Texas trial firm Vartabedian Hester & Haynes is the first firm to announce a year-end bonus scale that matches Milbank's year-end bonus scale, which also incorporates the firm's earlier summer bonuses.

Vartabedian partners notified associates that it will pay bonuses ranging from $21,000 to associates from the class of 2024 up to $140,000 for associates from the class of 2016, according to a memo Vartabedian partners sent to associates on Wednesday, only two days after Milbank's announcement on Monday. The memo was first reported by Above the Law.

The Big Law bonus scale is a strong statement for Fort Worth-based Vartabedian, which was launched in late January by 10 energy litigators from Alston & Bird. The firm later added an office in Dallas, and, according to its website, has 15 lawyers.

However, founding partner Robert Vartabedian said in an interview the firm wasn't trying to send a message to the market from a firm that hasn't even celebrated its first anniversary.

"We were just trying to compensate the associates for the work they put in and the risk they took in leaving established law firms," he said.

The firm had "no real income" in January, February and March, but over the last seven months, the firm has been busy and had success in a couple contingent fee matters.

"Those seven months were good enough to put us in a position to have a very good year," he said.

The year-end bonuses will be paid at the end of the year to associates in good standing who have met the firm's 1,800-hour annual billable hour goal, and are employed with the firm on the date the bonus is paid, subject to start date prorations, according to a memo from partners provided to The American Lawyer by the firm.

The bonuses are in addition to signing bonuses and special bonuses including a $5,000 profit share awarded in May. Vartabedian said the profit share marked the time when the firm started making a profit.

"We started the firm with seemingly inconsistent goals: to provide the same level of excellent client service and results as when we were in Big Law, but at substantially lower rates; to lower billable hour requirements for associates, but to compensate associates in line with the top of the market. Despite no material revenue for the first three months of 2024 as we launched the firm, our hard work, dedication, and devoted clients put us in a position to meet all of these goals this year," the firm's partners wrote in the memo.

The partners wrote in the memo that the bonuses reflect the firm's commitment to "rewarding the high standard of work you consistently deliver and ensuring that your contributions are both recognized and valued."

Vartabedian's year-end bonus scale for associates:

  • Class of 2024: $21,000
  • Class of 2023: $26,000
  • Class of 2022: $40,000
  • Class of 2021: $72,500
  • Class of 2020: $95,000
  • Class of 2019: $115,000
  • Class of 2018: $130,000
  • Class of 2017: $140,000
  • Class of 2016: $140,000