A growing number of boutique law firms are offering associate bonuses that match or surpass market rates set by top firms like Milbank, but some BigLaw firms are not following suit. According to Above the Law’s bonus tracker, which now includes over 50 firms, including nine boutiques, more than five have announced above-market bonuses since December.
Susman Godfrey is paying median bonuses ranging from $110,000 to $220,000, while midsize firm Boies Schiller Flexner is offering bonuses of $1 million or more to some associates. Other boutiques like Selendy Gay and Wilkinson Stekloff are also handing out above-market bonuses.
In contrast, several BigLaw firms including Perkins Coie and Hogan Lovells are not paying routine special bonuses that typically range from $6,000 to $25,000. However, these firms may offer additional bonuses to associates who meet certain hourly minimums.
Industry experts say boutique firms have an advantage in offering above-market bonuses due to lower overhead costs and a smaller associate pool. The current market for associates is “muted” following talent wars in 2021, but firms are now looking at what they can afford amid a period of reduced competition.
Source: https://www.abajournal.com/news/article/2-biglaw-firms-reject-routine-special-bonuses-as-several-boutiques-match-or-surpass-the-market-rate