doctors and lawyers and such — Willie Nelson and Waylon Jennings
Willie and Waylon had today in mind when they sang the country music classic.
Two large Texas corporate law firms — Dallas-founded Akin Gump Strauss Hauer & Feld and Houston-based Vinson & Elkins — today informed the hundreds associates that both firms employ that they will be receiving year-end bonuses ranging from $21,000 for first-year lawyers to $140,000 for associates in their eighth year.
Akin became the first Texas legacy corporate firm to announce bonuses this morning and V&E followed quickly thereafter. Additional law firms are certain to follow.
New York-headquartered Milbank kicked off the associate bonus season more than a month ago. Several large corporate law firms have followed, including five — O’Melveny & Myers, Paul Hastings, Skadden Arps, McDermott and Weil Gotshal — that have offices in Texas.
A Fort Worth energy litigation boutique, Vartabedian Hester & Haynes, announced two weeks ago that it also would match the Milbank bonuses for its associates.
Scott Barnard, partner in charge of Akin’s Dallas office, said the generous bonuses are a sign of a strong legal market and the competition for talent in Texas.
“We had a record financial year in 2023 and we are seeing another strong year,” he said.
Barnard pointed out that Akin has strengthened its energy transitions practice due to heavy client demand and the firm’s leading regulatory and public policy practices are hotter than ever because clients are needing guidance with the upcoming change in presidential administrations.
In an email to the firm’s associates, V&E chair Keith Fullenweider wrote that he “expects to pay supplemental bonuses to associates who had an exemplary year.”
“We remain committed to paying competitive compensation to our attorneys and continue to be excited about future opportunities for Vinson & Elkins and for you,” Fullenweider wrote.
First-year associates, who have an annual base salary of $225,000, will receive a year-end bonus of $15,000 and a special bonus of $6,000, which will be prorated for their time at the firm and based on the lawyers meeting specific performance measurements.
Associates in the hiring class of 2020 can expect a year-end bonus of $75,000 and an additional special bonus of $20,000 to go on top of their $365,000 annual compensation.
Eighth-year associates — those who graduated from law school in 2017 and are up for partnership next year — are receiving a $115,000 year-end bonus and a $25,000 special bonus. When combined with the eighth annual salaries standing at $435,000, total compensation for senior associates will top $575,000.