Bonus season – the pros of treating junior lawyers fairly, if not equally
Back in May, Legal Week tallied up the number of law firm jobs placed at risk of redundancy over the previous 12 months. The figure reached was a rather shocking 1,300, including some 750 jobs that had actually been cut at that point. Since then, the number of firms announcing redundancy programmes has slowed dramatically, although not completely. Several firms including DWF, Taylor Wessing and Bond Dickinson have made cuts – particularly following mergers and back office outsourcing deals.
December 05, 2013 at 07:03 PM
3 minute read
Back in May, Legal Week tallied up the number of law firm jobs placed at risk of redundancy over the previous 12 months. The figure reached was a rather shocking 1,300, including some 750 jobs that had actually been cut at that point.
Since then, the number of firms announcing redundancy programmes has slowed dramatically, although not completely. Several firms including DWF, Taylor Wessing and Bond Dickinson have made cuts – particularly following mergers and back office outsourcing deals.
Many law firms had fat to shed when the downturn hit, but it is support staff and fee earners who have borne the brunt of their slimming-down efforts. Partners have been 'restructured', 'managed out' and 'de-equitised' along the way, but in nothing like the same numbers. And more to the point, partner profits have as a whole been only marginally affected.
So as more confidence returns to the market, it has been encouraging to see firms taking steps to reward their best-performing junior lawyers again after a run of pay freezes across the market. This week Linklaters joined fellow magic circle firms Slaughter and May and Freshfields Bruckhaus Deringer in introducing a merit-based component to associate pay. From next May, Linklaters associates with more than two years' PQE will be eligible for a bonus relating to performance. Meanwhile, Slaughters this week unveiled details of its new package, topping up its best lawyers' pay by up to 12%. RPC announced similar performance-driven initiatives last month.
Whether associate salaries are set at the right starting level is a separate argument, but the introduction of a merit-based element – particularly one not so strongly rooted in billable hours targets – is easy to get behind.
Law is – and is set to remain – a hard-working, long-hours profession. Few who start out doing their LPC and GDL will end up as partners. But the structure of the profession, with its tightly guarded equity, is such that it relies upon a bedrock of knowledgeable junior lawyers to make the sums work and to keep client bills down.
Many studies will tell you that money is often not, despite what people may think, the primary reason for workplace happiness. Recognition, by contrast, plays a big part. And little causes more resentment in the office than the feeling that others are not pulling their weight or that your hard work is going unrecognised.
So while the number of fee earners receiving these merit-based bonuses will probably be far lower than the excitement generated by firms would have you believe, such structures – used correctly – will be a strong retention tool for the people they really need to keep.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllMcDermott Hits Paul Hastings In London Again As Macfarlanes Also Swoops For Talent
2 minute readRe-Examining Values: Greenberg Traurig's Executive Chairman on the Lessons of the Pandemic
4 minute readDiversity Commitments Feel Hollow When Firms Cosy Up to Oppressive Regimes
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250