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Subject Expert
Some people on here were repeating the narrative that firms aren’t doing well. That’s why I shared this. I’m not naive about associate leverage.
Mentor
The last two years have been relatively challenging. It looks as though this year will be better. I would love to see the article that you looked at that shows 26% increase, though.
Special bonuses are not about the financial health of the firms or partner comp, they are a question of associate leverage.
Mentor
But why would they? There is no incentive for partners to do this. The goal of a law firm is to make partners money. Why would they share when they don’t have to and the market is so tough for associates that they won’t leave?
Subject Expert
Most definitely an unbiased take from a legal recruiter!!!
Coach
People are leaving Milbank at a rate Milbank can’t replace them. That’s not a good thing. The other firms are not going to throw money at a problem they don’t have.
Enthusiast
Associates have no leverage in this market. Who’s leaving? You, OP?
I think it's more like 1) I'm good, 2) I don't take a pay cut for lateraling and can actually maybe at least guarantee my bonus and get a sign-on, 3) vacation time/ramp down, and 4) screw my group for not valuing me despite all the good/hard work I've done. I mean this is my mentality. I have zero concerns about getting fired or laid off or not landing somewhere. I am a bottleneck in my group. I'm also in it for money and need a vacation so...what's the downside? Not like I'm going to not do well at another firm and not like this firm is offering something others aren't (other than lax remote policy).
Coach
26%? Over what period?
The high single digit % rate increases alone justify these bonuses.
Subject Expert
Compared to last year.
The issue is these associate bonuses cut into partner profits and it's been a market bloodbath for poaching entire teams the past few years as firms try to strategize for the next market boost.
Dont need any more incentive to make partners leave.