Dallas-based litigation firm McKool Smith and global legal giant Norton Rose Fulbright have joined an extended list of corporate law firms operating in Texas to pay its associates and counsel five-digit special bonuses.
Norton Rose Fulbright and McKool Smith have informed their non-partner lawyers that they will receive bonuses ranging from $12,000 for first year associates to $64,0000 for eighth-year lawyers. The bonuses will be split – about half paid this spring and half this coming fall.
“The intent is to acknowledge how tough a year 2020 was and to reward our associates for their hard work,” Jeff Cody, managing partner of the U.S. operations of Norton Rose Fulbright, told The Texas Lawbook.
Cody said these are special bonuses in addition to the regular holiday bonuses. He said the firm requires associates to bill at least 1,950 hours during the year to qualify for the bonus, but that 50 of those hours can be working on pro bono or diversity efforts. Associates working part-time or reduced hours also qualify for the special bonus, which will be prorated.
Akin Gump and Vinson & Elkins told its associates last week that they would match bonuses first announced by New York law firms Milbank and Davis Polk.
A slew of national law firms operating in Texas – including DLA Piper, Kirkland & Ellis, Latham & Watkins, Morgan Lewis, Paul Hastings, Pillsbury, Shearman & Sterling, Sidley Austin, Simpson Thacher, Skadden Arps, Weil Gotshal, White & Case and Willkie Farr – also announced they are rewarding their associates with the same bonus amounts.
What does all of this mean?
First year associate salaries now stand at $190,000 a year. Law firms – including most of those listed above – gave those rookie lawyers bonuses ranging between $10,000 and $25,000 during the holidays. Now add another $15,000 to that.
Corporate law firms on average pay their eighth year associates an annual compensation of $340,000 to $375,000. Many of them received holiday bonuses between $75,000 and $125,000. The $65,000 special bonus will bring senior associate pay to more than $550,000.
Those associates may not get a trip to Disney, but they can do much better: Buy a customized BMW convertible from Sewell with cash.
Editor’s note: Sewell did not pay for the frivolous mention of its auto dealership in this article nor does this publication engage in product placement for compensation. Furthermore, The Lawbook encourages all of its readers to spend and drive responsibly.