Will SJ Berwin lawyers get their 75% bonus? Only if they bill 2,500 hours
Legal Week reports
November 29, 2006 at 07:03 PM
2 minute read
SJ Berwin associates hoping to receive the firm's 75% bonus will have to bill around 2,500 hours a year, in addition to other contributions, it has emerged.
The recently introduced scheme, which is aimed at rewarding top-level performers, will require associates to bill 2,500 hours in addition to further non-chargeable contributions in order to receive the maximum bonus of 75% of salary. The firm's average billable hours target is set at 1,575.
Partners within the firm estimate fewer than 5% will reach the top level, which would gift a two-year qualified lawyer with a £66,000 base salary a bonus of £55,000.
The changes to the associate bonus system, announced on 24 November, will operate with a tiered structure. Most of the bonus – up to 60% of salary – will be based on chargeable contributions. Previously the maximum bonus was 27.5% of salary. The new bonus will kick in after a lawyer has billed 1,750 hours, at which point associates will get a reward of 2.5% of their base salary. The bonus rises steadily depending on the amount of hours charged, up to 2,500.
Managing partner Ralph Cohen said: "We are not saying that is what we want people to do, but that is what some people are doing. We wanted to reward some of the stellar performers who have worked really hard over this busy period, but we are also paying out more in the lower bands."
Non-chargeable contributions, such as client development, will also be taken into account, with a reward of 12.5% of base salary available. The firm has retained an additional 2.5% bonus linked to the firm's overall performance.
The scheme is the result of management discussions lasting nearly a year and will be backdated to May 2006, with the bonuses paid in two instalments from 1 May, 2007.
SJ Berwin is the latest City firm to revamp its associate pay structure, with Allen & Overy and Slaughter and May also announcing changes in recent months.
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